Budget 2027 To Strengthen Rubber Glove Sector’s Resilience, Transformation – MARGMA
By Danni Haizal Danial Donald
KUALA LUMPUR, Oct 14 (Bernama) -- Budget 2027 aims to strengthen Malaysia’s economic resilience, support industrial transformation and enhance workforce development in the rubber glove sector, said the Malaysian Rubber Glove Manufacturers Association (MARGMA).
Its president, Oon Kim Hung, said the association is encouraged by measures that promote automation, digitalisation, innovation and sustainable manufacturing, which are critical for maintaining Malaysia's competitiveness in an increasingly challenging global environment.
“MARGMA supports the government's efforts to accelerate the adoption of advanced manufacturing technologies, improve workforce capabilities and drive productivity growth.
“Continued investment incentives and automation support will be essential in helping manufacturers manage rising operating costs while remaining globally competitive,” he said in a statement today.
The rubber glove industry remains a significant contributor to the nation's economy, as one of Malaysia's major export-oriented manufacturing sectors, with exports exceeding RM7 billion in the first half of 2026, accounting for approximately 66 per cent of the country's total rubber product exports.
Oon said the association also welcomes efforts to strengthen the natural rubber ecosystem and improve the livelihoods of smallholders.
“Policies should continue to ensure the affordability, stability and competitiveness of natural rubber latex supply for downstream manufacturers, supporting sustainable growth throughout the value chain,” he said.
On Oct 9, Prime Minister Datuk Seri Anwar Ibrahim announced that the government has agreed to raise the rubber production incentive (IPG) rate for the third time for rubber smallholders. The rate will be increased to RM3.30 per kilogramme, benefiting more than 300,000 smallholders
Meanwhile, Oon said MARGMA calls for a review of industry-specific cost burdens, including the export cess on rubber gloves, to further enhance Malaysia's competitiveness.
He said reducing unnecessary costs would strengthen the industry's ability to attract investment, expand exports and maintain Malaysia's leadership in the global glove market.
“MARGMA also encourages continued government support in addressing international trade barriers and market access challenges faced by Malaysian exporters, ensuring a level playing field in global markets and strengthening the resilience of international healthcare supply chains.
“We stand ready to work closely with the Ministry of Finance, the Ministry of Investment, Trade and Industry (MITI) and other stakeholders to develop policies that encourage reinvestment, strengthen competitiveness and support the long-term growth of Malaysia's rubber glove industry,” said Oon.
-- BERNAMA