Industry News

September 22, 2020 2020
Rubber gloves face decline

With the epidemic of Co-vid19, the demand for medical rubber gloves is increasing all over the world, thus attracting investors from different industries to cross the border into the rubber glove market.

 

In Malaysia, the largest producer of rubber gloves, there are real estate development, information technology, palm oil production and other industries into enterprises.


 Malaysia-listed companies that announced new entrants to the sector have invested a total of 900 million ringgit over the past two months, adding about 70 new rubber glove production lines.

 

But as vaccine development and the epidemic draw to a close, glove demand has fallen. These new rubber gloves into the production area of the initial investment costs are very high, and its production efficiency is difficult to compare with large enterprises. As a result, it is difficult to make the large profits expected.

 

It takes at least half a year to build a rubber glove production plant, and that new companies lacking professional production experience and sales networks are struggling to compete with big companies.

 

Malaysia's domestic production of rubber gloves will expand to 220bn units by 2020, up 20 per cent year-on-year and almost entirely for export, according to a July forecast by the Malaysian Rubber Glove Manufacturers Association (Margma) .


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