KUALA LUMPUR (April 3): The Malaysian Rubber Glove Manufacturers Association (Margma) has called on the government to consider "emergency support measures" to help the industry weather the impact of the sweeping new duties imposed by the US.

Citing Japan and South Korea, major auto exporters whose governments are indicating they may take emergency measures to support businesses hit by the higher tariffs, Margma president Oon Kim Hung said the Malaysian government should follow suit. Japan is facing a 24% reciprocal tariff from the US, while South Korea is facing 25%.

“The reciprocal tariff of 24% imposed by the US on Malaysia will undoubtedly impact various industries, including the glove sector," Oon told The Edge when contacted. "We hope both nations will uphold the spirit of free and fair trade to ensure jobs and economic growth for both countries.”

US President Donald Trump recently announced a 24% tariff on goods imported from Malaysia, effective April 9, as part of a sweeping trade policy affecting all its trading partners.

While the market is speculating that gloves might be exempted from the reciprocal tariff, Oon said he cannot confirm this, adding Margma is closely monitoring the situation.

"Just like India, where pharmaceutical goods are exempted, we believe Malaysian rubber gloves, which play a key role in providing quality healthcare equipment globally, will continue to meet the demand in the US market," he added.

On Thursday, Malaysian glove stocks rallied strongly following initial declines, as investors saw potential competitive advantages from the new US reciprocal tariff, which is lower for Malaysia than for China, home of most Malaysian glove makers' rivals.

Even with a 24% tariff on Malaysian gloves, the average selling price would still be lower by up to US$6 (RM26.66) per 1,000 pieces than Chinese-made gloves, according to Apex Securities. Malaysian manufacturers could retain a sizeable US market share of 45%-55% or higher, the house said. 

Hartalega Holdings Bhd (KL:HARTA), the world’s largest maker of nitrile gloves, surged nearly 12% to RM2.08 before paring some gains to settle at RM2.02, still up 16 sen or 8.6%.

Three other major listed glove makers on Bursa also rallied. Kossan Rubber Industries Bhd (KL:KOSSAN) jumped 9.8% to RM1.80, and Supermax Corporation Bhd (KL:SUPERMX) gained 8.4% to 77.5 sen, while Top Glove Corporation Bhd (KL:TOPGLOV) advanced nearly 5% to 84.5 sen.

These gains lifted the Bursa Malaysia Healthcare Index, which tracks 18 stocks, including pharmaceutical companies and medical products makers, by 2%.

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Malaysia hit with 24% US reciprocal tariff effective April 9 
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