KUALA LUMPUR: Malaysian rubber glove industry is now operating amid a challenging export environment, according to Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani.
Local companies were facing stiff competition, especially from countries that have access to cheaper energy, Johari added.
He disclosed this in his post on X after a meeting with the Malaysian Rubber Glove Manufacturers Association on measures to resolve critical issues towards ensuring the industry's ability to meet global challenges last Friday.
Also present during the discussion were Margma president Oon Kim Hung and its committee members.
Established on June 28, 1989, Margma is a non-profit industry association that extends a range of services to members comprising Malaysian rubber glove manufacturers and associated suppliers and supporting organisations.
Since its inception, Margma has been the official voice and advocate for the rubber glove industry in Malaysia.
Margma had projected a 12-15 per cent growth in the global demand for rubber gloves annually from 2023, following an estimated 19 per cent contraction to 399 billion pieces in 2022.
It believes the supply-demand equilibrium may return in six to nine months.
Kenanga Research believes the overcapacity situation will persist at least over the next 12 months, although it agrees that the demand for gloves would have risen by 15 per cent in 2023.
The firm, in a recent report, said the demand-supply situation in the rubber glove industry will only start to head towards equilibrium in 2025 when there is virtually no more new capacity coming onstream.
The global demand for gloves, meanwhile, will continue to rise by 15 per cent per annum underpinned by rising hygiene awareness, Kenanga Research added.