KUALA LUMPUR (March 9): Russia-Ukraine crisis is not expected to have a severe impact on Top Glove Corp Bhd as it estimates that the geopolitical tension will affect less than 5% of its total sales volume.
“As a global exporter, Russia and Ukraine are also markets that we have covered. However, the impact is not much,” said Top Glove managing director Datuk Lee Kim Meow at a virtual press briefing in conjunction with the release of the company’s quarterly earnings.
He said the necessary mitigation measures have already been put in place. “What is more important is to keep close touch with our customers to ensure that we have minimal disruptions in the supply of goods that are necessary for humanitarian, medical and other purposes.”
As ports in Ukraine have closed, he said the company is working closely with its European customers to look at ways to redirect some of the shipments to nearby ports.
Lee also said the group is careful, especially on the payment side in view of the developments in the banking industry.
The European Union and the US are excluding seven Russian banks from the SWIFT messaging system, among the sanctions imposed on Russia over its invasion of Ukraine.
“We have kept in touch closely with our customers to find out what is the best way to handle the situation. We hope that the situation will return to normal as soon as possible so that business can continue and people can get back to their normal lives,” he said.
According to Lee, the Russia-Ukraine military conflict is only affecting its business in the two countries. “Nearby countries are business as usual, shipments as usual and that demand is still ongoing,” he added.
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