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prices ( ASPs ) subdued . In addition , it also experienced reduced production utilisation and higher operating costs , such as energy and labour costs .
Hartalega said that in the face of the glove sector ’ s “ enormous and unprecedented challenges ”, the Group cannot sit idle and will embark on a five-year strategic plan to ensure longterm business sustainability — which began with the Bestari Jaya facility ’ s decommissioning and consolidating operations at its Next Generation Integrated Glove Manufacturing Complex ( NGC ) in Sepang .
The decommissioning of the Bestari Jaya facility – which comprises four production plants , some of which have been operational since 2004 – is expected to be completed by end-2023 . Once the exercise is completed , Hartalega expects a reduction in operating costs , thus improving the Group ’ s overall competitiveness . Further , by leveraging the NGC ’ s advanced technologies and manufacturing processes , Hartalega is confident that it will be well-positioned to cater to long-term demand growth during this challenging period .
The Group is focused on implementing prudent cost optimisation measures , strengthening operational efficiencies , and scaling up automation across all its operations . The glove maker will continue to focus on enhancing its sustainability and social compliance practices as part of its agenda .
The Group ’ s executive chairman and founder is Kuan Kam Hon @ Kwan Kam Onn , the largest shareholder with a 43.25 per cent stake , held via Hartalega Industries Sdn Bhd and Budi Tenggara Sdn Bhd .
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4 . KPJ Healthcare Berhad Market cap : RM4.9 bil KPJ Healthcare Berhad opened its doors to the public in 1981 as Johor ’ s first private specialist hospital . Today , with a market capitalisation of RM4.9 billion , KPJ is the largest hospital group . It offers a wide range of specialised healthcare solutions in more than 29 specialist hospitals nationwide and a sizeable share in a hospital in Bangkok and Bangladesh . It treats more than three million patients annually .
KPJ also operates senior and assisted living care centres in Kuala Lumpur , Kuantan and Sibu in Malaysia and Brisbane , Australia , offering short- and long-term care and healthcare education .
In March , the healthcare provider – through its subsidiaries Crossborder Aim ( M ) Sdn Bhd ( CAMSB ) and Crossborder Hall ( M ) Sdn Bhd ( CHMSB )– entered into a deal with PT Nusautama Medicalindo for the divestment of its Indonesian hospital operations Rumah Sakit Medika BSD . The proposed disposal involves the sale of its 75 per cent stake in the hospital operating company PT KPJ Medica ( KPJM ).
The SSA is expected to be completed by the second quarter of 2023 . Earlier this year , the Group exited its other Indonesian hospital operation , Rumah Sakit Medika Permata Hijau , where the
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process will be concluded by the second quarter of 2023 .
The disposal is part of KPJ ’ s asset rationalisation exercise arising from the challenging business environment , licencing and regulatory requirements imposed by the Indonesian government on foreign operators like KPJ . This disposal also marks KPJ ’ s exit from operating specialist hospitals in Indonesia to enable KPJ to realign its strategies and focus on managing specialist healthcare facilities in Malaysia .
For 2023 , the healthcare service operator has allocated capital expenditure ( CAPEX ) of RM500 million . The capex includes the construction of a new hospital in Kuala Selangor , slated to open in early 2024 . It also upgrades existing hospitals , buys new equipment , and manages data infrastructure .
The Group plans to recruit more consultants with subspecialties and surgeons and expand niche services such as neurology and stroke , oncology , cardiac , orthopaedic and women and child services . KPJ will also launch the KPJ mobile app , allowing for closer engagement between physicians and patients through patient-centred therapy , tailored experiences and information exchange .
Meanwhile , KPJ is optimistic about the health tourism business in 2023 , given its strong rebound in 2022 . Thus , KPJ will continue to aggressively promote its services to international markets , including target markets such as Indonesia , Indo-China , Singapore , the Middle East , and North Africa .
State-owned Johor Corporation is the major shareholder of KPJ , with a 35.4 per cent stake . KPJ ' s chairman is Datuk Md Arif Mahmood .
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5 . Kossan Rubber Industries Berhad Market cap : RM3.7 bil KOSSAN Rubber Industries Berhad is one of the largest manufacturers of disposable latex gloves globally , with an annual production capacity of 33.5 billion pieces . Kossan Rubber was listed on the main board of Bursa Malaysia in 1996 , and its current market capitalisation is RM3.7 billion .
