Glove factory shutdown affects earnings, helps global competitors

The temporary shutdown of glove factories will not only affect company earnings but could also jeopardise their relationships with overseas buyers, especially when Malaysian glovemakers are facing escalating competition from China’s glovemakers.

In a research note today, Maybank Investment Bank (Maybank IB) noted that Top Glove, Hartalega, and Kossan suspended the operations of their respective glove manufacturing facilities in Selangor on Tuesday due to the enforcement of the enhanced movement control order (MCO).

The investment bank said it was taken aback by...