Hartalega Holdings Bhd chairman Kuan Kam Hon.
KUALA LUMPUR : US tariffs are providing support to Malaysian businesses and reshaping the glove market’s dynamics, says Hartalega Holdings Bhd
chairman Kuan Kam Hon.
The lower tariffs on Malaysian goods, compared with higher duties imposed on China, are giving local businesses a competitive edge particularly for the glove producer.
Hartalega recorded an improved performance for the financial year ended March 31, 2025 (FY25), posting a net profit of RM74.5mil against RM12.5mil during the previous year. The group reported an increase in revenue to RM2.59bil for FY25 compared with RM1.84bil in FY24.
Hartalega’s net profit for the first quarter ended June 30, 2025 (1Q26) amounted to RM12.6mil while revenue was RM553.1mil, compared with RM31.9mil and RM583.8mil, respectively in 1Q25, representing a softer performance for the group.
The nitrile glove producer stated that the performance was mainly due to lower average selling prices and reduced sales, following front-loaded inventories by US customers due to tariff uncertainties as well as deferred orders.
In addition, non-US markets faced heightened price competition from Chinese producers, while a stronger ringgit, lower capacity utilisation and rising operating costs had weighed on margins.
The group noted positive signs of recovery in global demand, with glove consumption in 2024 exceeding pre-lockdown levels by more than 25%.
“Structural demand remains strong, supported by growing global healthcare needs and heightened hygiene awareness.
“For 2025, glove consumption is projected to hover at the Covid-19 level, which is a clear sign that market demand is growing,” Kuan told a press briefing here yesterday.
He added, global glove demand is projected to reach about 370 billion pieces in 2026 – a level comparable to consumption during the lockdowns.
Addressing the glove oversupply situation caused by overbuilding from the lockdowns, the group said it was working around the challenge by reinvesting heavily in upgrading production technology.
Hartalega chief executive Kuan Mun Leong said: “The improvement in production reflects the group’s continued focus on operational efficiency, prudent cost management and disciplined execution of its long-term strategy”.
He added that the group was keeping its focus on strategic priorities to drive sustainable long-term growth as well as upholding environmental, social and governance standards.
Hartalega aimed to enhance production efficiency, accelerate automation, optimise costs and sharpen sales approach for its long-term growth.
Separately, Hartalega reported that over the past four years, it had paid over RM2bil in taxes, with substantial tax payments made from FY21 to FY22 during the Covid-19 pandemic.