Incorporated in 1979 , Kossan ’ s business model is anchored in three main lines of business – technical rubber products , disposable gloves and disposable cleanroom products . It is Malaysia ’ s largest technical rubber products manufacturer , with a total compounding capacity exceeding 10,000 metric tonnes .
The Group expects its performance for the current financial year ending Dec 31 , 2023 to be severely challenging due to the headwinds affecting the glove sector . It retains a cautious outlook , conscious of the potential for further market shocks . Kossan has therefore placed its near-term expansion plans on hold in line with the prevailing market conditions .
“ Beyond the near-term , global glove demand is expected to remain on a growth path due to a shift in glove usage due to higher healthcare standards and
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hygiene awareness in both the medical and non-medical sectors ,” the glove maker said in a filing to Bursa on Apr 27 . It added that emerging economies with low per capita consumption would drive glove demand in the long run .
Kossan will continue to focus on effective cost management and specialised products that meet specific requirements while accelerating the transformation into digitalisation and automation across its operations to increase productivity and efficiency and lower production costs .
As for the sector ’ s future , it sees an evolution in the glove landscape towards specialist products that meet the hygiene and protection needs and regulatory requirements of specific industries and applications . The Group will invest more in its research and development capabilities to meet these needs and launch a wider range of glove products .
As part of Kossan ’ s commitment to sustainability and environmental , social and governance ( ESG ), it launched Malaysia ’ s first Greening Value Chain ( GVC ) programme on Mar 27 .
The GVC programme is an initiative by Bank Negara Malaysia ( BNM ) in collaboration with financial institutions and strategic partners . It aims to assist small and medium-sized enterprises ( SMEs ) in decarbonising and greening their operations , aligning with the global race towards achieving net zero emissions .
Founder Tan Sri Lim Kuang Sia is Kossan ’ s Group managing director and CEO . Lim and his family are the controlling shareholders , with a 49 per cent stake held via their investment vehicle Kossan Holdings ( M ) Sdn Bhd .
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6 . Supermax Corporation Berhad Market cap : RM2.4 bil SUPERMAX Corporation Berhad was established in 1987 as a trading business to distribute latex gloves and eventually ventured into manufacturing latex gloves in 1989 . Today , Supermax has become one of the leading international manufacturers , distributors and marketers of high-quality medical gloves , with 11 manufacturing plants in Malaysia .
It has eight distribution centres cum corporate offices based in the US , Brazil , Canada , Germany , United Kingdom , Hong Kong , Singapore and Japan . Supermax ’ s market capitalisation is RM2.4 billion .
Supermax Group produces up to 24 billion pieces of gloves annually , meeting approximately 12 per cent of the world ’ s demand for latex examination gloves . It exports to over 165 countries worldwide , including the US , the European Union , the Middle East , Asia and South Pacific countries .
The stiff competition in the glove market is also seeing newer and existing smaller players exiting while many existing manufacturers have also scaled down or stopped completely their capacity expansion plans , and some even have taken the opportunity to shut down the older plants or production lines that
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are no longer efficient . However , Supermax is gearing itself up to take advantage when the market inevitably moves up after this lengthy post-pandemic consolidation phase . It has shut down a few manufacturing plants and some older , less efficient production lines in some other plants .
It will continue to put up the building structures for six new blocks that were built between 2020 and 2023 . They have a combined capacity of 16.8 billion gloves per annum .
On its prospects , Supermax expects productivity , competitiveness and profitability to improve along with a drop in unit per cost . The glove manufacturer plans to replace old production lines with high-capacity , high-efficiency lines while maintaining the existing workforce in redeployment to new plants .
According to Supermax , the construction of its US-based manufacturing facility in Texas is also underway . It is very much in response to the steps taken by an increasing number of countries , including the US , which are taking steps to re-shore or shore up domestic production to ensure the security of supply , especially in times of crisis .
Supermax is headed by its executive chairman Datuk Seri Stanley Thai Kim Sim . He and his wife , Datin Seri Tan Bee Geok , are the largest shareholders , with a 38.4 per cent stake held via Supermax Holdings Sdn Bhd . Both are also founders of Supermax .
Recently , the company hit the headlines when Thai ’ s daughter Cecil Jaclyn Thai resigned from the board , alleging that she had experienced bullying and silencing from other members . The company responded and refuted this .
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