With the United States (US) planning higher tariffs on foreign goods, including a potential 20% increase on imports and even tougher rates for Chinese products, Malaysian glove manufacturers stand to benefit.
For years, Chinese glove makers have been engaged in price wars, selling at near-cost prices to clear their stocks during the Covid-19 pandemic.
Experts believe this is a golden opportunity for Malaysian companies such as Top Glove, Hartalega, and Kossan Rubber Industries.
These companies have seen significant growth, with their share prices rising by 35% to 40% this year.
The weaker Malaysian ringgit against the US dollar has also played a role in boosting the glove industry.
Since most of its revenue comes from exports, glove makers are enjoying increased profits.
In addition, better management of production capacity has reduced the industry’s oversupply, further improving prospects.
While Malaysia benefits, China may shift its focus to non-tariff areas such as Europe or Japan.
However, Japan's strict quality standards make Malaysian companies remain the top choice.
