Kuala lumpur: The Malaysian Rubber Glove Manufacturers Association (MARGMA) has appealed for immediate financial relief, critical support for human capital, and a strategic focus on market positioning for the rubber gloves industry in Budget 2026. Its president, Oon Kim Hung, highlighted the urgent need to reduce the cumulative financial burden, particularly the cess export duty, given the rising multi-segment costs and trade challenges, such as the United States (US) tariffs.
According to BERNAMA News Agency, the cess refers to a levy or tax on rubber products, primarily collected by the Malaysian Rubber Board (MRB) to fund the industry. Oon noted that the Malaysian rubber glove industry is currently facing severely compressed margins due to escalating operational costs and fierce global competition, especially from China and Thailand. These measures are deemed essential to enhance global cost competitiveness and ensure the Malaysian rubber glove industry’s sustainable growth throughout 2026 and beyond.
Oon emphasized the urgency of reducing the current cess rate from 0.2 to 0.1 percent or temporarily suspending it. This measure is necessary given the challenging economic environment, intensified competition, and declining global market share. Reducing or suspending the cess would immediately assist local manufacturers, including small and medium enterprises (SMEs), to manage high operating costs and eroding profit margins. A review mechanism could be introduced to reimpose or adjust the cess once the industry stabilizes and global demand recovers.
Rubber gloves manufacturers are currently grappling with the Sales and Service Tax, foreign workers’ mandatory Employees Provident Fund contributions starting October 1, the Multi-Tier Levy System for foreign workers, and higher utilities and sustainability compliance costs, all contributing to increased expenses.
Oon also suggested that the government consider reopening and streamlining the foreign workers recruitment and replacement process, as human capital is a crucial driver for the industry’s expansion. A persistent shortage of foreign workers, exacerbated by workers’ failure to renew contracts or abscond, continues to impact production scheduling and fulfillment for manufacturers. The association also requested additional government support in the form of tax incentives, reinvestment allowances, and grants to help manufacturers remain competitive while meeting international compliance standards.
To effectively support the Malaysian rubber glove industry and help it regain lost global market share, Oon added that the upcoming budget must include targeted allocation to boost strategic market influence and trade expansion efforts. He proposed a strategic ‘Malaysia Made Glove’ global branding campaign and collaboration with international healthcare associations to showcase Malaysia’s commitment to sustainable and ethical glove manufacturing. Additionally, an allocation for targeted and sustained funding for workforce training programs within the rubber glove industry was suggested to prepare for higher-value and specialized roles aligned with the use of artificial intelligence and technology.
Prime Minister Datuk Seri Anwar Ibrahim, who is also the Finance Minister, is scheduled to table Budget 2026 in Parliament on October 10.