Latest news with #MARGMA
Barnama
19-07-2025
- Business
- Barnama
Rubber Market Seen Trading Mixed Next Week Amid Continued Caution
By K. Naveen Prabu KUALA LUMPUR, July 19 (Bernama) -- The Malaysian rubber market is expected to trade mixed next week amid continued caution over US tariffs, said the Malaysian Rubber Glove Manufacturers Association (MARGMA). Improved indicators from the United States (US) and China, alongside continued growth in the electric vehicle (EV) sector, could offer price support, it said. However, it cautioned that the full impact of US trade tariffs remains unclear, adding to overall market uncertainty. 'The overall market direction will largely depend on further developments surrounding US trade policy and the actual economic consequences of the tariffs,' MARGMA said. Industry expert Denis Low agrees that the market is likely to remain cautious and range-bound, but with a slight upward bias on demand-side optimism and supply-side constraints. 'The volatility of the exchange rate will also play a significant role, as it is increasingly driven by geopolitics rather than real economic fundamentals,' he added. Low said he expects a potential technical rebound in prices due to tighter supply arising from adverse weather conditions and regulatory pressure. 'There ought to be a technical rebound on rubber demand and prices, as supply is bound to be tight due mainly to the climate change phenomenon and the approaching EU Deforestation Regulation (EUDR) deadline,' he added. Low noted that compliance with the EUDR remains a challenge for many producers, with concerns over governance and readiness potentially affecting exports to Europe when enforcement begins in January 2025. On a week-to-week basis, the Malaysian Rubber Board's reference price for Standard Malaysian Rubber 20 (SMR 20) increased by 10 sen to 736.00 sen per kilogramme (kg), while latex in bulk went up by five sen to 571.50sen per kg. -- BERNAMA
The Star
10-07-2025
- Business
- The Star
Margma calls for tariff talks with US over glove duty hike
KUALA LUMPUR: The Malaysian Rubber Glove Manufacturers Association (MARGMA) has urged the government to promptly enter sectoral tariff negotiations with the United States (US) following Washington's decision to raise import duties on rubber gloves to 25 per cent from Aug 1, 2025. MARGMA president Oon Kim Hung said members were ready to support the government's efforts in engaging with the US to seek an exemption or, at minimum, maintain the existing 10 per cent tariff. "These gloves are not luxury items but essential medical supplies. A 25 per cent tariff will disrupt supply chains, drive up healthcare costs, and hinder patient safety,' he said in a statement today. The association said Malaysia's glove industry has long collaborated with the Malaysian Rubber Board (MRB) and the Ministry of Investment, Trade and Industry (MITI) to curb trans-shipment abuse and maintain its reputation for quality and responsible manufacturing. MARGMA called on Malaysia's trade negotiators to seek the same sector-specific consideration granted to other strategic industries, to ensure continued access for US healthcare providers to Malaysian-made gloves. It noted that Malaysia supplies nearly half of the US demand for natural rubber and nitrile gloves - critical healthcare products subject to strict US Food and Drug Administration (FDA) standards. With US demand projected by MITI to reach US$4.17 billion by 2030, MARGMA warned that higher tariffs could threaten patient care and drive up costs for hospitals and other healthcare providers.(US$1 = RM4.24). "Rather than undermining US manufacturing, Malaysian glove makers have demonstrated their commitment to the American market. For example, Supermax Corporation Bhd has invested US$350 million in a production facility in Texas, highlighting our industry's long-term dedication to supporting US healthcare,' Oon said. He added that MARGMA reaffirmed its commitment to a sustainable global supply and expressed hope for a tariff outcome that balanced fair trade with public health priorities in both countries. - Bernama
New Straits Times
10-07-2025
- Business
- New Straits Times
MARGMA urges swift tariff talks with US to safeguard medical glove supply
KUALA LUMPUR: The Malaysian Rubber Glove Manufacturers Association (MARGMA) is calling on the Malaysian government to act swiftly and enter sector-specific tariff negotiations with the United States following the announcement of a steep import duty hike to 25 per cent, effective 1 August 2025. Malaysia supplies nearly 50 per cent of the US market's natural rubber and nitrile gloves, which are essential medical products that must meet stringent FDA standards. According to the Ministry of Investment, Trade and Industry (MITI), US demand for gloves is projected to reach US$ 4.17 billion by 2030. MARGMA warned in a statement that the sudden tariff increase could undermine patient care and raise costs for hospitals and healthcare providers across the US. Far from threatening US manufacturing, Malaysian glove makers have demonstrated strong, long-term commitments to the American market. MARGMA highlighted Supermax Corporation Bhd's US$ 350 million production facility in Texas as clear proof of the industry's role in supporting US healthcare resilience. "MARGMA members stand ready to work with both governments to secure an exemption or at minimum maintain a 10 per cent tariff on rubber gloves", said Oon Kim Hung, the association's president. "These gloves are not luxury items but essential medical supplies. A 25 per cent tariff will disrupt supply chains, drive up healthcare costs and hinder patient safety." MARGMA noted that Malaysia's rubber glove industry works closely with the Malaysian Rubber Board (MRB) and MITI to uphold high standards and prevent trans-shipment abuse, protecting the industry's reputation for quality and ethical manufacturing. The association urged Malaysia's trade negotiators to push for the same sector-specific considerations granted to other critical industries, ensuring that US healthcare providers continue to have reliable, affordable access to world-class Malaysian gloves. MARGMA remains committed to a sustainable global supply chain and calls for a balanced tariff outcome that upholds fair trade while addressing the urgent public health needs of both nations.
