July 31, 2024 - Malaysian glove stocks continue the decline from yesterday. $TOPGLOV (7113.MY)$ fell 4.59% to RM1.04, $HARTA (5168.MY)$ fell 5.66% to RM2.99, $KOSSAN (7153.MY)$ fell 5.45% to RM2.08.
A recent report by Malaysian investment banks highlights the robust capabilities of Chinese glove manufacturers, following a visit to their modern facilities. With production lines operating near full capacity, these companies are set to expand further, leveraging advanced technology and integrated supply chains to achieve competitive production costs. Although this expansion surprised some, given the U.S.'s planned tariffs from 2026, Malaysian glove producers are anticipated to maintain strong profitability in the coming year due to stable demand and pricing. While acknowledging the competitive challenge, the report suggests that Malaysian manufacturers can thrive by focusing on cost efficiency and a robust balance sheet, as buyers diversify their orders beyond China, including to Malaysia.