MARGMA urges Putrajaya to allow reasonable number of foreign workers to work in factories

The Malaysian Rubber Glove Manufacturers Association (MARGMA) has reiterated that buyers and distributors of medical gloves across the world need to be extra cautious in not getting scammed or conned by unscrupulous individuals and companies masquerading as representatives of big bona fide manufacturers.

“I urge buyers, distributors and importers to understand that while there is a mismatch in supply and demand, genuine manufacturers are doing its best to supply adequately and not middleman opportunists with fake promises. This industry is a matured and well established industry where businesses and regular buyers are aware of the genuine manufacturers, while newcomers are susceptible to fall victims to scammers,” said Denis Low Jau Foo, President of MARGMA.

He highlighted that the supply and demand dynamics is lopsided due to the Coronavirus outbreak, and the Industry is doing its best to churn out as many gloves as is possible to meet the global demands.

The Association further believes the industry could have lost opportunity on exporting more than 80 billion pieces of gloves in 2020 by not having enough workers and this could translate to about RM7.6 billion loss in extra export revenue for Malaysia.

“ We plead with the Government to allow reasonable number of foreign workers to work in our factories. At the present moment, approximately 40% of our workforce are locals who hold leadership, professional and technical positions and these group are very highly paid. We seek the Government’s support to ensure that enough local workers are available to sustain these top 40% bracket,” urged the President.

MARGMA is revising its export revenue projection for 2020 from RM21.8 billion to RM29.8 billion for year 2020 based on the performance in 1H2020.

Export revenue has increased by 40.30 percent and quantities have increased by 48 percent in the first six months of 2020 versus that of 2019. MARGMA projected that in the next six months, the 2H2020 export revenue to touch RM18 billion while the quantities estimated to reach 130 billion pieces and for the following year 2021, the Association estimates that annual export revenue to touch RM33.8 billion with quantities increasing to 270 billion pieces.

“It is worthy to note that for the last six months and going into the next few months, the gloves being exported are mainly for the healthcare sector, we have almost totally ignored the other sectors such as the food handlers, laboratories, dermatologists and even dentists, this group consume about 17 % of world demand,” said Denis.

“There is now a 25% to 35% increase in demand and usage, hence, post Covid-19, we will see demand expanding by at least 20% to 25% versus the usual 8% to 10% annual growth rate,” he added.

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