Margma lowers export forecast

THE Malaysian Rubber Glove Manufacturers Association (Margma) has revised downwards its initial export forecast for the year from RM13 billion to RM11.5 billion as the industry faces labour shortage.
“When we came up with the RM13 billion export forecast, we thought we would be able to hire the required number of foreign workers in tandem with our members’ factory expansions.
“But lately, the government had drastically cut approval permits for foreign workers. Our members face acute labour shortage to man the new factories,” Margma president Lim Kwee Shyan said.
The situation, he said is hampering the industry’s export growth.
“Based on initial numbers, it looks like we’ll only be able to grow about 15 per cent to RM11.5 billion from last year’s RM9.8 billion,” he told reporters at a media roundtable discussion held here yesterday.
Despite the downward forecast revision, Lim noted that Malaysia is still set to post a record high in exports.
Healthcare products like medical gloves continue to see strong demand despite the current lacklustre global economic growth.
The rubber glove industry is seen to be labour intensive.
However, Lim said Margma members are working diligently to mechanise their manufacturing processes.
“We have come a long way in innovating our products in the last 25 years. We understand the need to reduce reliance on foreign workers. From a practical point of view, our industry needs a longer timeframe to mechanise and reach full automation,” he said.
Three months ago, the government announced a blanket minimum wage of RM900 for Peninsular Malaysia and RM800 for Sabah, Sarawak and Labuan. The policy, which is expected to take effect January 1 2013, applies to all workers in the private sector, except those working as maids.
Despite the challenges of limited foreign labour and prospect of rising wages, Lim said Margma’s long term view is positive as glove demand is expected to keep growing at between eight per cent and 10 per cent a year.
“Rubber gloves, be they natural rubber or synthetic, are a necessity in the healthcare and food-handling sectors,” he said.
For two decades, Malaysia has been the world’s top supplier of rubber gloves. Last year, the country exported more than 100 billion pieces of rubber gloves to more than 180 countries. This makes up two-thirds of the global market for rubber gloves.
“Going forward, we expect further growth in the industry on the back of rising healthcare awareness in emerging markets, especially in China, India and the Latin American countries,” Lim added.
Margma comprises 45 ordinary members representing 90 per cent of local glove manufacturers and 85 associate members who are suppliers and service providers to the industry.