KUALA LUMPUR: The Malaysian Rubber Glove Manufacturers Association (Margma) expect a rebound in global demand for rubber gloves this year with an anticipated surge to 450 billion pieces by 2027.
In 2023, global demand for rubber gloves fell to 307.2 billion pieces compared to previous years.
Margma said the expected trajectory will be driven by increased demand in key markets such as the US, Eurooean Union 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 the surge in demand and stands ready to support the industry in achieving its growth 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 Oon Kim Hung.
Some of the biggest challenges that persist, include the low average selling prices (ASP) and oversupply issues.
But Oon said 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 weare seeking government support in various matters.
"We have appealed to the government for the immediate removal of the export cess, to enable the industry to overcome current challenges and enhance its global competitiveness in the post-pandemic era", said 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 per cent export cess, amounting to over RM500 million in payments.
"In our most prosperous years, this cess accounted for up to 2.0 per cent of our gross profit margin.
"However, given the current economic climate, with the ASP falling below production costs, the industry continues to incur losses on every exported container," he noted.
Margma is calling for all industry players to advance prioritising environmental, social and governance (ESG) standards to secure the industry's future.
It also actively engaging collaboration with the Malaysian Rubber Council and Malaysian Rubber Board to support members in improving their ESG scorecards and adopting sustainable practices as well as digitalisation.