Global uncertainties cast shadow over Malaysia's glove industry, say analysts
BIMB Securities said in a note that it foresees muted order volumes persisting for Malaysian glove makers in the upcoming quarters, with a recovery in demand expected to resume in the second half of 2025.
Despite the anticipated pickup, the research house believes customers are likely to adopt a "wait-and-see" approach in placing orders due to ongoing uncertainty surrounding the U.S. tariff environment.
It also noted that Malaysia's loss of market share among non-U.S. customers further pressures the operating performance of local glove manufacturers.
"Overall, the rubber glove industry continues to face oversupply and there is still a lack of catalysts for strong growth in the near term," it said.
Apex Securities also said in a note that it believes the near-term outlook remains challenging for Malaysian glove companies with significant exposure to U.S. markets, due to ongoing tariff uncertainties.
While the global rubber glove market is gradually recovering, with growth anticipated through 2025, the research house noted that glove players in Malaysia continue to face headwinds from soft U.S. demand, continued oversupply in non-U.S. markets, and rising domestic operating costs.
"Amid these uncertainties, most U.S. clients are adopting a cautious 'wait-and-see' approach," it said.
It anticipated flattish quarter-on-quarter earnings for Malaysian glover players in the upcoming quarter, reflecting ongoing global uncertainties and sluggish U.S. market demand.
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