MARGMA Networking Dinner 2025

MARGMA Networking Dinner 2025 Highlights Rubber Glove Industry’s Strong Performance Amidst Challenges with Focus on Leading Sustainability

The annual MARGMA Networking Dinner 2025 recently held at the Sunway Resort Hotel, saw Industry leaders, policymakers, stakeholders and guests speakers convened to exchange ideas and reinforce their commitment to the continued success and evolution of the sector, under the theme “Charting a Sustainable Future: Malaysian Rubber Gloves Leading the Way.”

Minister’s Keynote Speech Prioritizes Natural Rubber Production and Sustainability

The Minister of Plantation and Commodities, Yang Berhormat Datuk Seri Johari Bin Abdul Ghani’s keynote speech, delivered on his behalf by Yang Berbahagia Dato’ Dr Zairossani Mohd Nor, Director General of the Malaysian Rubber Board (LGM), emphasized the Rubber Glove Industry’s significant contribution to the National Rubber Industry and addressed Natural Rubber Production and Sustainability as a priority.

The Minister acknowledged Malaysia’s current status as a net importer of natural rubber where imports significantly exceed domestic production. He stressed on the Ministry of Plantation and Commodities’ ongoing collaboration with the Malaysian Rubber Board (LGM) to revitalise rubber plantations through land consolidation and a new economic model aimed at maximising yields from the extensive smallholder estates. According to the Minister, potential to tap into currently unutilised land represents a significant opportunity to boost domestic natural rubber production.
Recognising the global imperative for sustainable supply chains, the Minister highlighted the recent launch of the Malaysian Sustainable Natural Rubber (MSNR) initiative. This regulatory framework ensures alignment with international sustainability standards, including the EUDR, and is built upon principles of no deforestation, legal land cultivation, environmental sustainability, social compliance, and supply chain traceability. Malaysia have in December 2024 successful achieved its first export of MSNR-compliant rubber to the European Union. This underscores greater opportunity for Malaysian made rubber products to be recognised for meeting global sustainability demands.

Resilience and Growth Amidst Challenges

At the dinner, MARGMA President Mr. Oon Kim Hung presented on the Malaysian rubber glove industry’s pursuit of a sustainable future, highlighting a rebound in export performance in 2024 and its potential outlook.

Total export value in 2024 reached an estimated RM 15.41 billion, representing a remarkable 30.2% increase compared to 2023. Export volume also saw a substantial rise, growing by 27.6% to a total of 615.9 million kilograms for the year with the top three export destinations being the United States, Japan, and China.

While the 2024 figures show positive growth, it’s important to note that both export value and volume remain below pre-COVID levels recorded in 2017-2019. MARGMA emphasise that the industry players are committed to working collaboratively to surpass these previous numbers, with continued support from the Ministry, Malaysian Rubber Board (MRB), and Malaysian Rubber Council (MRC).

Remarkably, the Malaysian rubber glove industry has navigated around challenges and demonstrated resilience in the face of intense global competition and geopolitical tensions. Industry players have successfully adapted to meet the stringent demands of the world’s healthcare and other industries.
The focus is now firmly on a future where Malaysian rubber gloves are synonymous with quality, innovation, efficiency, and sustainability. The industry players aims to lead, not follow, in setting the standard for sustainable practices.

Market Trends and Dynamics

Analysis of the 2024 figures reveals key trends: Natural rubber gloves accounted for 35% of the export volume, while synthetic gloves made up 65%. Surgical and medical gloves represented 72% of the export volume, with other types of gloves accounting for the remaining 28%. This data provides valuable insights into current market demands.
Many industry players have been adjusting their production lines and installed capacity, with the expected plant utilisation rate currently around 70%.
The industry is also closely monitoring evolving global market dynamics, particularly the impact of U.S. policy changes on the glove trade. A continued focus on innovation, quality, and sustainability is crucial to maintain a competitive edge.

Positive Outlook for 2025

Encouraging projections are in place for 2025. The Malaysian Rubber Council (MRC) anticipates a 10% to 12% increase in Malaysia’s rubber glove export value, reaching approximately RM17 billion.
Global demand forecasts also paint a positive picture:

• 2024: 390 billion pieces (estimated)
• 2025: 421 billion pieces (forecast)
• 2026: 455 billion pieces (forecast)
• 2027: 491 billion pieces (forecast)
• 2028: 530 billion pieces (forecast)

Addressing Challenges and Ensuring Competitiveness

Despite the positive outlook, the industry remains mindful of challenges, including market recovery from overstocking, suppressed Average Selling Prices (ASP), intense price competition, rising costs, supply chain disruptions, labor shortages, and impending electricity price hikes.
The industry has appealed to the Ministry for careful policy-making to maintain Malaysia’s competitiveness. Industry players are also committed to investing in automation, digitalization, and AI technology to improve efficiency and reduce dependence on manual labour.

Expert Panel Shares Insights and Perspectives

Another significant highlight of the MARGMA Networking Dinner 2025 was the insightful forum that was well moderated by Freda Liu. The session brought together a distinguished panel of speakers who delved into critical questions surrounding the industry’s role in Environmental, Social, and Governance (ESG) matters and the delicate balance between sustainability goals and business profitability in an increasingly stringent global regulatory landscape, particularly within the EU market. The overarching discussions provided attendees with valuable perspectives on how the Malaysian Rubber Glove Industry can assert global leadership in ESG and maintain a robust ecosystem, attract talents while navigating evolving healthcare systems and the demands of sustainability.

The forum featured engaging contributions from Professor Dr. Ong Kian Ming of Taylor’s University, who addressed the future of talent in sustaining industry growth. He emphasised the need for the rubber glove sector to actively promote itself as an attractive sector and adopt strategies and talent programs similar to those of MNCs to meet evolving expectations.
Muhammad Eizaaz Bin Muhammad Redzuan, CEO of MRC, provided a perspective on the rubber glove industry as a national agenda, discussing the interplay between national objectives and global competitiveness in coping with the rapid changes of the global trade landscape.

H.E. Rafael Daerr, Delegation of the European Union to Malaysia, offered crucial insights into the realities and expectations of the EUDR and recommendations for industry players in navigating supply chain challenges. He believed that Malaysia is at the forefront in its efforts and is ahead of the curve with competitive advantage.

Finally, Dato’ Prof Dr. Adeeba Kamarulzaman, CEO of Monash University Malaysia, explored the sustainable future of healthcare and the vital role of protection and prevention in an AI-powered generation, assuring rubber glove industry players that AI would not be a threat. She emphasised the need to bring academia and industry closer together for impactful research and development, and to train the next generation to be work-ready for greater prospects.

Sustainability: The Guiding Principle

The Networking Dinner effectively set the tone, demonstrating the composed state of the Malaysian rubber glove industry players and their commitment to exploring new technologies, investing in research and development, and adopting best practices to minimise environmental impact, enhance worker welfare, and ensure the highest ethical standards. By working together, MARGMA and its members strive to create a circular economy model for the rubber glove industry and continue to position Malaysia as a global leader in sustainable glove manufacturing.