Margma 2020

Malaysian Rubber Glove Manufacturers Association
MARGMA Industry Brief 2020

on the Rubber Glove Industry
Last updated on 16 July 2020
Page ▪ 1 / 42
Table of Content
1. Introduction to MARGMA
2. The Big Picture
3. Malaysian Rubber Gloves Manufacturing
4. Rubber Gloves Categories
5. Technological Development
6. Social Compliance Standards
7. Future Growth Drivers & Sustainability of Expansion
8. Current Issues & Challenges
Page ▪ 2 / 42
Introduction to MARGMA
Page ▪ 3 / 42
Roles of MARGMA
Liaison / Think tank

Lobby with on current
Ministries / issues
Agencies facing the
industry
Monitor and
Services
review
for
various
Members
Standards
Page ▪ 4 / 42
MARGMA Membership
as at December of 2012 to 2019
250
227
216
200 191
184
170
162 159
152
150 143 144
135
128
107
98
100 93 92
54 55 56 56 57 57
50 52
50
0
Dec 2012 Dec 2013 Dec 2014 Dec 2015 Dec 2016 Dec 2017 Dec 2018 Dec 2019
Ordinary Associate Total
Page ▪ 5 / 42
We have 57 Ordinary Members (77 if including subsidiaries of our members)
Our Ordinary Members comprise of bona fide rubber glove manufacturers in

Malaysia. Here are most of our ordinary members:
Concept Rubber
Products Sdn Bhd
Last REVISED on 10 July 2020 Page ▪ 6 / 42

We have 170 Associate Members
Our Associate Members comprise of companies associated with the rubber
glove manufacturing industry. Here are some of our members:
Chemicals Services & Software
Other latex Products
Lubricants
KEMTECH SPECIALTY SDN BHD
Industrial Equipment & Machinery Glove Traders / Buyers /

Importers /Overseas Manufacturers
Raw Materials - Latex Packaging
Page ▪ 7 / 42
The Big Picture
Page ▪ 8 / 42
Projection for 2020
Estimated Global Demand:
330,000,000,000
(330 billion gloves )
(10,500 gloves used every second)
Expected annual growth:

20%
Projected Export Revenue:

RM21.8 bil or USD5.1bil
(Revised on 4 June 2020)
(60 to 67% of World Market Share)
With impact of
COVID-19 Epidemic. Last REVISED on 4 June 2020
Page ▪ 9 / 42
Global Market Share
(estimation for year 2020)
Global Demand estimated at

330 billion gloves for 2020
67%
Estimated
220 billion gloves Thailand
will be produced Indonesia
China
by Malaysia 18%
3%
There are more than 150 rubber 10%
glove manufacturers worldwide.
(Estimated market share.)
Last REVISED on 4 June 2020
Page ▪ 10 / 42
Malaysian Rubber Gloves

Manufacturing
Page ▪ 11 / 42
Top 10 & Listed Rubber Glove Manufacturers in Malaysia
by Installed Production Capacity (2019)
Publicly Listed Privately Own
Page ▪ 12 / 42
Installed Rubber Glove Production Capacity (2019)
Privately-
Owned No of Ordinary Members
25% 57
Total Factories
127
Installed Production
Lines
2,086
Installed Production
Publicly- Capacity
Listed
75% 278 bil
Installed Production Capacity of Publicly-Listed and Non- (Utilization rate at 75% and above)
listed Glove Manufacturers Companies in Malaysia
Page ▪ 13 / 42
Rubber Gloves Export from Malaysia (1991 to 2028)
Actual Export Value (RM Bil) Projected Export Value (RM Bil) Linear (Actual Export Value (RM Bil))
50.00
45.00
Export Value (RM Bil)
40.00
35.00 Reinvestment Allowance required
to further drive rapid growth in the
30.00
Malaysian Rubber Glove Industry. 10% y-o-y
25.00
growth
20.00
15.00
10.00
5.00
-
1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030
Year
Early Years 1 Early Years 2 Growth 1 Growth 2

– Pioneer – Survival – Production Capacity – Product Innovation &
Production Technology
The start of the Overcrowded Rapid Growth supported
industry supported by market place by Reinvestment New phase of growth to be
AIDS Scare. coupled with Asian Allowance and public- supported by intensive R&D and
Financial Crisis led listing of rubber glove product innovation.
More than 600 to closing down of manufacturers.
licenses were issued many factories.
by MITI.
More than 300

factories were
established. Page ▪ 14 / 42
Malaysia’s Total Glove Exports
(Jan – Mar 2019 & 2020)
Malaysia’s Export Value Value Value Quantity Quantity

