The Malaysian Rubber Glove Manufacturers Association (MARGMA) President, Dr. S. Supramaniam, stated that the depletion of global glove inventories will soon restore a natural balance between production capacity and global demand. However, he noted that synthetic and natural rubber substitutes are expected to gain wider acceptance among consumers.
In 2021, glove exports contributed 3.78% to Malaysia’s GDP, underlining the sector’s vital role in the country’s economy.
High Production Capacity and Growing Automation
Dr. Supramaniam highlighted that Malaysia’s glove industry is advancing towards a circular economy, emphasizing eco-friendly, biodegradable materials and additives.
In the previous year, Malaysia supplied 256 billion gloves to 195 countries, accounting for around 65% of global market demand. “In 2021, the Malaysian rubber glove industry contributed RM 54.81 billion (3.78% of GDP) due to exceptional demand and high average selling prices (ASP) during the pandemic. This year, as markets stabilize, export values are expected to reach around RM 23 billion, or roughly 1.2% of Malaysia’s 2022 GDP,” he added.
Global demand for rubber gloves in 2022 is projected to exceed 399 billion units, with annual growth of 10–12%. Malaysia’s manufacturers now operate at advanced production speeds of 42,000–45,000 gloves per hour, compared to just 3,000 per hour 12 years ago.
“Back in 2008, we needed 9.7 workers to produce one million gloves per month. Thanks to continuous investment in automation, by 2024, we expect this to drop to just 1.5 workers per million gloves per month,” said Dr. Supramaniam.
Malaysia’s Export Strength and Upstream Integration
Minister of Plantation Industries and Commodities Datuk Zuraida Kamaruddin noted that Malaysia’s glove exports surged during the pandemic, though global demand has since moderated.
“Many countries have invited Malaysian glove manufacturers to establish factories locally, as the trend toward hygiene and health awareness continues,” she said at the 10th International Rubber Conference and Glove Exhibition.
She also encouraged major corporations like Hartalega Holdings Bhd to explore upstream investment opportunities to build an integrated supply ecosystem.
“Our industry relies heavily on smallholders, who supply 90% of the raw materials. We must manage these plantations in a more structured and sustainable way to secure the future of the industry,” she emphasized.
Top Glove Expected to Recover in the Long Term
Malaysia’s largest glove producer, Top Glove, is projected to recover over the long term. According to Valuevest Ventures, the company has paid RM 7.84 billion in dividends since 2001, reflecting its solid financial foundation.
Top Glove’s sales to the United States rose 8% in Q3 FY2022 compared to the previous quarter, with further growth potential expected. Initially, the company aimed to double annual production capacity from 100 billion gloves in 2021 to 201 billion by 2025. However, it has scaled down expansion by 22%—to 156 billion gloves annually—to prevent market oversupply.
Top Glove’s total revenue declined from RM 16.36 billion in 2021 to RM 4.5 billion in the first nine months of 2022, but its operating margin and net profit levels remain comparable to pre-pandemic averages, showing resilience amid global adjustments.