The Malaysian Rubber Glove Manufacturers Association (MARGMA) today stated that the Malaysian Rubber Glove Industry has demonstrated resilience and adaptability amidst challenging global dynamics. Despite a downturn in 2023, with global demand for rubber gloves dropping to 307.2 billion pieces compared to previous years, there is optimism for a rebound in 2024, with an anticipated surge to approximately 450 billion pieces by 2027.
This trajectory it said is driven by increased demand in key markets such as the US, EU, and Japan, as well as the expanding usage of gloves in non-medical sectors post-COVID-19, including hotels, restaurants, cafes, semiconductor industries, and others. The Malaysian Rubber Council (MRC) expects this surge 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 global demand for rubber gloves has experienced fluctuations, yet our commitment to delivering high quality gloves for the world remains steadfast. We must prioritise fairness, transparency, and sustainability in all our practices and in particular our pricing practices”, said MARGMA President, Mr. Oon Kim Hung.
Some of the biggest challenges that persist, include the low Average Selling Prices (ASP) and oversupply issues 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. “We can look to other means of addressing competitiveness where we are seeking Government support in various matters. We have appealed to the Government for the immediate removal of this Export Cess, to enable the industry to overcome current challenges and enhance its global competitiveness in the post- pandemic era”, highlighted Mr Oon.
Moving ahead, the association advocates for streamlining policies such as the Gas Supply Agreement (GSA) and the immediate removal of the Export Cess to enhance industry competitiveness. For over two decades, the rubber glove industry has been burdened with a 0.2% Export Cess, amounting to over RM500 million in payments. In the most prosperous years, this cess accounted for up to 2% of our gross profit margin. However, given the current economic climate, with the Average Selling Price (ASP) falling below production costs, the industry continues to incur losses on every exported container.
In terms if sustainability MARGMA said “In collaborating with MRC, MRB, and the Malaysian Productivity Corporation (MPC) to implement the ‘Malaysia Sustainable Natural Rubber’ initiatives, we should also ensure that it includes ‘Green Gloves’ and other eco-friendly glove options. These efforts underscore our commitment to sustainable practices and environmental stewardship.
It also said its members are fully committed and have made substantial progress towards compliance with the EU Deforestation Regulation (EUDR) and Corporate Sustainability Due Diligence Directive (CSDDD) of European Union countries.
MARGMA’s active participation with and contribution to the global Standards bodies of ISO International, ASTM International, European Committee for Standardization (EU-CEN) and ASEAN Consultative Committee For Standards & Quality (ACCSQ) has allowed the association to initiate accreditation for the Malaysian Rubber Glove Industry.