To the World (RM Million) Change (USD Million) (Million Pairs) Change
(Jan - Mar) 2019 2020 % Change 2019 2020 2019 2020 % Change
Natural Rubber
1,472 1,756 + 19.30% 345 411 7,272 7,868 + 8.20%
Gloves
Synthetic Rubber
2,728 3,128 + 14.70% 638 732 12,529 14,698 + 17.30%
Gloves
TOTAL 4,200 4,884 + 16.30% 983 1,143 19,801 22,566 + 14.00%
Source: Provisional data from MREPC, 12 June 2020
Note: The quantity of gloves estimated may reach as high as 27.5 bil pairs or 55 bil gloves if a lighter
average weight per glove is used to convert total weight of gloves exported to pieces of gloves. The
lightest medical gloves is 3.0 grams while the heaviest medical gloves can reach 4.5 grams.
Page ▪ 15 / 42
Malaysia’s Top 5 Export Markets in Q1 2020
(USA, Germany, Japan, China & UK)
Period Jan – Mar 2020 Jan – Mar 2019

Total export Value (RM mil) 4,884 100% 4,200 100%
USA 1,773 36.3% 1,434 34.1%
Germany 311 6.4% 272 6.5%
Japan 296 6.1% 58.2% 289 6.9% 54.4%
China 293 6.0% 114 2.7%
UK 170 3.5% 177 4.2%
Source: Provisional data from MREPC, 12 June 2020

Page ▪ 16 / 42
Rubber Gloves Categories
Page ▪ 17 / 42
Categorize by Applications
Rubber Gloves
Medical Non-Medical
Examination Food Processing
Industrial
Surgical
Cleanroom
High Risks
Tattoo
Radiation Household
Chemotherapy Electrician
Page ▪ 18 / 42
Categorize by Materials
Rubber Gloves
Natural Synthetic
Hevea Brasiliensis Nitrile (NBR)
Cast Polyethylene (CPE)
Guayule
Vinyl (PVC)
Kazakh Dandelion
Neoprene
Eucommia ulmoides (杜仲)

Polyisoprene
…and other plant sources of rubber. Polyurethane

Page ▪ 19 / 42
Categorize by Processes
Rubber Gloves
Powdered Powder-Free
Chlorinated
Polymer-coated
Length Moisturizer coated
Multiple-Dipping Aloe vera coated
Blended Anti-microbial
Page ▪ 20 / 42
Volatility of Latex Price
NBR gloves became

technically and
commercially feasible
in late 2000s.
First NBR gloves

were made in
mid 1990s.
NBR gloves conquered Two-thirds of the

50% of market share gloves made are
by mid 2010s. NBR gloves by 2020.
Page ▪ 21 / 42
Average Selling Price of Rubber Gloves
0.10
USD 45.60 per carton of
1,000 gloves in 2011.
0.09
0.08
USD per pair
0.07
0.06
0.05
0.04
0.03
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 YTD
Mar'20
Year
Nitrile Gloves NR Powder-Free Gloves NR - Powdered Gloves
Page ▪ 22 / 42
Technological Development
Page ▪ 23 / 42
Increased Productivity in Gloves Manufacturing
Modernization and automation lead to quantum leaps in productivity in some of
the MOST ADVANCED factories.
Number of Workers to Produce

1 million Gloves
12.0
9.7
10.0
8.0
6.3
6.0
4.0 2.7
1.7 1.5
2.0
-
2008 2012 2016 2020 2024 Year
No of Worker (Reported) No of Worker (Projection)
Source: Malaysian Rubber Glove Manufacturers Association (MARGMA)
Page ▪ 24 / 42
Advancement in Glove Production Technology
1992 2007
Malaysian Built Lines Further improvement
produce 6,000 resulting in 30,000
gloves/hour gloves/hour
42,000 to 45,000
36,000
30,000
20,000
6,000
3,000
1988 1992 2002 2007 2010 2013
1988 2002 2010 2013

Imported lines from Major Innovation using Improved speed Achieved
Taiwan produce about double formers resulting to 36,000 breakthrough speed
3,000 gloves/hour in production of gloves/hour between 42,000 and
20,000 gloves/hour 45,000 gloves/hour
Page ▪ 25 / 42
Social Compliance Standards
Page ▪ 26 / 42
Multiple Social Compliance Standards
Page ▪ 27 / 42
Improving Social Compliance in the Rubber Glove Industry
MARGMA called for Extra-ordinary General Meeting on
9 November 2019 and passed the following resolutions:
1) Members to adopt Code of Conduct on Social

