Rubber gloves export rose to RM15B for Jan-July Period: MITI - MIDA | Malaysian Investment Development Authority
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Rubber gloves export rose to RM15B for Jan-July Period: MITI

Rubber gloves export rose to RM15B for Jan-July Period: MITI

09 Sep 2020

Malaysia’s rubber gloves exports grew by 50.1 per cent to RM15.06 billion for the January-July 2020 period from RM10.03 billion in the same period last year, said the Ministry of International Trade and Industry.

Deputy Minister Senator Datuk Lim Ban Hong said the growth was driven by higher demand and government’s efforts to assist the rubber gloves industry.

“Global demand for rubber gloves is estimated to be at 330 billion units for 2020, and Malaysia’s production for the export market is estimated at 220 billion units, which is 67 per cent of the global demand market.

“This is a good opportunity for our country to strengthen the brand and confidence towards Malaysian products internationally,” he told the Dewan Negara today.

He said this in reply to a question from Senator Idris Ahmad (PAS) on the government’s efforts and action taken to leverage the opportunities posed by the booming rubber gloves manufacturing and production industry since the outbreak of Covid-19.

Lim said the government has encouraged rubber glove industry players to reinvest or make additional investments to leverage the opportunities.

“Under the National Economic Recovery Plan (Penjana), the government has introduced the Special Reinvestment Allowance Incentive Scheme (Special RA) that aims to encourage reinvestments and additional investments.

“The scheme is applicable for assessment years 2020-2022,” he said.

Additionally, he said the government is also encouraging the incorporation of automation and high technology in the manufacturing sector, including the rubber gloves industry, by offering the Automation Capital Allowance incentive for the labour intensive manufacturing sector.

“Considering that the rubber gloves industry has grown exponentially since the outbreak of Covid-19 and there is a need to set up factories at a faster rate, the government through Penjana has introduced an initiative where companies can obtain Manufacturer Licence approval within 48 hours by applying online through Malaysian Investment Development Authority’s (MIDA) e-Manufacturing License platform,” said Lim.

He said the government has also established the Project Acceleration and Coordination Unit (PACU) under MIDA to offer holistic facilitation and ensure smooth implementation of approved projects.

Lim said MITI through its agency, Malaysia External Trade Development Corporation (MATRADE), has assisted local companies, including rubber gloves manufacturing companies, via virtual business matching sessions between Malaysian exporters and overseas buyers.

MATRADE also welcomes Malaysian companies’ virtual participation in the MyAPEC 2020 exhibition from Sept 1- Dec 31, 2020 that provides them with the opportunity to pitch their business to overseas buyers.

Additionally, MATRADE is also organising the hybrid eNational Export Day from Sept 8-10, 2020 to discuss business opportunities arising from the Covid-19 crisis.

The agency has also expanded the Market Development Grant (MDG) to cover the cost of Malaysian companies’ participation in virtual trade fairs locally and overseas, as well as 30 per cent of logistic costs, including transportation and warehousing for the delivery of products overseas.

Source: Bernama Posted on : 09 September 2020