This article first appeared in The Edge Financial Daily on March 26, 2020

KUALA LUMPUR: The Malaysian Rubber Glove Manufacturers Association (Margma) wants the government to allow its members to operate at 100% capacity to meet the surge in demand amid the Covid-19 pandemic.

It warned of a chronic shortage of medical gloves and higher production costs in the wake of rising demand, as manufacturers’ production capacity is being constrained because they are only allowed to operate with half of their original workforce due to the movement control order (MCO).

“Already, the world is facing a huge shortage of gloves, and now we are operating at half of our capacity. Definitely there will be fewer gloves being produced, and this could cause a chronic shortage [in] the world,” Margma president Denis Low told The Edge Financial Daily.

Malaysia, the world’s largest producer of medical gloves, is expected to deliver about 225 billion pieces this year, about 65 % of the total world requirement of 330 billion pieces.

Hence, Low said local rubber glove manufacturers are duty-bound to ensure enough gloves are supplied to hospitals and healthcare givers in their fight against Covid-19.

Low said there should not be any shortage of rubber gloves in Malaysia as the country consumes only about 120 million pieces of rubber gloves per year and this can be easily fulfilled given local manufacturers’ huge capacity.

“All the private hospitals in Malaysia are getting [their] gloves directly from local rubber companies. They are being supplied fully (as much as they want),” Low said.

“But the local rubber glovemakers did not supply to the government. In fact, the government only buys gloves from Pharmaniaga (Bhd) to supply to government hospitals and other government entities,” he said.

Low admitted there are some disruption issues involving supporting industries, such as supply of chemicals and other raw materials as well as packaging materials, besides freight and logistics services.

He said Margma has appealed to the ministry of international trade and industry (Miti) on the matter in the hope that supporting industries are allowed to operate during the MCO period to ensure the glove manufacturers can operate smoothly.

In a separate statement yesterday, Margma said it is gearing up its members to run at optimum capacity with strict instructions to adhere to good manufacturing practices.

Margma added that its members are following Miti’s instruction of taking good care of their workers by providing them with protective gloves, face masks and sanitisers plus the need to frequently disinfect their production floors and offices.

However, Margma expects production costs to increase by 30%.

“There will of course be the extra overtime and for workers to be compensated accordingly and adequately with hardship allowance too. It is obvious that production will also be curtailed by the 50% policy. Thus, all in all, production costs will increase tremendously by at least 25% to 30 % not taking into consideration the ripple effect that will pervade throughout the supply chain.

“Fortunately, buyers are aware of this cost factor and have come forward to assist and cooperate to bear the costs as well” it said.

Margma said it hopes to receive the government’s permission to run at 100% capacity in tandem with the support services group.

“We are sure that the world would be grateful to Malaysia in providing this critical protective device (rubber gloves),” it added.