Compliance (developed by MREPC).
2) Members to join SEDEX and participate in the

Malaysian Rubber Glove SMETA Audit Programme for social compliance
Manufacturers Association
within 12 months.
• Industry Driver
• Awareness promotion
3) Members to adopt Zero Cost Policy for the

recruitment of foreign workers with immediate
effect.
Page ▪ 28 / 42
Future Growth Drivers and

Sustainability of Expansion
Page ▪ 29 / 42
The Future for Rubber Gloves
Drivers
Growing for
Demand Advanced
Future Automation
Growth
Wider Enhanced
Applications Productivity
Page ▪ 30 / 42
Drivers for Growth
Russia
▪ Regulatory Requirements
▪ Healthcare Awareness
▪ Population Growth
Europe
North America ▪ Regulatory Requirements
▪ Regulatory Requirements ▪ Healthcare Awareness Asia
▪ Healthcare Awareness ▪ Aging Population
▪ Growing Affluence
Africa ▪ Population Growth
▪ Population Growth
South America
▪ Regulatory Requirements Oceania
▪ Healthcare Awareness ▪ Regulatory Requirements
▪ Population Growth ▪ Healthcare Awareness
Page ▪ 31 / 42
Epidemic and Pandemic
The current Malaysian Rubber Glove Industry was driven by the emergence of
HIV in 1986. Every subsequent epidemic and pandemic pushes the awareness
on the importance of rubber gloves further up and increases in tandem the
usage of gloves as well.
Human Immunodeficiency Nipah Virus Severe Acute Respiratory

Virus (HIV) (NiV) Syndrome (SARS) Virus
https://time.com/ http://revistabionatura.com/ https://www.calwater.com/
Middle East Respiratory Coronavirus disease 2019

Ebola Virus
Syndrome (MERS) Virus (COVID-19)
https://www.cdc.gov/ https://www.turbosquid.com/ https://en.wikipedia.org/
Page ▪ 32 / 42
Ever Increasing Applications for Rubber Gloves
Original and major

market segment
• Medical & Dental • Industrial – Janitorial/Mechanical
• Pharmaceutical & Laboratory • Tattooing procedures
• Food Industry – Processing & Service • Household
• Electronics – Clean Room • Specialized medical applications
Page ▪ 33 / 42
Support from Suppliers and Service Providers
latex IT
chemicals banks
testing
packaging
printing
machinery
logistics
construction
maintenance
electrical sterilization
tooling pigment
brush former
The support from our suppliers and service providers

are essential for the continuous growth and success
of the Rubber Glove Industry.
Photo credit: http://maxpixel.freegreatpicture.com/
Page ▪ 34 / 42
R&D on Glove Properties
Healthcare
Associated
Properties Infection
of Gloves (HAI)
Anti-
microbial
gloves
❑ Lowering healthcare associated infection

Anti-allergy (HAI) for medical glove users.
▪ Sweat
▪ Touch
▪ Breakage / pin-hole
❑ Appropriate blends or layering to enhance permeation, penetration and

Donnability breakthrough properties with regards to chemicals and cytotoxin drugs
❑ Coatings to enhance NR contact properties (lignin filled composite)
❑ Allergy Type I - addition of anti-allergic component

❑ Allergy Type IV Allergy Free gloves
Page ▪ 35 / 42
Current Issues and Challenges
Page ▪ 36 / 42
Challenges in the Rubber Glove Industry
Latex Supply
Manpower
Energy Manpower
Energy
Automation Water Supply
Latex Supply
Challenges
R&D Environment
Water Supply
Regulations
Waste
are always the challenges
& Trade
Management
Barriers
for the industry.
Tax & Tariffs Logistics
MARGMA is working with the Government to push

for further automation to overcome labour shortage.
Page ▪ 37 / 42
Our Current Challenges
Acute
Shortage
of Foreign
Shortage Workers
of Skilled
Volatility Local
Shortage
of Workers
Severity Currency
of Water
Regulations
Shortage Energy & Trade
of NR Barriers
Latex Price
Hike
Mild
Not urgent Immediate

