Margma confident global demand for rubber gloves will rebound in 2024 - MIDA | Malaysian Investment Development Authority
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Margma confident global demand for rubber gloves will rebound in 2024

Margma confident global demand for rubber gloves will rebound in 2024

19 Apr 2024

The Malaysian Rubber Glove Manufacturers Association (Margma) is optimistic that global demand for rubber gloves will rebound in 2024.

It sees demand surging to 450 billion pieces by 2027 despite the demand dropping to 307.2 billion pieces in 2023.

The association said the trajectory is driven by increased demand in key markets such as the United States, the European Union 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 the 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,” Margma said in a statement.

Margma president Oon Kim Hung said the global demand for rubber gloves has experienced fluctuations, yet 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,” he said.

He said 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,” he added.

Margma advocates for streamlining policies such as the Gas Supply Agreement (GSA) and the immediate removal of the export cess to enhance industry competitiveness.

He said for over two decades, the rubber glove industry has been burdened with a 0.2 per cent export cess, amounting to over RM500 million in payments.

“In our most prosperous years, this cess accounted for up to two per cent 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,” he added.

Margma is calling for all industry players to advance prioritising environmental, social, and governance (ESG) standards to secure the industry’s future.

At the same time, Oon said the association is actively engaging in collaboration with MRC and the Malaysian Rubber Board (MRB) to support members in improving their ESG scorecards and adopting sustainable practices as well as digitalisation in alignment with the Madani government’s call.

“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,” he continued.

Oon said the association 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. 

Source: Bernama