Hartalega chief executive officer Kuan Mun Leong
KUALA LUMPUR: Hartalega Holdings Bhd
is hoping that the government would come up with a conducive business environment strategy that would enable players in the manufacturing sector to stay competitive in the global market.
Chief executive officer Kuan Mun Leong said the market players are in need of the government’s support to create a level playing field in the global market, in light of the ongoing challenging market environment.
"The current challenging landscape is expected to persist, with the normalising of average selling prices alongside the higher operating cost environment compounded by rising inflation and the recent implementation of the minimum wage policy.
"Additionally, the intense market competition is also putting further pressure on the oversupply situation in the global glove sector," he told reporters after the group's annual general meeting (AGM) here today.
Nonetheless, as a leading nitrile glove producer with a proven track record spanning more than 30 years, Kuan said the group is looking beyond the present needs to the future as it strives to deliver high-quality gloves for users worldwide.
He noted that global hygiene awareness and glove usage are expected to be on the rise in the post-pandemic era, particularly in emerging markets with relatively low per capita consumption.
"Against this backdrop, we will continue to be attuned to market supply and demand dynamics as we progress in our strategic expansion plans which will be adjusted accordingly in line with evolving market conditions,” he said.
Kuan added that the expansion will be driven by Hartalega’s next-generation glove manufacturing complex which will be completed in phases, emphasising that the group will continue to accelerate its automation and digitalisation efforts to enhance operational efficiency and cost optimisation.
Looking ahead, he said Hartalega will remain resilient, building on its future-focused approach to propel the group forward and deliver sustainable results.
During the AGM, the group proposed a final single-tier dividend of 3.5 sen per share for its financial year ended March 31, 2022, bringing the total dividend for financial year 2022 to 57 sen per share, amounting to a total payout of RM1.95 billion. - Bernama
