BERNAMA – 13MP: High-value Manufacturing Vital To Maintain Malaysia’s Position As Top Glove Exporter –

By Danni Haizal Danial Donald

KUALA LUMPUR, Aug 26 (Bernama) — Malaysia’s global leadership in rubber glove exports during the 13th Malaysia Plan (13MP) period hinges on a sustained emphasis on high-value manufacturing, digitalisation, sustainability and labour market reforms.

The Malaysian Rubber Glove Manufacturers Association (Margma) said it is also essential for the government to establish a government-to-government (G2G) trade agreement to secure preferential access to major export markets amid rising competition and trade disruption due to tariffs.

Margma president Oon Kim Hung told Bernama the plan should also contain strategies to transform the sector to be more sustainable, with manufacturing processes that are technology-driven.

“This would enable the sector to continue to contribute significantly to the nation’s economy and export growth,” he said when commenting on the 13MP unveiled by the government recently.

Oon said these objectives could be achieved through effective implementation and close collaboration between the government and industry.

Last year, Malaysia exported RM15.41 billion of rubber gloves, or 45.8 per cent of the rubber products, for the year, with the major markets being the United States (US), Germany, Japan, the United Kingdom, China and Indonesia. Total rubber and rubber-based products totalled RM33.7 billion last year.

 “The 13MP presents a well-balanced approach between economic growth and nation-building, with clear priorities that resonate with the long-term needs of the Malaysian rubber glove industry.

“We welcome the focus on high-value manufacturing, digitalisation, sustainability, and labour market reforms, as these are critical pillars for our sector’s continued global leadership,” he said.

He said continuous investment is essential for a sustainable future, with industry players collectively investing to remain committed to this path.

“Integrating sustainability into core business practices is a key focus for our members to address environmental concerns, reduce our carbon footprint and meet rising global environmental, social and governance (ESG) expectations.

“This includes eco-friendly manufacturing, circular-economy practices, waste reduction and energy efficiency measures, in line with the 13MP’s green economy goals such as carbon market development and extended producer responsibility,” he said.

Strengthened rubber certification

Oon said the association lauded the government’s commitment under the 13MP to strengthening local sustainability certification standards for rubber, which is in line with its ongoing engagement with the Malaysian sustainable natural rubber (MSNR) initiative. 

He said MSNR was built on principles of no deforestation, legal land cultivation, environmental stewardship, social compliance and full supply chain traceability.

The framework has already delivered results, with the country’s first export of MSNR-compliant rubber to the European Union in December 2024, he said.

He said that Margma has consistently advocated for robust certification standards to help our industry players strengthen their market differentiation.

“This includes the establishment of common Malaysian standards for rubber gloves, covering areas such as life cycle assessments, labour conditions and social compliance.

“As such, collaboration with stakeholders is essential to enhance traceability and certification across the supply chain,” said Oon.

Rubber replanting programme

Oon said the government’s plan to enhance the rubber replanting programme would improve yields, quality and sustainability of Malaysia’s natural rubber supply.

He said this could be done by introducing high-yield, disease-resistant clones and embedding sustainable land management from the outset.

“The plan would secure a stable, responsibly sourced raw material base for downstream industries such as rubber gloves, reduce reliance on imports, and boost our competitiveness in global markets.

“We believe this programme could restore Malaysia’s competitive edge, putting us on par with leading rubber-exporting nations like Thailand,” said Oon.

However, he said the country must maximise its impact and equip planters with modern agricultural capabilities to improve harvesting quality and yields, as without this, the benefits of replanting risk are underutilised.

“We strongly urge that the programme be paired with high investment in automation, digitalisation and artificial intelligence-driven plantation management to enhance efficiency further and reduce dependence on manual labour.

“Leveraging technology such as digital plantation monitoring and supply chain traceability can also support ESG compliance, improve transparency and open new export opportunities,” he said.

Key areas to improve

Margma also urged the government, via the Ministry of Plantation and Commodities, to establish a G2G trade agreement to secure preferential market access, as this is vital towards strengthening global market access.

“Through G2G, we could reduce tariff and non-tariff barriers and ensure Malaysian rubber products, especially medical gloves, remain competitive in key markets such as the US, European Union and emerging economies.

“This is particularly important as our sector is currently facing rising costs, supply chain disruptions, labour shortages, electricity price hikes, new US tariffs and intense competition from China,” he said.

He added the government should boost research and development (R&D) and product diversification, which would help industry players move into higher-value, niche products such as advanced medical devices, industrial gloves and eco-friendly alternatives.

“Strengthening collaboration among government, research institutions and industry players would further accelerate this innovation,” he added.

Prime Minister Datuk Seri Anwar Ibrahim recently stated that the government would focus on increasing productivity in the agri-commodity sector — palm oil, rubber, and cocoa — through the use of modern technologies like mechanisation, automation, robotics, as well as through R&D efforts.

Under the 13MP, the agri-commodity replanting programme, particularly for oil palm and rubber smallholders, will be expanded to boost productivity, increase smallholders’ incomes, and raise the country’s export value.

— BERNAMA

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