Malaysia Glove Makers Say Virus Curbs to Hit Global Supplies
Malaysian Glove Makers Say Virus Curbs May Hurt Global Supplies
(Bloomberg) -- Malaysia’s rubber glove makers appealed to the government to allow factories in Selangor state to still operate amid tighter movement curbs that took effect on Saturday to prevent a disruption in global supplies of the protective gear.
The Malaysian Rubber Glove Manufacturers Association is seeking a meeting with the trade ministry as 58% of all gloves produced in the country are sourced from plants in Selangor, Margma President Supramaniam Shanmugam said in a statement on Sunday.
The government imposed stricter measures in Selangor, the most industrialized state, and in the capital Kuala Lumpur, which are among Malaysia’s worst-affected regions despite a nationwide lockdown. Selangor contributed about half the new daily Covid cases on Saturday.
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“Global customers of our manufacturers have been calling with great concern on the shortage of production and delivery of gloves to them,” Shanmugam said. The lockdown had stretched lead times on deliveries and the “enhanced movement control order will further hamper the supply situation,” he said.
Shares of Top Glove Corp., the world’s largest glove maker, fell as much as 1.5% in the fourth day of losses. Supermax Corp. slid as much as 3%, while Kossan Rubber Industries Ltd. was little changed. The shares of all three companies are set for their lowest level since May last year.
Margma members collectively produce and export gloves to 195 countries, supplying 67% of global consumption. Global demand for medical gloves this year is expected to remain at 420 billion pieces, and jump by 15%-20% in 2022, according to the statement.
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