The disruption has significantly affected global shipping routes and pushed Brent crude oil prices above US$100 per barrel. As NBR is derived from petroleum and serves as the primary raw material for nitrile gloves, the situation has directly impacted supply availability and costs. This has placed considerable financial pressure on local manufacturers and raised concerns over global medical glove supply.
Malaysia currently fulfils approximately 45% of global demand for rubber gloves. A prolonged disruption could affect global healthcare systems and risk Malaysia’s standing as a reliable supplier of personal protective equipment (PPE).
“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 Oon Kim Hung, MARGMA’s President
The association emphasised that the rubber glove industry remains a strategic, high-value export sector. It has also expressed continued support for the Government’s directive requiring 100% local manufacturing for glove exports, while stressing that temporary assistance is needed to sustain operations under current conditions.
To address the crisis, MARGMA has outlined two key areas requiring immediate government support:
1. Prioritising Domestic NBR Supply
MARGMA has urged the Government to engage with Malaysian NBR suppliers to temporarily prioritise supply for domestic glove manufacturers over overseas buyers. Ensuring consistent local access to NBR is critical for maintaining production capacity and fulfilling commitments to hospitals and healthcare distributors globally.
This measure is seen as essential to safeguarding Malaysia’s role as a trusted supplier in the global healthcare supply chain.
2. Temporary Relief on Gas ‘Take-or-Pay’ (TOP) Contracts
Due to reduced production capacity caused by NBR shortages, manufacturers are unable to meet minimum gas consumption requirements under existing Take-or-Pay (TOP) agreements. This has resulted in additional financial burdens.
MARGMA is requesting the Government to work with relevant ministries, commissions, and gas suppliers to provide temporary flexibility. Proposed measures include suspending TOP obligations, adjusting the minimum offtake requirements, or offering waivers, rebates, or downward revisions until NBR supply stabilises.
Such relief would help manufacturers manage operational costs and mitigate financial strain during this period of global supply chain disruption.
“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,” said Oon, stressing the broader economic implications.
Malaysia’s rubber glove industry exports to over 195 countries, serving hospitals, laboratories, manufacturers, and essential industries worldwide. In 2025, the sector recorded an export value of RM14 billion (USD 3.2 billion), accounting for approximately 64% of the nation’s total rubber product exports.
As the NBR shortage continues, industry players warn that timely intervention will be crucial to sustaining Malaysia’s leadership in the global glove market and ensuring uninterrupted supply to healthcare systems around the world.
