The announcement by the United States Trade Representative (USTR) regarding higher tariffs on Chinese medical and surgical glove products has boosted the activity of the Malaysian rubber glove industry.
Starting in January 2024, tariffs on Chinese gloves will increase from 7.5% to 50%, with a further increase to 100% by 2026.
This has led to a sharp rise in the stock of Malaysian glove manufacturers.
Companies such as Hartalega, Top Glove, Careplus, and Kossan saw their share prices rise significantly.
Hartalega, for example, rose by 26.45%, while Top Glove, the world's largest glove manufacturer, gained 18.03%.
Analysts from Hong Leong Investment Bank (HLIB) and Kenanga Research expect this development to increase demand for Malaysian gloves in America driving volumes and prices up in late 2024 and 2025.
Despite the positive outlook, experts warn that the long-term impact, especially after 2026, may be limited due to potential currency fluctuations.
However, market sentiment has changed, and the gloves sector is now expected to gain attention by analysts, with Hartalega and Kossan expected to outperform.
