Malaysia rubber gloves makers optimistic about market rebound

Kuala Lumpur – The Malaysian Rubber Glove Manufacturers Association (MARGMA) expects a rebound in demand for rubber gloves over the three years to 2027.

Despite a continued downturn in 2023, with global demand for rubber gloves dropping to 307.2 billion, there is optimism for a rebound in 2024, MARGMA said 19 April.

Demand, the Malaysian trade association went on to say, is anticipated to surge to 450 billion pieces by 2027, driven by “key markets” such as the US, EU, and Japan.

Furthermore, MARGMA expects an increase in usage of gloves in non-medical sectors post-Covid, particularly in hotels, restaurants, cafes, semiconductor industries, and others.

MARGMA went on to note that the Malaysian Rubber Council (MRC) anticipates a recovery in demand and “stands ready to support” the industry in achieving its growth targets.

“Collaboration and shared insights will be critical in navigating both local government priorities and international demands,” the association commented.

In this context, the industry should prioritise “fairness, transparency, and sustainability” in all practices and in particular pricing practices, said MARGMA president Oon Kim Hung.

According to Oon, some of the biggest challenges of the industry include the low average selling prices (ASP) and oversupply.

“But this does not mean the Malaysian rubber glove industry players should bend on their ethical practices to counter the stiff competition from regional players,” he added.

In particular, the MARGMA president called for “the immediate removal” of an export 'cess' tax in Malaysia on certain commodities to protect natural resources and local economies.

Removal of the tax, believes Oon, would enable the gloves manufacturing industry to overcome current challenges and enhance its global competitiveness.

The rubber gloves industry’s ‘cess’ tax rate is 0.2%, which according to MARGMA amounts to over RM500 million (€98 million) in annual payments.

MARGMA also called for “streamlining policies” such as a ‘gas supply agreement’, as well as transparency in labour rights to help support the industry.