Malaysia gains US glove share as China hit by tariffs; Top Glove to benefit
[KUALA LUMPUR] Malaysia is poised to claim more than half of the US' rubber glove market this year, with its share expected to rise to 55 per cent – up from just over 47 per cent in 2024 – on the back of fresh US tariffs on Chinese-made gloves, said a top official.
Investment, Trade and Industry Minister Tengku Zafrul Aziz said on Tuesday (May 6) that the change is opening doors for Malaysian exporters, as US buyers pivot to tariff-free and cost-competitive suppliers.
Speaking at a quarterly briefing, he said that the country's glove industry – already the world's largest – stands to gain significantly from ongoing trade realignments. Washington's higher tariffs on Chinese products are also creating opportunities for other Malaysian exports, he added.
Malaysia exported RM15.4 billion (S$4.7 billion) worth of rubber gloves in 2024, and its industry players are 'competitive and ready to meet increased demand', the minister noted.
Its shipments to the US amounted to more than RM7.4 billion, making Malaysia one of the top five rubber exporters to the country. The US glove market is expected to reach nearly US$4.2 billion by 2030, said Malaysia's Ministry of Investment, Trade and Industry.
UOB Kay Hian estimates that as at December 2024, Chinese gloves made up 42 per cent of US medical glove imports, just behind Malaysia's 44 per cent share.
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With US glove consumption projected to climb to between 90 billion and 100 billion pieces in 2025 – up from 70 billion to 75 billion in 2023 – the gap is expected to widen in Malaysia's favour as tariffs push demand away from China.
According to an earlier report by The Straits Times, China-made gloves were priced around US$15 per 1,000-piece carton. Meanwhile, Malaysian gloves were sold at a range between US$17 and US$18 per carton.
On Apr 2, the US imposed a 24 per cent tariff targeting Malaysian goods, alongside a broader 10 percent duty on imports from all countries. While the Malaysia-specific tariff is under a 90-day suspension for negotiations, the global levy continues.
In contrast, tariffs on Chinese goods remained at 145 per cent.
Malaysia is home to some of the world's largest rubber glove manufacturers, including Top Glove, Hartalega, Kossan Rubber Industries, and Supermax Corp. Top Glove commands a substantial global market share, estimated at around 25 per cent.
Meanwhile, Tengku Zafrul said that a government support package for industries affected by global trade shifts and reciprocal tariffs was being finalised and would be announced by July.
'The priority now is to engage with affected companies to assess the supply chain impact,' he noted.
The package, announced in part by Prime Minister Anwar Ibrahim on Monday, includes an additional RM1 billion in guarantees under the Business Financing Guarantee Scheme to help small and medium-sized exporters access commercial loans.
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