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COVID-19 outbreak in Malaysia halts major PPE manufacturer

World News
25 November 2020 06:43 (AEST)

Executive Chairman of Top Glove Lim Wee Chai. Source: Financial Times

Top Glove, the world’s biggest rubber gloves producer, is screening and quarantining employees after a COVID-19 outbreak in its workforce.

The Malaysian company operates just under 50 factories throughout Asia, in countries including Malaysia, Thailand, China, and Vietnam. Many of its Malaysian glove-making facilities are located around Meru, a town west of Kuala Lumpur. 

Malaysia’s Government has recently reported a sharp increase in coronavirus cases in this area, where Top Glove factories and dormitories are. Out of 5,767 workers who underwent testing, approximately 2,453 employees tested positive for COVID-19.

As such, the Government has ordered a staggered closure of the company’s facilities, in order to continue screening and quarantining. This has caused Top Glove to temporarily stop production at 16 of the 28 Malaysian glove-making factories.

The 12 remaining facilities are operating at significantly reduced capacities, but will also go into lockdown in the next phase.

Malaysia makes just under two-thirds of the world’s rubber gloves, with Top Glove responsible for roughly a quarter of the global latex glove market. 

The COVID-19 pandemic has caused record demand for Top Glove’s gloves and protective gear this year, resulting in sky-high profits for the company. In fact, the company’s shares have more than quadrupled in 2020, as a consequence of the virus. 

However, the government-imposed lockdown of its factories caused the company’s shares to drop somewhat on the Malaysian Stock Exchange. The shares fell by as much as 7.5 per cent, although they later regained some of the lost ground.

In a statement, the company commented on its response to the pandemic outbreak in its workforce.

“We are committed to proceed with the COVID-19 screening test for the balance [of] workers and staff of our factories in Meru,” Top Glove stated.

“The safety and wellbeing of our employees and local community is our utmost priority towards containing the situation and to flatten the COVID-19 curve,” the company added.

However, Top Glove has not commented on the possibility that its glove products may have been contaminated by infected workers.

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