Gloves are off as Malaysia’s strong ringgit bites into profits of world’s largest makers

South China Morning PostCenter-RightEN 1 min read 100% complete by BloombergJanuary 24, 2026 at 01:29 AM

AI Summary

short article 1 min

Malaysia's latex glove manufacturers, the world's largest, are experiencing reduced profit margins due to the strong ringgit. The rising value of the Malaysian currency against the US dollar is negatively impacting dollar-denominated earnings for exporters, including Top Glove, despite increased sales volume. The ringgit's strength, driven by Malaysia's economic growth, tech sector ties, and fiscal consolidation efforts, has made it Asia's best-performing currency, increasing over 10% against the dollar last year. Analysts predict the ringgit will continue to strengthen, further affecting the profitability of glove makers, as over 90% of their sales are in US dollars. This situation highlights the challenges faced by Malaysian exporters as the strong ringgit impacts their competitiveness.

Key Entities & Roles

Key Player Opposition Context

Asia 30% CIMB Securities 40% University of Reading Malaysia 50% Chun Sung Oong 50% Teck Yong Eng 60% United States dollar ×370% Top Glove 70% Ringgit ×680% Malaysia ×390%

Keywords

malaysian ringgit 100% latex gloves 90% profit margins 80% currency strength 70% exporter earnings 70% top glove 60% us dollar 60% economic growth 50% fiscal consolidation 40%