Latest news with #RM15.41
The Sun
7 days ago
- Business
- The Sun
Margma urges govt to rethink imposition of 5% SST on rubber glove raw materials
PETALING JAYA: The Malaysian Rubber Glove Manufacturers Association (Margma) is urging the government to defer and review the imposition of 5% Sales and Service Tax (SST) on natural rubber latex and nitrile butadiene rubber latex raw materials. In a statement today, Margma said the rubber glove industry is Malaysia's largest export contributor to total rubber product exports, generating RM15.41 billion in export revenue last year and supporting more than 78,000 direct jobs. Margma said applying SST to essential raw materials will immediately raise production costs. For companies that have already secured forward sales, absorbing these sudden additional costs will prove unfeasible, the association added. Margma said that at a time when global glove prices remain highly competitive, the added cost cannot be passed on to overseas buyers; instead, it will erode already thin margins, reduce cash flow for reinvestment and further weaken Malaysia's share in a market now dominated by lower-cost producers. Beyond direct cost escalation, it said, the expanded SST risks causing a cascading effect on the entire domestic rubber ecosystem. 'Upstream latex processors and chemical suppliers will face higher operating expenses, while downstream medical-device and industrial-glove manufacturers – many of them SMEs will feel the squeeze on working capital. This could slow job creation, deter future automation projects and jeopardise Malaysia's strategic ambition to remain a global centre for high-value glove production,' said the association. Margma said it fully supports the government's broader revenue diversification agenda, but believes that taxation policy should not undermine a sector that has consistently delivered foreign exchange, high-quality employment and substantial upstream linkages. 'We therefore echo similar appeals by other associations for a calibrated approach: postpone the implementation date, conduct a thorough cost-benefit study with industry participation and consider targeted exemptions or zero-rating for critical raw materials where export competitiveness is at stake.' Margma said it stands ready to collaborate with the Ministry of Finance, the Royal Malaysian Customs Department and all relevant agencies to craft a balanced solution that safeguards fiscal objectives while preserving Malaysia's leadership in the global rubber glove value chain.
New Straits Times
16-06-2025
- Business
- New Straits Times
Margma urges review of SST on glove raw materials
KUALA LUMPUR: The Malaysian Rubber Glove Manufacturers Association (Margma) has called on the government to defer and review the five per cent sales and service tax (SST) on natural rubber latex and nitrile butadiene rubber latex raw materials. In a statement, Margma said the tax will immediately raise production costs, especially for manufacturers with existing forward contracts, who cannot pass on the cost to buyers due to stiff global competition. "This added cost will erode already thin margins, reduce cash flow for reinvestment, and further weaken Malaysia's position in a market increasingly led by lower-cost producers," it said. Malaysia's rubber glove industry generated RM15.41 billion in export revenue last year and supports over 78,000 direct jobs, making it the largest contributor to total rubber product exports. Margma warned the expanded SST could create a ripple effect across the supply chain, increasing costs for upstream latex processors and chemical suppliers, and straining working capital for downstream manufacturers, many of which are small and medium enterprises. "This could hamper job creation, stall automation efforts, and threaten Malaysia's ambition to remain a global hub for high-value glove production," it said. While supporting the government's goal of diversifying revenue, Margma said taxation should not jeopardise a key export sector that delivers strong foreign exchange earnings and high-quality employment. It urged a "calibrated approach" including a postponement of the SST rollout, a comprehensive cost-benefit study involving industry stakeholders, and targeted exemptions or zero-rating of critical raw materials. Margma reaffirmed its willingness to work with the government on a balanced solution that aligns with fiscal objectives while safeguarding the industry's global competitiveness.
New Straits Times
06-05-2025
- Business
- New Straits Times
MARGMA backs directive requiring full local manufacturing for glove exports
KUALA LUMPUR: The Malaysian Rubber Glove Manufacturers Association (MARGMA) has expressed strong support for the government's new directive mandating that only rubber gloves fully manufactured and processed in Malaysia will qualify for export under the country's certificate of origin. The policy, announced by Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani, requires glove exporters to ensure that the entire manufacturing process takes place domestically to be eligible for certification from the Ministry of Investment, Trade and Industry (MITI). Only products that are fully processed and produced domestically are permitted for export in line with Malaysia's commitment to international trade partners such as the United States. Johari said the government will not allow gloves produced abroad to be brought into Malaysia solely for repackaging or relabelling before being re-exported. MARGMA president Oon Kim Hung welcomed the decision, calling it both "timely and necessary" to safeguard the integrity of Malaysia's world-renowned glove industry. Onn stressed that re-exporting finished gloves that are merely trans-shipped through Malaysian ports threatens to erode years of trust built with international buyers. "By ensuring every critical manufacturing step takes place on Malaysian soil, we safeguard product quality, traceability and the stringent ESG standards demanded by global buyers," Oon said in a statement. Rubber gloves remain a key pillar of the national economy. In 2024, Malaysia exported RM15.41 billion worth of rubber gloves—nearly half of the country's total rubber and rubber-based product exports. Onn said the new directive is seen as a strategic move that delivers multiple benefits. "First and foremost, it cements Malaysia's reputation for uncompromising quality and transparent supply chains, giving importers and healthcare providers clear assurance that gloves labelled as "Made in Malaysia" truly originate here. "It also creates fair competition by preventing trans-shipment practices that disadvantage manufacturers who invest heavily in domestic facilities, technology and skilled Malaysian employees," Onn said. "Thirdly, it underpins long-term industry sustainability by encouraging continued capital expenditure, R&D and technological upgrades that will keep Malaysia at the forefront of hand-protection innovation." MARGMA also welcomed the minister's clarification that importing raw latex—especially from neighbouring Thailand—remains permissible. With local latex production meeting only about one-third of industry needs, imports are vital to ensuring uninterrupted glove production. "Importing latex for processing here is entirely different from importing finished gloves. This policy strikes the right balance between safeguarding quality and ensuring supply security," Oon explained. To support the directive's rollout, MARGMA said it will work closely with the Malaysian Rubber Board (MRB) to assist member companies with compliance, documentation, and audit readiness. It will also collaborate with enforcement bodies to prevent trade diversion and maintain the industry's international credibility. "We urge every licensed exporter to observe both the spirit of this directive. Together with the Ministry and MRB, MARGMA is committed to preserving Malaysia's position as the trusted global source of high-quality, responsibly manufactured rubber gloves," Oon said.