Urgency
The Industry is constantly engaging the Government
to manage the challenges. The industry has the expertise
and is experienced enough to overcome such challenges.
Last REVISED on 30 June 2020
Page ▪ 38 / 42
Additional Manpower Required
We estimate that to meet the increased global demand, we need to hire an
additional 25,000 workers urgently as summarised below:
Estimated Current Additional

Nationality % %
Manpower Manpower
Malaysians 28,000 39% 10,000 40%
Foreigners 43,800 61% 15,000 60%
Total 71,800 100% 25,000 100%

Estimated in June 2020
Automation of all segments of the production cycle

will further erode the dependence on manual labour.
19 Feb 2016 : Freeze on all FW Intake 22 June 2020 : Freeze on all FW Intake
Suspension to remain in place while Government No foreign workers intake until end of 2020
review 2-tier levy programme and Rehiring programme. as announced by MoHR Minister.
Page ▪ 39 / 42
Energy Cost
Gas prices ought to

come down in 2021 due
to much lower
international gas prices.
Filename: <Natural Gas Price History (2014 to 2019).pptx>

Page ▪ 40 / 42
World’s LARGEST Rubber Glove Conference & Exhibition
at the Kuala Lumpur Convention Centre
The 10th IRGCE will be held from 11th to 13th of

August 2021 at Kuala Lumpur Convention Centre.
Page ▪ 41 / 42
Thank you!
Units 1313 & 1311, 13th Floor, Block A, (Lift Lobby 4),
Damansara Intan, 1 Jalan SS20/27,
47400 Petaling Jaya, Selangor, Malaysia.
Tel: +603-7727 3197 Fax: +603-7727 3191
Website: www.margma.com.my
Email: contact@margma.com.my
Page ▪ 42 / 42

Margma 2020

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Margma 2020

Uploaded by

Copyright:

Available Formats

Malaysian Rubber Glove Manufacturers Association

MARGMA Industry Brief 2020

Liaison / Think tank

Our Ordinary Members comprise of bona fide rubber glove manufacturers in

Last REVISED on 10 July 2020 Page ▪ 6 / 42

Other latex Products

Industrial Equipment & Machinery Glove Traders / Buyers /

Raw Materials - Latex Packaging

The Big Picture

(10,500 gloves used every second)

Expected annual growth:

Projected Export Revenue:

Global Demand estimated at

Malaysian Rubber Gloves

Publicly Listed Privately Own

Early Years 1 Early Years 2 Growth 1 Growth 2

More than 300

Malaysia’s Export Value Value Value Quantity Quantity

TOTAL 4,200 4,884 + 16.30% 983 1,143 19,801 22,566 + 14.00%

Source: Provisional data from MREPC, 12 June 2020

Period Jan – Mar 2020 Jan – Mar 2019

USA 1,773 36.3% 1,434 34.1%

Germany 311 6.4% 272 6.5%

Japan 296 6.1% 58.2% 289 6.9% 54.4%

China 293 6.0% 114 2.7%

UK 170 3.5% 177 4.2%

Source: Provisional data from MREPC, 12 June 2020

Rubber Gloves Categories

Examination Food Processing

Hevea Brasiliensis Nitrile (NBR)

Cast Polyethylene (CPE)

Eucommia ulmoides (杜仲)

…and other plant sources of rubber. Polyurethane

Length Moisturizer coated

Multiple-Dipping Aloe vera coated

NBR gloves became

First NBR gloves

NBR gloves conquered Two-thirds of the

Number of Workers to Produce

1988 1992 2002 2007 2010 2013

1988 2002 2010 2013

Social Compliance Standards

1) Members to adopt Code of Conduct on Social

2) Members to join SEDEX and participate in the

3) Members to adopt Zero Cost Policy for the

Future Growth Drivers and

Human Immunodeficiency Nipah Virus Severe Acute Respiratory

Middle East Respiratory Coronavirus disease 2019

Original and major

• Pharmaceutical & Laboratory • Tattooing procedures

• Food Industry – Processing & Service • Household

• Electronics – Clean Room • Specialized medical applications

The support from our suppliers and service providers

❑ Lowering healthcare associated infection

❑ Appropriate blends or layering to enhance permeation, penetration and

❑ Coatings to enhance NR contact properties (lignin filled composite)

❑ Allergy Type I - addition of anti-allergic component

Current Issues and Challenges

MARGMA is working with the Government to push

Not urgent Immediate

Estimated Current Additional

Foreigners 43,800 61% 15,000 60%