President of the Malaysian Rubber Glove Manufacturers Association (MARGMA), Dr Supramaniam Shanmugam reminded the buyers from around the World to be vigilant of scammers and con man while sourcing for rubber gloves.
He emphasised that the global shortage of rubber gloves will last beyond 2022 Q1 and the current order lead time to be at least 6 to 8 months or more. As such, any company that claims to have ready stock for new buyers are possibly scammers and con man looking for victims and desperate buyers looking to get quick and immediate deliveries and /or shipments.
MARGMA had issued several warnings about scammers and con artists intermittently since June 2020. We continuously engage with the relevant authorities on this pressing situation and various enforcement activities have been carried out by the Malaysian authorities to weed out unscrupulous scammers. Despite the efforts, many desperate and unsuspecting buyers had since been conned of millions of US dollars from all around the globe through various online transactions without receiving any gloves or received defective gloves.
The following are the major types of scams reported over this past year where perpetrators are not manufacturers:-
- Claiming as agent or allocation holders for manufacturers ~ there is no such arrangement by manufacturers
- Passing off visuals of stocks in warehouse available for immediate sale
- Locking in capacity for future Orders and collecting upfront deposits
- Misrepresenting the quality of the gloves
- Shipping off defective gloves as good gloves
- Unauthorised packing of gloves under manufacturers’ brand
- While the association is trying hard to educate enquirers of the above types of scams, there had been few callers who refused to accept official explanation, exposed themselves to the risk of being conned and fell prey to scammers due to their desperation and hope of making quick money.
MARGMA again calls on buyers to beware of who they are dealing with and if in doubt, to check with the manufacturers directly. Manufacturers contact can be found at: https://www.margma.com.my ordinary-members.
Under the Malaysian Law Act 551, the Malaysian Rubber Board (MRB), or known as Lembaga Getah Malaysia (LGM) is the authority to issue licenses to manufacturers, traders, importers and exporters of rubber gloves. Companies that operate without MRB licenses will have to face enforcement actions by MRB.
The MRB is working diligently together with the Malaysian Rubber Council (MRC) and MARGMA to step up its surveillance and monitoring of such nefarious activities and will spare no one caught in this scam which is bringing shame to our country and damaging to the industry. We are serious and are working closely with the authorities to clamp down hard on those scammers and con artists and to have the Police prosecute them severely. In the meantime, MRB will be tightening the issuance of glove export licenses and will carry out raids and spot checks on existing license holders.
Recently, the Malaysian Rubber Board (MRB) had taken actions against a few companies that had traded rubber gloves without license. All MARGMA members have been instructed to report to the Ministry of Domestic Trade and Consumer Affairs to deal with trademark infringements as well unauthorised use of the manufacturers brands. On that note, offenders have been charged in the courts. Just as the demand for gloves has reached historical proportions, the Rubber Glove Industry is doing its best to produce as many gloves as possible while battling the demand and supply of raw material and human capital situations and not forgetting the needs to be compliant to the new COVID-19 Movement Control Order and Standard Operating Procedures.
MARGMA wishes to assure the authorities and the world that our Members are constantly upgrading and building new hostels to ensure a liveable and conducive atmosphere is provided for the workers. As upgrading work is an on-going process that may take sometime, we plead for understanding of some space and time for those under-going the process to carry through this exercise in order to meet Act 446 (Amendment).
It should also be noted that seeking new premises to house a large number of workers is quite a big task and extremely challenging. Members are seeking landlords who are willing to rent out their premises to house these workers and MARGMA is engaging with the relevant Ministries to seek their assistance and understanding on this matter.
MARGMA is expecting the export revenue to be RM29.8 billion for year 2020 with global demand estimated to reach 360 billion gloves. As for 2021, MARGMA projects an annual demand growth rate of around 15%-20% moving forward with projected export revenue to be RM34 billion in 2021 with global demand set to hit 420 billion pieces of gloves.