The Malaysian Rubber Glove Manufacturers Association (MARGMA) forecasts that the total export value of rubber gloves will decline this year, even as output increases by 12–15%, due to a significant drop in average selling prices.
Higher Output, Lower Value
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“In the glove industry, higher export volumes do not necessarily translate into higher revenue or profit,” said Mr. Chan Wone Fu, CEO of MARGMA. “When average selling prices drop, companies will earn less even if they export more. For instance, last year glove volumes remained nearly unchanged, yet export earnings almost doubled because glove prices surged.”
He declined to provide an exact export value forecast for 2022, citing price volatility and global supply disruptions.
MARGMA estimates that the global glove supply will experience a 5–10% shortfall this year. China — the world’s second-largest producer of personal protective equipment (PPE) — continues to face disruptions from COVID-19 lockdowns and unstable energy supplies.
Malaysia Retains the Largest Market Share
According to MARGMA, global glove demand in 2022 is projected to reach 452 billion pieces — equivalent to about 14,333 gloves produced per second.
Malaysia is expected to maintain its leadership with 294 billion gloves, or 65% of global output, followed by China (20%), Thailand (10%), and Indonesia (3%).
This projection reflects continued optimism for the global glove industry. In 2021, MARGMA estimated global supply at 420 billion gloves, about 80 billion pieces short of global demand (500 billion).
Mr. Chan noted that stricter government health and safety regulations are a key factor supporting demand growth, especially in North America and Europe, which together account for 65% of Malaysia’s glove exports (35% to the U.S. and 30% to Europe).
“Rising awareness of healthcare, hygiene, and quality of life will continue to boost glove consumption. In Asia, population growth also provides advantages as more regulations require glove use in various industries,” Mr. Chan added.
Expanding Capacity Across Malaysia
As of January 2022, Malaysia operated 162 factories with 2,520 production lines, providing a total annual production capacity of 370 billion gloves, according to MARGMA data.
Among these, 75 factories are MARGMA members, operating at an average of 75% utilization capacity.
Labor Welfare and Cost Adjustments
Mr. Chan emphasized that MARGMA members are focusing on social compliance and worker welfare, particularly for migrant workers. Key priorities include:
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Paying off recruitment debts through recovery funds,
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Upgrading workers’ dormitories,
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And raising minimum wages to improve living standards.
MARGMA members have endorsed the new minimum wage of 1,500 Ringgit set by the Malaysian Government, up from 1,200 Ringgit — a 25% increase (approximately from USD 275.3 to USD 344.1).
The association estimates that this wage adjustment will raise total production costs by 1.42–2.75%, depending on the labor intensity of each factory.