THE Malaysian Rubber Glove Manufacturers Association (MARGMA) expects a rebound in global demand for rubber gloves in 2024 with an anticipated surge to 450 billion pieces by 2027.
In 2023, global demand for rubber gloves fell to 307.2 billion pieces compared to previous years, NST reported.
According to MARGMA, the expected trajectory will be driven by increased demand in key markets such as the United States, European Union and Japan, as well as the expanding usage of gloves in non-medical sectors post-COVID-19, including hotels, restaurants, cafés and semiconductor industries, among 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.
“The global demand for rubber gloves has experienced fluctuations, yet our commitment to delivering high quality gloves for the world remains steadfast,” MARGMA president Oon Kim Hung was quoted as saying by the English daily.
“We must prioritise fairness, transparency and sustainability in all our practices and in particular our pricing practices.”
Among the biggest challenges that persist include the low average selling prices (ASP) and oversupply issues.
However, Oon noted that this does not mean the Malaysian rubber glove industry players should bend on their ethical practices to counter stiff competition from regional players.
“We can look to other means of addressing competitiveness where weare seeking government support in various matters,” he remarked.
“We have appealed to the government for the immediate removal of the export cess, to enable the industry to overcome current challenges and enhance its global competitiveness in the post-pandemic era.”
MARGMA 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 mil in payments.
“In our most prosperous years, this cess accounted for up to 2.0% of our gross profit margin. However, given the current economic climate, with the ASP falling below production costs, the industry continues to incur losses on every exported container,” Oon stated.
MARGMA is calling for all industry players to advance prioritising environmental, social and governance (ESG) standards to secure the industry’s future.
The association is also actively engaging collaboration with MRC and Malaysian Rubber Board to support members in improving their ESG scorecards and adopting sustainable practices as well as digitalisation. – April 19, 2024
Main pic credit: Bloomberg
