Rubber Journal Asia Gloves Industry
Malaysia: hand-in-glove with the rubber glove market Though competition is tight in the gloves
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Malaysia remains the world’s leading supplier of medical gloves (examination and surgical gloves), supplying more than 50% of the global demand, according to the Malaysian Rubber Export Promotion Council (MREPC). Its data showed that in 2018, Malaysia exported RM16.2 billion worth of gloves and RM1.6 billion worth of surgical gloves. The Malaysian Rubber Glove Manufacturers Association (MARGMA), an organisation that represents 90% of local glove manufacturers, has forecast that Malaysia will further move up to the global value chain. Its global market share of gloves is anticipated to rise to 68% from 2020. Yearly, the glove industry is anticipated to break in a 15% growth rate.
Malaysia remains the world’s leading supplier of medical gloves, supplying more than 50% of the global demand
“Dyed in the wool” strategies to maintain competitive edge A better business climate can further support the industry, according to MARGMA. In a string of efforts to foster the glove industry’s growth, the Selangorbased organisation has urged utilities firms to reduce their tariff rates as per the price roll in liquefied natural gas (LNG) and coal prices in the international market in the recent months. Addressing the country’s natural gas concessionaire, Gas Malaysia Bhd, and electric company, Tenaga Nasional Bhd, Denis Low Jau Foo, MARGMA’s President, said that adjusting the LNG and electricity prices can help local rubber glove makers cope. The highly competitive business environment has come about as a result of rising costs due to higher wages, higher natural gas prices and higher electricity tariffs for businesses. MARGMA has also sought the cooperation of the Energy Commission in moderating energy costs to make the Malaysian rubber glove industry more competitive in the world market. This, Denis said, was to ensure that Malaysia continues to be the global leader in the supply of medical examination and surgical gloves to the world. This year, the organisation expects its members to export RM19.9 billion worth of gloves, about RM2 billion more from the previous year’s total. Earlier on, the Malaysian rubber glove industry called for an extension and expansion of the reinvestment allowance (RA), which it included in its 2019 budget proposal. The rubber glove industry, considered a matured industry, is no longer granted an RA. The increase in the world standard of healthcare and the ageing world population are driving the gloves demand, according to Malaysian Investment Development Authority (MIDA) in its report. This is also spurring the glove industry, particularly the medical segment, to become more competitive.
industry, according to Malaysia’s industry players, nobody is backing down from meeting the rising global demand for
gloves, says Angelica Buan in this report.
he demand for rubber gloves is growing globally due to the advancement in technological applications and the emergence of various diseases. Global demand for rubber gloves is forecast to expand 3.9% a year between 2016 and 2020. Currently, rubber surgical gloves account for 21.8% of the global demand while other rubber gloves have a 78.2% share of the market, according to Global Research and Development Services (GRDS). Globally, Malaysia, along with Thailand, the US, the Middle East, and Asia Pacific has dominated the global rubber gloves market. A leading rubber glove producer, Malaysia has secured its spot in the world market, being home to four top glove players, including Top Glove, Hartalega, Kossan Rubber, and Supermax, and to date, is already exporting gloves to over 195 countries worldwide.
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