Malaysian glove makers need more than factory efficiency to close China gap
KUALA LUMPUR: Malaysian glove makers may no longer be able to close their cost gap with Chinese rivals simply by making their factories more efficient, as China's largest manufacturers tighten their grip on the supply chain.
Malaysian glove manufacturers face an uphill battle in closing the cost gap with their Chinese counterparts, as Chinese firms gain more control over the supply chain, according to a note from PublicInvest. While efficiency improvements in factories may have provided some relief, the Chinese manufacturers' influence now extends to upstream procurement and supply chain integration, giving them greater control over raw material costs and supply.
This shift has already contributed to a significant erosion of Malaysia's dominance in the global glove industry, with its share of global production falling from 54% in 2018 to 36% in 2025, and export value decreasing by 25% to USD3.3 billion (RM13.52 billion). Despite recent increases in Chinese glove average selling prices, the structural cost disadvantage remains a challenge for Malaysian manufacturers, who will need to find ways to strengthen their cost competitiveness and differentiate their products.
Brief written by urgent.news from New Straits Times's own syndicated text. Machine-written — may contain errors; check the original before relying on it.
