Permaju Industries Bhd Is Turning From Developer To Glove Market To Meet The Global Shortage Of Gloves

Permaju Industries Bhd Is Turning From Developer To Glove Market To Meet The Global Shortage Of Gloves | Permaju Industries Bhd has incorporated a wholly-owned subsidiary, Permaju Glove Sdn Bhd (PGSB) to venture into glove manufacturing riding on the global shortage of gloves.

Permaju Industries Bhd Is Turning From Developer To Glove Market To Meet The Global Shortage Of Gloves

In a filing with Bursa Malaysia, last Friday, Permaju said PGSB is 100 percent-owned by the group and that it was incorporated on June 5, 2020. Permaju said the intended principal activity of PGSB is to manufacture, distribute, buy, sell and generally deal in rubber goods for industrial and commercial purposes.

"The rationale of the incorporation of PGSB is to facilitate the expansion of the business activities of the group and its subsidiaries,"

Permaju principal activities involved in motor vehicle trading and also the distributor of Volkswagen and Ford franchises. It also involved in property development and owns big parcels of land in Sabah and Seremban, Negeri Sembilan. 

Permaju Industries Bhd Is Turning From Developer To Glove Market To Meet The Global Shortage Of Gloves
Alam Puteri by Permaju

Permaju has more than 300 acres of land in Seremban that are suitable for property development or industrial activities. Permaju has been mulling to use the Seremban land to undertake various businesses, including property development projects but the plans did not materialize due to the challenging market conditions.  The group may use the land to construct a glove manufacturing plant for its new venture.

Permaju Industries Bhd Is Turning From Developer To Glove Market To Meet The Global Shortage Of Gloves

The glove manufacturing business in Malaysia is currently dominated by Top Glove Glove Corp Bhd, Supermax Corp Bhd, Hartalega Holdings Bhd, and Kossan Rubber Industries Bhd and they have seen a surge in demand since the emergence last December of the deadly novel coronavirus or Covid-19 in China. The Covid-19 outbreak has morphed into a global pandemic. More than seven million people have been infected and the virus has now claimed over 400,000 lives worldwide.  Malaysian glove makers supply almost two out of every three gloves globally.\

Permaju Industries Bhd Is Turning From Developer To Glove Market To Meet The Global Shortage Of Gloves

Last year, global demand for gloves was 290 billion pieces, of which 187 billion were supplied by Malaysia. The current global demand for gloves is more than 300 billion pieces, owing to the pandemic. Analysts who spoke on the condition of anonymity said that Permaju may emerge as the next big player in the market as it has strong investors' backing to take glove manufacturing to a higher scale.  They also believe that demand for gloves will continue to rise because of a shortage of gloves in major markets worldwide.