by ANIS HAZIM / pic TMR FILE
HARTALEGA Holdings Bhd said it will adjust its gloves’ average selling prices (ASPs) to remain competitive in the market.
CEO Kuan Mun Leong (picture) said the group, however, is operating its “business as usual” despite the adjusting prices.
“We adjust prices monthly according to several elements, one of which is that we take into consideration the movement of foreign exchange (forex) rates,” Mun Leong told a press conference after Hartalega’s AGM today.
He said the group will continue adjusting its prices whether the US dollar is strengthening or weakening.
“We have a very disciplined hedging policy. We do not do a lot of forward hedging or a lot of forex contracts,” he said.
Hartalega chief business officer Kuan Mun Keng said the Chinese glovemakers are selling gloves below US$20 (RM89.63) compared to the Malaysian glovemakers of above US$20 for 1,000 pieces.
“The price adjustment has been ongoing since the middle of 2021 when we moved to the endemic phase.
“We are also reacting to the market and what we do not want to see happening is for Malaysian companies, especially Hartalega to lose market share so we will definitely remain competitive,” Mun Keng said.
On its long-term view, Hartalega foresaw that global hygiene awareness and glove usage is expected to be on the rise in the post-pandemic era.
“Against this backdrop, we will continue to be attuned to market supply and demand dynamics as we progress in our strategic expansion plans,” added Mung Leong.
To note, the glovemaker is expanding on its Next Generation Integrated Glove Manufacturing Complex 1.5 plant to cater for the market demand.
“This will be completed in phases and will be adjusted accordingly in line with evolving market conditions,” he said.
However, he noted that the group is slowing down its expansion on the back of market competition which puts further pressure on the oversupply situation in the global glove sector.