New Straits Times
25-04-2025
- Business
- New Straits Times
Malaysia bolsters regulatory oversight of rubber glove sector
KUALA LUMPUR: The Plantation and Commodities Ministry, through the Malaysian Rubber Board (MRB), has strengthened regulatory oversight of the rubber glove sector in response to evolving global trade dynamics. The ministry said in line with the significant contribution of the rubber glove sector to the national economy, MRB implemented several strategic initiatives to strengthen regulatory oversight of the industry in addressing current global trade issues and challenges. One such initiative involves tightening licensing requirements for the export of rubber gloves under the Malaysian Rubber Board (Licensing and Permit) Regulations 2014. "With immediate effect, all LGM-licensed rubber glove exporting companies are only permitted to export rubber gloves sourced from local manufacturing facilities," it said. The measure is aimed at safeguarding product quality and ensuring the sustainability of Malaysia's rubber glove industry Additionally, it said this serves as a preventive step against the risk of Malaysia becoming a destination for trade diversion from other countries. "This follows global developments that have highlighted increasing uncertainties in the international trade landscape, including shifts in key global market policies that directly impact supply chains and the export market for rubber products. "Such conditions have the potential to lead to a rise in rubber glove imports, which could undermine the competitiveness of the domestic rubber industry," it said. Malaysia, recognised as one of the world's top producers and exporters of rubber and rubber-based products, recorded export values of RM33.7 billion in 2024. Of this, RM15.41 billion, or 45.8 per cent, came from the rubber glove segment alone. Meanwhile, the ministry said MRB is conducting joint operations with other enforcement agencies to enhance monitoring and enforcement within the rubber glove sector, in order to uphold the image and competitiveness of Malaysia's rubber industry. "The ministry and MRB will continue to closely monitor global trade developments and remain ready to implement proactive measures to protect the overall interests of the national rubber industry, including all rubber-based products. "In the near future, the ministry will also review long-term approaches that align with evolving geopolitical and global economic landscapes to ensure the resilience and marketability of Malaysia's rubber industry is sustained," it added.
Barnama
25-04-2025
- Business
- Barnama
Only Locally Produced Rubber Gloves Allowed For Export
REGION - CENTRAL > NEWS PUTRAJAYA, 25 April (Bernama) -- Malaysia has imposed an immediate restriction requiring all rubber glove exporters licensed by the Malaysian Rubber Board (MRB) to only export gloves produced by local manufacturers, the Ministry of Plantation and Commodities (KPK) announced today. In a statement today, the ministry said the move was made to ensure product quality and the sustainability of Malaysia's rubber glove industry, while also preventing the country from becoming a trade diversion destination for products from other nations. 'This step is taken in view of the global developments that reflect increasing uncertainty in the international trade landscape, including changes in policies among major world markets that directly impact the rubber supply chain and export market. bootstrap slideshow 'These circumstances may lead to a rise in rubber glove imports, which could affect the competitiveness of the domestic rubber industry,' the ministry said. KPK noted that Malaysia is among the world's top producers and exporters of rubber and rubber-based products, with exports totalling RM33.7 billion in 2024, of which rubber gloves contributed RM15.41 billion or 45.8 per cent. In view of the ongoing global trade challenges, the MRB has implemented several strategic initiatives to strengthen regulatory oversight of the industry, including tightening export licensing requirements for rubber gloves under the Malaysian Rubber Board (Licensing and Permit) Regulations 2014. Additionally, the MRB is also actively conducting joint operations with other enforcement agencies to enhance monitoring and enforcement in the rubber glove sector, in order to safeguard the image and competitiveness of the national rubber industry. 'KPK and the MRB will continue to closely monitor the global trade developments and are always ready to implement proactive measures to protect the overall interests of Malaysia's rubber industry, including all rubber products,' the ministry said. KPK added that it is also looking into suitable approaches in response to shifts in the global geopolitical and economic landscape to ensure the resilience and marketability of Malaysia's rubber industry.
