MARGMA backs directive requiring full local manufacturing for glove exports

New Straits Times

06-05-2025

KUALA LUMPUR: The Malaysian Rubber Glove Manufacturers Association (MARGMA) has expressed strong support for the government's new directive mandating that only rubber gloves fully manufactured and processed in Malaysia will qualify for export under the country's certificate of origin.
The policy, announced by Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani, requires glove exporters to ensure that the entire manufacturing process takes place domestically to be eligible for certification from the Ministry of Investment, Trade and Industry (MITI).
Only products that are fully processed and produced domestically are permitted for export in line with Malaysia's commitment to international trade partners such as the United States.
Johari said the government will not allow gloves produced abroad to be brought into Malaysia solely for repackaging or relabelling before being re-exported.
MARGMA president Oon Kim Hung welcomed the decision, calling it both "timely and necessary" to safeguard the integrity of Malaysia's world-renowned glove industry.
Onn stressed that re-exporting finished gloves that are merely trans-shipped through Malaysian ports threatens to erode years of trust built with international buyers.
"By ensuring every critical manufacturing step takes place on Malaysian soil, we safeguard product quality, traceability and the stringent ESG standards demanded by global buyers," Oon said in a statement.
Rubber gloves remain a key pillar of the national economy. In 2024, Malaysia exported RM15.41 billion worth of rubber gloves—nearly half of the country's total rubber and rubber-based product exports.
Onn said the new directive is seen as a strategic move that delivers multiple benefits.
"First and foremost, it cements Malaysia's reputation for uncompromising quality and transparent supply chains, giving importers and healthcare providers clear assurance that gloves labelled as "Made in Malaysia" truly originate here.
"It also creates fair competition by preventing trans-shipment practices that disadvantage manufacturers who invest heavily in domestic facilities, technology and skilled Malaysian employees," Onn said.
"Thirdly, it underpins long-term industry sustainability by encouraging continued capital expenditure, R&D and technological upgrades that will keep Malaysia at the forefront of hand-protection innovation."
MARGMA also welcomed the minister's clarification that importing raw latex—especially from neighbouring Thailand—remains permissible. With local latex production meeting only about one-third of industry needs, imports are vital to ensuring uninterrupted glove production.
"Importing latex for processing here is entirely different from importing finished gloves. This policy strikes the right balance between safeguarding quality and ensuring supply security," Oon explained.
To support the directive's rollout, MARGMA said it will work closely with the Malaysian Rubber Board (MRB) to assist member companies with compliance, documentation, and audit readiness. It will also collaborate with enforcement bodies to prevent trade diversion and maintain the industry's international credibility.
"We urge every licensed exporter to observe both the spirit of this directive. Together with the Ministry and MRB, MARGMA is committed to preserving Malaysia's position as the trusted global source of high-quality, responsibly manufactured rubber gloves," Oon said.