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KUALA LUMPUR: Malaysia’s Top Glove, the world’s largest manufacturer of rubber gloves, said on Wednesday (Nov 25) that supply disruptions at its factories due to a COVID-19 outbreak may drive up glove prices. .
The company said it has closed 20 of its factories in an area outside of Kuala Lumpur in stages since Nov. 17 after nearly 3,000 workers tested positive for the coronavirus, and another eight facilities in the same area operate below 20 per percent of its capacity.
“Of course, there is a shortage, as Top Glove is a great supplier in the world. Supply will definitely be affected in some way … there is a possibility that glove prices will increase, “CEO Lim Wee Chai said at a virtual press conference.
Chief Security Minister Ismail Sabri Yaakob said in a briefing on Wednesday that Top Glove is now the largest contributor to COVID-19 cases in the country.
So far, a total of 2,684 cases have been linked to Top Glove, it added.
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The company, which accounts for about a quarter of global supply, has said it expects two to four weeks of delays on some deliveries and has estimated a 3% impact on projected annual sales for fiscal 2021.
Managing Director Lee Kim Meow told the press conference that there have been no order cancellations so far. He said hospitals and essential services will be prioritized amid the shortage, and expressed confidence that the problem will be resolved quickly. Top Glove produces around 90 billion rubber gloves a year and exports to 195 countries.
The Klang area where Top Glove factories and worker shelters are located is currently the busiest in the country, with 4,036 cases of coronavirus. The Health Ministry said the cases have spread from factories to the wider community. Malaysia has reported a total of 58,847 cases, including 341 deaths.
The company said about 6,000 workers have been screened and a few thousand more will undergo testing later this week.
Lim dismissed concerns about contamination, saying workers do not have direct contact with gloves, production lines are fully automated, and high heat in the ovens would kill the coronavirus.
He said his team was caught off guard by comments from Human Resources Minister M. Saravanan that checks so far revealed “deplorable” conditions in workers’ homes.
“I have visited the shelters and the conditions are terrible. My officers were ordered to go with all their might as this is a large and vulnerable colony of migrant workers. If we don’t act, this group could spiral out of control, “Saravanan told a local newspaper this week. An aide to the minister confirmed his comments to The Associated Press.
Lim said he was puzzled why the minister changed his mind because he had given his approval during a visit to Top Glove factories a few months ago.
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“Since the minister’s visit, our housing conditions have continued to improve … because we invested more money to improve the facilities and we want to do it quickly. So it was a big surprise when such comments were made, “he said, adding that the company will seek clarification.
Top Glove has more than 11,000 workers in the 28 affected factories in Klang. The company has said it has invested millions of dollars in recent months to improve housing facilities and ensure strict health measures were followed to curb the spread of the virus.
It employs a total of 21,000 workers in its 41 factories in Malaysia and six other facilities in Thailand, Vietnam and China.
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