Asian Property Review talks to Mah Sing’s Founder & Group Managing Director, Tan Sri Dato’ Sri Leong Hoy Kum on its new plans to adapt to the new normal.
In the event an effective Covid-19 vaccine is found, how would this impact Mah Sing’s plans for a glove manufacturing facility?
Our new venture would not be affected as we believe the prospect of glove manufacturing is still promising after the pandemic, underpinned by stricter regulations and the increase in awareness of the importance of hygienic practices.
According to a RHB Investment Bank’s report dated 19 November 2020, a deployment of COVID-19 vaccine could be a new demand source for gloves, possibly up to 18 billion pieces per annum, having assumed that 60% of the world’s population of 7.5 billion people would get the vaccine in two doses annually.
As each contact with a person would lead to the usage of one pair of disposable gloves, a vaccine development will generate demand of 18 billion pieces per annum in the short term, and that the demand will recur on an annual basis if the vaccine protection period is only up to a year. This is equivalent to 6.8% of the 263 billion pieces per annum global gloves demand in 2019. RHB Investment Bank opines that the long-term outlook remains positive.
According to Malaysian Rubber Glove Manufacturers Association (MARGMA), even before the Covid-19 pandemic, the rubber glove industry has also been growing at an average of 8% to 10% for the past 25 years.