Smooth sailing for rubber gloves

Good demand: Latex gloves on hand-shaped molds move along an automated system on the production line at a Top Glove factory in Setia Alam. Analysts expect demand for rubber gloves to expand by 8-10 backed by the increase in healthcare expenditure particularly in Asian countries. – Bloomberg

THE rubber glove sector should continue on its smooth-sailing path driven by robust earnings outlook, given that capacity in the sector is still below market demand.

Also, the sector will continue benefiting from a strengthening US dollar as sales are denominated in the currency while only half of its production costs are US dollar denominated.