Malaysia eyes larger share in US glove market

New Straits Times

07-05-2025

KUALA LUMPUR: Malaysia is poised to expand its foothold in the US rubber glove market despite recent trade challenges, including a 10 per cent tariff hike and reciprocal measures by the United States.
Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz said Malaysia's glove exports to the US are expected to grow, with market share projected to rise from the current 47 per cent to 55 per cent.
Speaking during the Ministry's first-quarter 2025 performance briefing, Tengku Zafrul highlighted that Malaysia remains competitively positioned, particularly as producers from competing countries like China face steeper tariffs.
Rubber products are among Malaysia's top five exports to the US, contributing RM7.41 billion or 3.7 per cent of total exports to the country. MITI's latest report estimates that the US rubber glove market will grow to US$4.17 billion by 2030, presenting significant opportunities for Malaysian manufacturers.
Meanwhile, 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 US.
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.
He said 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.
Oon added that the directive reinforces Malaysia's reputation for transparency and excellence, levels the playing field for domestic manufacturers, and encourages continued investment in technology, research, and innovation.
"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.
Onn also welcomed the minister's clarification that importing raw latex—particularly from Thailand—remains permitted, given that domestic supply only covers about one-third of the industry's needs.
"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.