In an extraordinary general meeting on 21 March, tyre maker Multistrada Arah Sarana changed its articles of association allowing it to enter into the rubber plantation business. As a result the firm expects to cut raw material costs by 10 – 15 per cent.

Multistrada plans to enter the rubber plantation business by acquiring 20,000 – 30,000 hectares of rubber plantation. In addition, the company will reportedly build a rubber processing plant with a 5,000 tonnes per annum capacity. The aforementioned rubber plantation would be equivalent to around 70 per cent of Multistrada's annual natural rubber requirements. The acquisition of necessary land is scheduled for completion during the first half of this year.