Baku:The Malaysian Rubber Glove Manufacturers Association (MARGMA) has highlighted that Budget 2027 is set to bolster Malaysia's economic resilience, support industrial transformation, and enhance workforce development within the rubber glove sector.
According to BERNAMA News Agency, MARGMA's president, Oon Kim Hung, expressed encouragement over the budget's measures to promote automation, digitalisation, innovation, and sustainable manufacturing. These efforts are seen as crucial for maintaining Malaysia's competitiveness in a challenging global environment.
Oon emphasized the importance of government efforts to accelerate the adoption of advanced manufacturing technologies, improve workforce capabilities, and drive productivity growth. He noted that investment incentives and automation support are vital for helping manufacturers manage rising operating costs while maintaining global competitiveness.
The rubber glove industry is a significant contributor to Malaysia's economy, being a major export-oriented sector with exports surpassing RM7 billion in the first half of 2026. This accounts for approximately 66 percent of Malaysia's total rubber product exports. MARGMA also supports efforts to strengthen the natural rubber ecosystem and improve the livelihoods of smallholders.
Prime Minister Datuk Seri Anwar Ibrahim recently announced an increase in the rubber production incentive (IPG) rate for smallholders to RM3.30 per kilogramme, benefiting over 300,000 smallholders. MARGMA also advocates for a review of industry-specific cost burdens, such as the export cess on rubber gloves, to enhance Malaysia's competitiveness further.
Oon urged for the reduction of unnecessary costs to strengthen the industry's ability to attract investment, expand exports, and maintain Malaysia's leadership in the global glove market. He also called for continued government support in addressing international trade barriers and market access challenges faced by Malaysian exporters.
MARGMA is prepared to collaborate with the Ministry of Finance, the Ministry of Investment, Trade and Industry (MITI), and other stakeholders to develop policies that encourage reinvestment, strengthen competitiveness, and support the long-term growth of Malaysia's rubber glove industry.