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 to307.2 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 is driven by increased demand in keymarkets 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 itsgrowth 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.
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 million in payments. In our 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.
MARGMA has continued to advocate and work towards more transparent and accessible standards that demonstrate commitment to labour rights. Moreover MARGMA is calling for all industry players to advance prioritising Environmental, Social, and Governance (ESG) standards to secure the industry's future. TheAssociation is also actively engaging collaboration with the Malaysian Rubber Council (MRC) and MalaysianRubber Board (MRB) to support members in improving their ESG scorecards and adopting sustainablepractices 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.
“Integrating sustainability into business practices becomes our industry key focus to address environmentalconcerns, reduce carbon footprint, and enhance brand reputation. This could involve initiatives such as eco-friendly manufacturing processes, waste reduction, and renewable energy adoption. Our associationmembers are fully committed and have made substantial progress towards compliance with the EU Deforestation Regulation (EUDR) and Corporate Sustainability Due Diligence Directive (CSDDD) of EuropeanUnion countries”, added Mr. Oon.
MARGMA is also working towards strengthening local industry ecosystem from upstream to downstream automation processes and embrace digitalization that could presents opportunities to address labourshortages and optimise efficiencies. Technologies like IoT and AI can enhance operational optimization anddecision-making, contributing to global competitiveness.
Exploring Accreditation:
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 CommitteeFor Standards & Quality (ACCSQ) has allowed the association to initiate accreditation for the Malaysian Rubber Glove Industry.
MARGMA is currently exploring the establishment of common standards for Malaysian- manufactured rubber gloves, including lifecycle assessments and labour condition applications. Collaboration with stakeholders andleveraging blockchain technologies can enhance traceability and certification within the supply chain.
As the rubber glove industry navigates through challenges and opportunities, MARGMA remains committedto promoting ethical, responsible, and sustainable practices, ensuring its position as a global leader in rubber glove manufacturing.