At present, the global supply of rubber gloves is concentrated in Southeast Asia such as Malaysia, Indonesia and Thailand. More than half of the world's rubber gloves come from Malaysia. Thailand's rubber gloves have a global market share of about 15%. The new crown pneumonia epidemic has led to a surge in global demand for rubber gloves. Thailand's rubber glove industry has seized the opportunity to actively develop and expand its global market share from 15% to 20% in the next five years.
In order to achieve this goal, the Thai Rubber Glove Manufacturers Association (TRGMA) strives to increase investment and improve the overall competitiveness of the industry. The chairman of the association Veerasith Sinchareonkul stated that the long-term goal is to seize 40% of the global market. The move is during the Covid-19 pandemic, when the global demand for rubber gloves soared by 20% to 3.6 million, and demand is expected to increase by another 10% next year. Veerasith urges the government to provide more financial support to help manufacturers expand investment.
He added that it should also simplify regulations to simplify the start-up of new plants. He said: "We want to see Thailand become the world's natural rubber glove production center." He added that the world's major rubber glove manufacturers, China and Malaysia, have expanded their production capacity.
On December 10, local time in Malaysia, Top Glove, the world's largest rubber glove manufacturer, released a report for the first quarter of fiscal year 2021, setting an astonishing record of a 20-fold increase in net profit year-on-year. Top Glove’s net profit from September to November this year reached a record 2.38 billion ringgits (approximately US$585 million), an increase of about 2030% from 111 million ringgits in the same period last year, and still slightly lower than the market’s average expectation of 24.8 Billion ringgit; the company’s Q1 revenue reached 4.76 billion ringgit, a year-on-year increase of 294%.
Regarding the cluster outbreak in the company's Malaysian factory last month, Top Glove confirmed that more than 5,000 employees were diagnosed with the new crown virus. The delivery delays and sales reduction caused by this impact accounted for about 3% of the total annual sales.