KUALA LUMPUR: Malaysian glove makers are poised to gain if US President Donald Trump follows through on his threat to impose an additional 50% tariff on Chinese goods. CIMB Securities Sdn Bhd stated that the potential tariff hike could enhance Malaysia’s competitive edge in the global glove market, especially in relation to Chinese producers.
According to CIMB Securities, Malaysia accounted for 45% of the global glove market in 2024, while China held 28%. The firm highlighted three possible scenarios—bullish, base, and conservative—under the assumption that the Trump administration imposes the tariff. In any of these scenarios, Malaysian glove makers would benefit, as the tariff would make their products more attractive to US buyers compared to those from China.
Malaysia currently enjoys the lowest US reciprocal tariff rate of 24% among major glove-producing countries, compared to China’s 34%, Vietnam’s 46%, Thailand’s 36%, Indonesia’s 32%, and Cambodia’s 49%, CIMB said.
However, the firm also warned that while higher tariffs on Chinese gloves could drive US demand toward Malaysian products, this advantage may be offset by Chinese manufacturers shifting their focus to non-US markets, increasing competition in those regions. Furthermore, the uncertainty around policies and cost volatility could lead US buyers to adopt a more cautious approach, resulting in softer demand and reduced purchase volumes.
CIMB Securities has maintained a “neutral” rating on the rubber glove sector due to the weak near-term outlook and the ongoing uncertainties in the operating environment. The firm’s top picks for the sector are Kossan Rubber Industries Bhd and Supermax Corporation Bhd, both rated “buy.”
