With Malaysia entering the endemic phase, there are many sectors re-opening. The Malaysian Rubber Glove Manufacturers Association is focusing on tapping the non-medical industries to drive future demand for non-medical grade gloves, considering the re-opening of borders would spur economic recovery.
With the great awareness about the importance of hygiene and contamination sparked from the pandemic, there are spill-over demand primarily in the travel/tourism, manufacturing and food & beverage sectors.
As the average selling prices (ASPs) of medical-grade gloves are inching closer to their pre-pandemic levels, there are still additional demand that can be generated from disposable non-medical grade gloves to mitigate the surge in raw material costs, manpower constraints, logistical challenges, and inflationary pressure.
Businesses from tattoo parlours, laboratories, childcare centres, amusement parks, last-mile logistics and even semiconductors/electronics can all contribute to the new cluster of demand.
The Plantation Industries and Commodities Minister has also stressed that the ministry would do its best to assist local manufacturers in securing new markets and ‘spreading their wings’ to non-medical sectors.
“We have constantly been working closely with our local industry players and by continuing to do so, there is no doubt that our local rubber glove industry will continue to thrive,” she said
With the tempering of the prices of glove stocks on Bursa Malaysia since the second half of 2021, the increased awareness & new use cases outside of the medical & healthcare industry can contribute to an opportunity for correction.
More M&A activity could also be in the horizon for interesting times ahead in this space.
~PublicInvest Research: “Despite the short-term headwind, the long-term outlook remains positive as glove consumption in the emerging markets is expected to increase notably, supported by the low per capita consumption, amid heightened hygiene awareness,”
Here are the glove related stocks listed on Bursa Malaysia with the market cap between RM100-500 million.
Bursa Malaysia Gloves Stocks |
Market Cap (RM mil) |
COMFORT |
393 |
CAREPLS |
323 |
HLT |
206 |
ESCERAM |
159 |
AT Systemization |
120 |
FLEXI |
119 |