New Straits Times
01-07-2025
- Business
- New Straits Times
KPK to hold engagement session with palm oil industry players on SST implementation
KUALA LUMPUR: The Ministry of Plantation and Commodities (KPK) will hold an engagement session with palm oil industry stakeholders on July 3, said Deputy Minister of Plantation and Commodities, Datuk Chan Foong Hin. He said the purpose of this meeting is to address various concerns regarding the implementation of the Sales and Service Tax (SST), especially about the interpretation of final products. "The session is important to ensure that all parties within the relevant sectors have a clearer understanding of the actual impact of SST on the supply chain and commodity production. "They have engaged in discussions with the Ministry of Finance, but some issues remain unresolved. Therefore, the ministry has decided to intervene and assist stakeholders in gaining a clearer understanding of the actual situation they are facing on the ground," Chan told Bernama after officiating the Food & Drinks Malaysia (FDM) 2025 exhibition here today. Chan said the confusion surrounding the interpretation of final products stems from situations where products from one factory are used as raw materials by another party to produce various goods available in the market. "The government has no intention of passing the cost on to consumers, but eventually it flows through the supply chain. So, we hope that SST is only imposed on the final product. "However, problems arise when a so-called final product for one party becomes the raw material for another. So how do we define it?" he said. Commenting on the Malaysian Rubber Glove Manufacturers Association's (MARGMA) proposal to postpone the implementation of the 5 per cent SST on natural rubber latex (NR) and nitrile butadiene rubber latex (NBR), Chan said no solution has been found yet, but the ministry welcomes any suggestions to help address the issue. MARGMA cautioned that the implementation of the SST would have a cascading impact on the entire domestic rubber industry ecosystem, including affecting the cash flow of small and medium enterprises (SMEs), slowing down innovation, and undermining Malaysia's position as a global glove manufacturing hub. Cocoa Industry Development In his speech at the event, Chan said the world is currently facing a global shortage of cocoa beans, and the growing demand for sustainable and traceable cocoa is reshaping the industry — a challenge that Malaysia is ready to take on. "We are now actively reviving cocoa plantation development, led by the Malaysian Cocoa Board, to boost land area and upstream bean production. "This initiative is already underway, and we invite investors, cooperatives, and plantation players — both domestic and international — to join this national drive," he said. Chan noted that Malaysia is also shifting its focus to premium cocoa varieties, including fine-flavour beans, single-origin selections, and organic options to meet niche global demands and position Malaysian chocolate at the high end of the value chain. -- BERNAMA
The Sun
01-07-2025
- Business
- The Sun
KPK to hold engagement session with palm oil industry players on SST implementation
KUALA LUMPUR: The Ministry of Plantation and Commodities (KPK) will hold an engagement session with palm oil industry stakeholders on July 3, said Deputy Minister of Plantation and Commodities, Datuk Chan Fong Hin. He said the purpose of this meeting is to address various concerns regarding the implementation of the Sales and Service Tax (SST), especially about the interpretation of final products. 'The session is important to ensure that all parties within the relevant sectors have a clearer understanding of the actual impact of SST on the supply chain and commodity production. 'They have engaged in discussions with the Ministry of Finance, but some issues remain unresolved. Therefore, the ministry has decided to intervene and assist stakeholders in gaining a clearer understanding of the actual situation they are facing on the ground,' Chan told Bernama after officiating the Food & Drinks Malaysia (FDM) 2025 exhibition here today. Chan said the confusion surrounding the interpretation of final products stems from situations where products from one factory are used as raw materials by another party to produce various goods available in the market. 'The government has no intention of passing the cost on to consumers, but eventually it flows through the supply chain. So, we hope that SST is only imposed on the final product. 'However, problems arise when a so-called final product for one party becomes the raw material for another. So how do we define it?' he said. Commenting on the Malaysian Rubber Glove Manufacturers Association's (MARGMA) proposal to postpone the implementation of the 5 per cent SST on natural rubber latex (NR) and nitrile butadiene rubber latex (NBR), Chan said no solution has been found yet, but the ministry welcomes any suggestions to help address the issue. MARGMA cautioned that the implementation of the SST would have a cascading impact on the entire domestic rubber industry ecosystem, including affecting the cash flow of small and medium enterprises (SMEs), slowing down innovation, and undermining Malaysia's position as a global glove manufacturing hub. Cocoa Industry Development In his speech at the event, Chan said the world is currently facing a global shortage of cocoa beans, and the growing demand for sustainable and traceable cocoa is reshaping the industry — a challenge that Malaysia is ready to take on. 'We are now actively reviving cocoa plantation development, led by the Malaysian Cocoa Board, to boost land area and upstream bean production. 'This initiative is already underway, and we invite investors, cooperatives, and plantation players — both domestic and international — to join this national drive,' he said. Chan noted that Malaysia is also shifting its focus to premium cocoa varieties, including fine-flavour beans, single-origin selections, and organic options to meet niche global demands and position Malaysian chocolate at the high end of the value chain.
