PETALING JAYA: Top Glove Corp Bhd
expects its running capacity to rise, driven by expansion in Thailand and continued automation efforts, as the Malaysian glovemaker works around labour constraints and volatile demand conditions.
According to joint managing director Ng Yong Lin, capacity expansion – particularly in Thailand – and ongoing automation efforts are set to drive a further 10% to 15% increase in running output by financial year 2027 (FY27).
“However, this is only an estimate, as we cannot be certain what conditions will be like next year,” he said at the group’s third-quarter briefing yesterday.
That said, Ng noted the company is already preparing and building up capacity accordingly.
“Even now, we are continuing to put in place the planned capacity expansions,” Ng said, citing the group’s ongoing expansion initiatives in Thailand.
He said expansion plans at the Thailand factories include an additional major block to install around 14 double-former lines, which is currently in the planning and execution stage.
“Thailand also gives us no constraint in terms of workforce availability, so a significant portion of our new expansion and lines will be based there.
“In addition, we benefit from an energy cost advantage in Thailand, where we use biomass instead of gas, which helps us better manage energy costs,” he said.
Top Glove executive chairman Tan Sri Dr Lim Wee Chai noted that ultimately, this direction is about efficiency.
“The market is always there and industry growth is around 10%. If we maintain our level of efficiency, capacity and sales can grow in line with that.”
Addressing concerns over labour shortages, management acknowledged that manpower constraints have delayed the reactivation of some factories, a challenge faced across Malaysia’s glove industry.
To mitigate the impact, the group has focused on de-bottlenecking production lines and improving operational efficiency, by running production lines at higher speeds while reducing downtime, breakdowns and wastage.
“We further supplement our workforce with contract and local workers where needed,” Ng said.
Management noted that many of the “low-hanging fruit” automation projects have already been implemented, and the group is now moving into the next phase of automation to further reduce manpower requirements and improve productivity.
Lim highlighted the progress made over the past six to seven years, adding that the number of employees required to produce one million gloves has reduced by half.
Looking ahead, the company said it will continue investing in automation and artificial intelligence across its production processes, process controls and broader operations to further enhance efficiency and address labour constraints.
Meanwhile, the group also cautioned that the October tariff revision could result in gas prices rising by around 40% compared with the previous quarter, potentially weighing on the group’s cost margins.
In the third quarter ended May 31, 2026, the group recorded a sales revenue of RM1.1bil and net profit of RM81mil, or earnings per share of 1.01 sen.
For the nine-month period, revenue grew 15% year-on-year to RM3bil, while net profit jumped 64% to RM151mil on the back of a 34% increase in sales volume.
The group attributed its stronger performance to prudent raw material management, particularly in securing a stable supply of nitrile latex amid recent supply disruptions, which enabled uninterrupted glove production and timely fulfilment of customer orders.
