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Trying to Make Sense Bursa Investments

Author: Ben Tan   |   Latest post: Tue, 2 Mar 2021, 2:35 PM

 

Gloves and the United States - Something Funny

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Today I stumbled upon a letter signed by a number of US Senators from the Democratic Party to President Biden regarding utlizing to the fullest the authorities given to him under the Defense Production Act. You can read the letter here.

One thing that caught my eye in that letter was the following excerpt:

In addition, increasing the use of the DPA and other federal acquisition authorities to incentivize “Made in America” PPE and medical supplies will be a boon to patriotic American manufacturers that stepped up during the pandemic, and will make us significantly better prepared for future emergencies. President Trump has not used his DPA authority sufficiently enough to award adequate medical supply contracts for the nation’s needs. We must immediately do more to re-shore the most in-demand PPE, such as nitrile gloves, nearly all of which are manufactured in China. Ongoing negligence and chronic missteps have left us unprepared, and have created chaotic markets of severe price gouging and bidding wars that will make it more difficult for your incoming administration to ensure we have the supplies we need.

We all know about the tensions between the US and China, especially in the last few years. Thus, I truly hope that President Biden will get informed appropriately and promptly that the world's supplier of nitrile gloves is Malaysia, and not China. Malaysia controls approximately 80-85% of the entire world production of nitrile gloves.

On another note, President Biden has included in his Rescue Plan a US$30 billion (~RM120 billion) expenditure for protective gear, out of a total allocation of US$415 billion. You can read more about the plan here.

Important disclaimer: Any views expressed are for informational and discussion purposes only. None of this information is intended as, and must not be understood as, a source of advice. It is imperative that you always do your own research and that you make any decisions based on your personal situation and your own personal understanding.

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  3 people like this.
 
bullpiano Ben Tan,
Thank you for d info.
22/01/2021 9:50 PM
Goldberg Hi Ben Interesting news..thanks.

Supermax Corp Bhd has incorporated a new wholly-owned subsidiary, Maxter Healthcare Inc, in Delaware, US, to manufacture medical gloves and other personal protective equipment.

Maxter Healthcare's intended principal activities include "the building of a national headquarters in the US.

“The initial paid capital is part of the total allocation of US$550 million capital investment for Medical Glove Plant #18, when both Phase #1 & #2 are completed and commissioned.

A LONG TERM Agreement to supply USA with GLOVES & PPE's.is on the cards.

Supermax is going to capitalise on the 'Made in USA Gloves' that will be pushed by the Biden Administration.
24/01/2021 12:09 PM
ahbah Therefore, Supermax ... a strong buy now ?
24/01/2021 12:14 PM
Ben Tan bullpiano, Goldberg, ahbah, thank you for your comments.

Yes, it appears that Supermax will be in an ideal position to explore long-term contracts with the US government. The United States is by far the largest consumer of medical gloves in the world.
24/01/2021 1:07 PM


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