A year of mixed fortunes for rubber glove industry

KUALA LUMPUR, 22 JULY 2026 —

KUALA LUMPUR, Dec 6 -- Malaysia's rubber glove industry has experienced a year of mixed fortunes, with the country supplying 240 billion pieces of rubber gloves globally, meeting almost 70 per cent of the world's demand of 360 billion pieces in 2020. This made the industry a "star" performer amidst the COVID-19 pandemic, which has infected over 65 million people and claimed 1.5 million lives globally.

The rubber glove manufacturers have dominated the local bourse in 2020, with the combined market capitalization of the top four glove makers - Top Glove, Hartalega, Kossan Rubber, and Supermax - more than tripling from RM44.43 billion on February 28 to RM140.22 billion. According to Datuk Dr Nazri Khan, chief executive officer of Inter-Pacific Asset Management Sdn Bhd, the sector's transaction value exceeded RM40 billion, accounting for 13.5 per cent of all transactions across the FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBMKLCI). The top four glove makers' shares have been trading at a price-earnings ratio of between 51 times and over 100 times, with Hartalega and Supermax reaching 128 times and 100 times, respectively.

Top Glove, which commands a 26 per cent share of the global rubber glove market, has seen its shares soar by over 400 per cent, from RM1.55 on January 2, 2020, to RM26.24. The company conducted a share split on September 7, 2020, and its stock is now hovering around RM6.60. Top Glove recorded its best-ever quarterly net profit at RM1.29 billion in the fourth quarter ended August 31, 2020, which is almost 18 times the RM74.17 million it posted in the same quarter last year. The company's net profit for its financial year ended August 31, 2020, stood at RM1.86 billion, a 417 per cent increase from the previous year.

Despite the industry's success, it has also faced significant challenges, including the ban on Top Glove's subsidiaries by the United States Customs and Border Protection (US CBP) in July over forced labor concerns. The ban resulted in a 10 per cent decline in Top Glove's share price, and the company is still working to resolve the issue. Additionally, more than 4,000 of Top Glove's workers were infected with COVID-19, making it the largest contributor to Malaysia's COVID-19 cases. The company has been slapped with possible charges for alleged offenses under the Workers' Minimum Standards of Housing and Amenities Act 1990 (Act 446).

The industry is expected to extend its bullish sentiment in line with the deployment of the COVID-19 vaccine, which is set to boost the demand for rubber gloves by up to 18 billion pieces a year. Malaysia's market share is expected to improve to 68 per cent when the country supplies 280 billion pieces of rubber gloves next year, up from 67 per cent in 2020. The new players in the industry, such as Luster and Mah Sing, are expected to contribute around five to seven billion gloves in 2021 and 10 to 12 billion gloves in 2022.

According to research houses, the industry's growth is expected to continue, driven by the increasing demand for rubber gloves. MIDF Research has upgraded its rating of the glove sector to "positive" from "neutral", citing the sector's strong performance and growth prospects. The research house expects the market capitalization of Supermax and Kossan Rubber to remain above the RM20 billion mark, with Supermax being added to the FBM KLCI index stocks following the semi-annual review of the FTSE Bursa Malaysia Index Series on December 3.

In terms of the regional impact, the rubber glove industry is expected to continue playing a significant role in Malaysia's economy. The industry's growth is expected to create new job opportunities and contribute to the country's export earnings. The Malaysian Rubber Glove Manufacturers Association (MARGMA) has been working closely with the government to address the industry's challenges and ensure its continued growth. As the industry looks to the future, it is expected to remain a key player in the global rubber glove market, driven by its strong manufacturing capabilities and increasing demand for its products.

Looking ahead, the rubber glove industry is expected to continue its upward trend, driven by the ongoing demand for its products. With the deployment of the COVID-19 vaccine, the industry is expected to experience a further boost in demand, which is expected to drive growth and expansion. As the industry continues to evolve, it is likely to face new challenges and opportunities, and it will be important for companies to remain adaptable and innovative in order to remain competitive. With its strong manufacturing capabilities and increasing demand for its products, the Malaysian rubber glove industry is well-positioned to continue its growth and success in the years to come.

Related: Top Glove Corp Bhd · Bursa Malaysia · Datuk Dr Nazri Khan · Kuala Lumpur