KUALA LUMPUR, Feb 11 (Bernama) — The Malaysian Rubber Glove Manufacturers Association (MARGMA) expects better earnings as long as crude oil prices remain low, an industry expert said today.
“Latex is the main raw material for rubber gloves and nitrile gloves are made from crude oil by-product,” said Supermax Corp Bhd executive chairman/group managing director, Datuk Seri Stanley Thai Kim Sim.
Thai, one of the panel members, said this at MARGMA’s question-and-answer session here today.
“If oil prices continue to drop to US$40 from the current US$50 per barrel, it will allow rubber gloves to be competitively priced,” he said during a question-and-answer session here today.
He said lower crude oil prices would also translate into lower logistics and transportation costs.
“In tandem with this, the rubber glove industry is projected to grow positively this year, at annual growth of eight to 10 per cent,” he said.
Globally, Malaysia remained as the largest supplier of rubber gloves with an estimated global market share of 62 per cent and was projected to grow to 65 per cent in 2020, he said.
— BERNAMA
