“To uphold this standard and prevent trade diversion, our manufacturers need temporary relief to survive this external supply shock and to navigate this unprecedented supply-driven challenge”, said MARGMA President, Mr Oon Kim Hung.
Selangor, 26 March 2026 – The Malaysian Rubber Glove Manufacturers Association (MARGMA), the official voice of the Malaysian rubber glove players, is urgently seeking solutions and is calling on the Malaysian Government for temporary relief measures to manage a severe shortage of Nitrile Butadiene Rubber latex (NBR) triggered by the ongoing blockade of the Strait of Hormuz.
The blockade has severely disrupted global shipping routes and driven Brent crude oil prices above US$100 per barrel. Because NBR is manufactured from petroleum derivatives and is
the primary raw material for nitrile gloves, this crisis has directly impacted both its availability and cost. This is now threatening global medical glove supplies and places immense financial strain on local manufacturers.
As Malaysia fulfils approximately 45% of global rubber glove demand, any prolonged disruption threatens the stability of global healthcare systems and risks damaging Malaysia’s reputation as the world’s leading and reliable PPE supplier.
“Malaysia’s rubber glove industry is a strategic, high-value export sector critical to global healthcare systems. MARGMA has been fully supportive of the Government’s directive requiring 100% local manufacturing for glove exports. However, to uphold this standard and prevent trade diversion, our manufacturers need temporary relief to survive this external supply shock and to navigate this unprecedented supply-driven challenge”, said MARGMA President, Mr Oon Kim Hung.
To navigate this crisis, MARGMA is advocating for urgent government support in two critical areas:
1. Prioritise Domestic NBR Supply to Secure Local Production
MARGMA respectfully requests the Government to engage with Malaysian Nitrile Butadiene Rubber suppliers to temporarily prioritise NBR supply to Malaysian nitrile glove manufacturers over overseas buyers.
This is a critical period to ensure consistent domestic NBR supply is provided to maintain national production capacity, so that rubber glove manufacturers are able to fulfil commitments to hospitals and healthcare distributors worldwide and safeguard Malaysia’s position as a trusted and reliable global supplier.
2. Grant Temporary Relief on Gas ‘Take-or-Pay’ (TOP) Contract
Because NBR shortages are forcing factories to run below normal capacity, manufacturers are unable to meet their minimum gas consumption quotas. This triggers further financial burden on local manufacturers under Take-or-Pay (TOP) agreement with gas suppliers.
MARGMA respectfully requests the Government to engage with other relevant ministries, commission, and gas suppliers to consider providing support to the industry, to temporarily suspend the TOP obligations, provide flexibility in minimum gas offtake requirements, and/or provide waivers, downward adjustments, or rebates on contracted volumes until the NBR supply stabilises. This relief would help manufacturers manage operational costs and avoid additional financial strain during this period of unprecedented global supply chain disruption.
As Malaysia is a major supplier of rubber glove to the world market fulfilling approximately 45% of global market demand, this major NBR disruption will negatively impact supply needs of rubber gloves as well have damaged the good reputation of Malaysia as world
leading supplier of this essential PPE to the global healthcare systems.
Mr Oon further stressed, “The rubber glove industry remains a cornerstone of the Malaysian economy. A swift, collaborative public-private response is vital to protecting local jobs, supporting the economy, and ensuring global hospitals do not face a critical shortage of life-saving protective gear and safeguard Malaysia’s position as a trusted and reliable global supplier.”
Today, Malaysian rubber glove manufacturers export to over 195 countries, serving hospitals, laboratories, manufacturers and essential industries around the world. The rubber glove industry recorded a total export value of RM14 billion, or USD 3.2 billion in 2025 and anchor Malaysia’s rubber sector, accounting for approximately 64% of the nation’s total rubber product exports.
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