Political factor

Political stability is critical for businesses because it affects customer and investor
confidence, and so has a significant effect on the economy. Changing policies with a new
government appears to be a common phenomenon in every country. Changes of policies and
regulations will occur as a result of the country's elections. When the government is re-
elected, the policies of the government are likely to change as well. Due to the surrounding
uncertainty, frequent policy changes have an impact on corporate performance and cause
decision-making more difficult. Both Supermax and Top Glove must prepare for the
possibility of changing government, so that they can fulfill the standard in the healthcare
industry of the new government.

Economic factor

The demand and supply of labour determine the supply of skilled workforce for a company.
For Supermax and Top Glove to maintain a competitive edge, timely availability of skilled
employee is critical. Since the outbreak of the pandemic, our government implemented a
migrant labor prohibition. In 2019, the glove business has been experiencing a significant
shortage of 25,000 workers. According to the Malaysian Rubber Glove Manufacturers
Association (MARGMA), they have the production capacity, but not enough workers to fully
utilize it. As a result, the government announced earlier this month that it had a special
approval to bring in 32,000 foreign workers for the plantation industry (Lee 2021). Hence,
the rubber glove industry's productivity is predicted to rise this year.