Touching on rubber gloves, Malaysian Rubber Glove Manufacturers Association (Margma) president Oon Kim Hung said the industry is emerging from a challenging period marked by overstocking and plummeting average selling prices (ASP).
“However, the oversupply situation is easing, with ASP showing signs of improvement. Malaysian exports stand to benefit from the US tariff on Chinese goods, though competition from China remains intense. The sector’s direction will also hinge on geopolitical developments in the Middle East and the US economic policies under the Trump administration,” he said.
Oon predicts the demand for rubber gloves will pick up by late February 2025 as US orders gain momentum.
He noted, however that cost pressures, will remain a concern for manufacturers in 2025, driven by fluctuating raw material prices influenced by the recovery of China’s economy and the delayed implementation of the EU Deforestation Regulation (EUDR).
“While the EUDR delay offers temporary relief, its eventual enforcement could push demand for sustainable rubber and impact material costs,” he said.
Oon said Malaysian manufacturers are well-prepared to manage such challenges, barring unexpected spikes in raw material prices. “The government’s incentives for digital transformation and green technologies are also critical to fostering industry growth, provided policies are implemented predictably and with adequate consultation with stakeholders.”
He said labour shortages continue to pose challenges despite the rubber glove industry achieving high levels of automation, with 85% of production lines now automated. “Manufacturers have reduced workforce needs drastically, from 9.7 workers per million gloves in 2008 to just 2.0 workers now.”
The industry’s investments in robotics and AI to optimise production processes further, ensuring resilience in the face of workforce constraints, Oon said.
Source: The Sun
