The new crown pneumonia epidemic has increased the demand for medical rubber gloves all over the world, and has also attracted investors from different industries to enter the market. Recently, JF Apex Securities analysts said that due to the inflow of investors, the annual production capacity of rubber gloves is expected to increase by 20 billion, but the demand in the first half of next year will decline, and it will be difficult for new companies that lack market competitiveness to make profits.
After the outbreak, Malaysian real estate development, information technology, palm oil production and other different industries have entered the rubber glove production field. In the past two months, domestic listed companies that have announced new entrants in the field have invested a total of 900 million ringgits, and approximately 70 new rubber glove production lines have been added.
JF Apex Securities analysts pointed out that with the development of vaccines and the end of the epidemic, market demand for rubber gloves may decline in the first half of next year. The initial investment cost for new entrants in this field is very high, and its production efficiency is difficult to compare with large enterprises, so it is difficult to obtain the expected profits. Malacca Securities analysts pointed out that it takes at least half a year to build a rubber glove production plant, so it takes time to make a profit. Other professional analysts also believe that new companies lacking professional production experience and sales networks will find it difficult to form competitiveness against large companies.
The Malaysian Rubber Glove Manufacturers Association stated that by the end of this year, Malaysia’s domestic rubber glove production will expand to 220 billion, an increase of 20% year-on-year, almost all of which will be exported.