PETALING JAYA: Despite the unsettling mid-April 2026 winding down of WRP Asia Pacific Sdn Bhd’s operations, MBSB Research remains cautiously optimistic about the glove sector.
WRP, a key player in healthcare and glove sectors, said its decision was due to the severe disruptions in the global energy and petrochemical supply chains, precipitated by the United States and Israel’s war on Iran.
The Human Resources Ministry confirmed that a liquidator was appointed to manage the company’s closure while the WRP management noted that it is awaiting shareholders’ feedback and that potential buyers could still emerge to take over the assets.
MBSB Research, in a note to clients said WRP’s closure highlights the pressures currently facing the Malaysian glove industry.
While demand surged during the pandemic, the subsector is now grappling with oversupply issues and extreme volatility in raw material costs, forcing several large companies to hike selling prices for their products.
“However, the impact of the current climate on larger glove manufacturers is expected to be both alarming and an opportunity.
“While smaller players are strained, larger players are actively navigating the shift in the global supply and demand,” the research house explained.
While WRP’s closure may be alarming, MBSB Research said: “Opportunities remain for other players to either revise their operational strategies to mitigate the domino effect of the supply chain disruptions or take the opportunity to fill in the supply and demand gaps left by WRP.”
However, the root of the issue, namely, the volatile oil and petrochemical prices, remain a big obstacle for certainties for glove players, in term of the sustainability of raw material costs and supply in the long run.
Of the major glove sector players under its coverage, MBSB Research said Kossan Rubber Industries Bhd
and Hartalega Holdings Bhd are expected to face low-to-moderate vulnerability against the current shift in landscape.
Top Glove Corp Bhd is also recovering financially, the research house added.
MBSB Research has “buy” calls on Kossan with a target price of RM1.37, Hartalega at RM1.19 and Top Glove at 78 sen.
Meanwhile, on whether a rescue strategy for WRP is possible, an analyst with a local brokerage said “in a scenario where WRP can be saved from liquidation, shareholders would need to pivot to a corporate rescue”.
Assuming the race against time is not an issue, a merger and acquisition could offer benefits.
The analyst noted that WRP’s most valuable intangible assets are the DERMAGRIP and PROFEEL trademarks.
Even if the factory stops, saving the intellectual property allows the business to survive through outsourcing production to other factories, while keeping the WRP brand alive.
However, in the current circumstances, it would likely be an asset acquisition instead of a full corporate merger.
The asset acquisition could prevent a total fire sale for WRP, especially its specialised machinery for their unique surgical glove lines.
An acquisitor could also negotiate partial payment with WRP’s creditors, easing the liquidation.
Considering all options, the analyst said that the realistic rescue scenario would be the complete liquidation of WRP, followed by sales of WRP’s machinery and brands at a discount, without taking on the company’s historical debts or labour liabilities.
Nevertheless, following its impending liquidation, any signs of a shift from industry consolidation for the major players have yet to be seen.
Globally, the glove industry is undergoing its own recalibration as post‑pandemic demand normalises, production shifts across Asia, and manufacturers contend with the same energy‑linked cost volatility now hitting Malaysian players.
Capacity expansions in China and Thailand have intensified competition, while buyers in the United States and Europe continue to push for lower prices and stricter compliance standards.
With geopolitical tensions disrupting petrochemical supply chains and raw‑material markets remaining unpredictable, industry analysts expect consolidation and selective restructuring to continue worldwide.
