Malaysia's glove manufacturing sector is confronting a new set of challenges as the US imposes a 19% tariff on its exports, since August 1. The duty mirrors similar tariffs on Thailand while China faces even higher barriers at 55%.

For an industry that exports gloves to 195 countries worldwide, the tariff represents both a threat and an opportunity. Despite the headwinds, rubber glove exports demonstrated resilience, hitting RM6 billion from January to May 2025, said Minister of Plantation and Commodities Datuk Seri Johari Abdul Ghani in recent reports. He noted that Malaysia's strength lies in its comprehensive production ecosystem, economies of scale, consistent high product quality and broad market reach for both natural and synthetic gloves.

Navigate Cost Pressures and Market Diversification In a written response to The Malaysian Reserve (TMR), Malaysian Rubber Glove Manufacturers Association (Margma) president Oon Kim Hung described the tariff as "a significant challenge to the industry's cost competitiveness in one of its most important export markets." However, he emphasised that Malaysia is not alone. "Thailand faces a similar 19% tariff while China has been subjected to a substantially higher tariff, effectively limiting its competitiveness in the US market," he told TMR.

To offset potential disruption, Malaysian manufacturers are accelerating efforts to diversify markets beyond the US. They are expanding into developing countries and broadening product applications beyond medical gloves, including specialised personal protective equipment (PPE) like electrical safety gloves and dielectric products for electrocution protection. Margma advises its members to enhance operational efficiencies, invest in automation, maintain strict compliance with regulatory standards and innovate to differentiate Malaysian products.

Despite early uncertainty, the association noted that gloves are not a discretionary purchase and so tariffs will not impact on consumption and demand growth.