Top Glove May Shift Next Major Investment to Thailand Amid Malaysia’s Foreign Worker Constraints

Malaysian rubber glove manufacturer Top Glove Corporation Bhd may direct its next major expansion towards Thailand as restrictions and challenges involving foreign workers in Malaysia increasingly influence investment decisions. The company currently operates two factories in Thailand with a combined annual production capacity of eight billion gloves.

It is targeting an additional six billion pieces of annual capacity by the end of financial year 2027. Despite the potential overseas shift, Top Glove retains significant production resources in Malaysia, including approximately 23 billion pieces of dormant annual capacity that could be reactivated with relatively modest upgrades.

Labour Productivity and Premium Glove Demand Support Top Glove’s Recovery Plans

The company’s improving labour productivity and growing cleanroom glove business could strengthen its competitiveness. CGS International Research noted that Top Glove had reduced its labour requirement from four employees per million gloves produced in 2016 to 1.6 in 2026. Its cleanroom gloves also command higher selling prices, although they currently represent only around 5% of sales volume.

CGSI expects Top Glove’s normalised net profit to increase from RM377.3 million in FY2026 to RM525.3 million in FY2027. However, higher labour costs and stronger competition from Chinese manufacturers remain key risks.

Top Glove is considering Thailand for future expansion as Malaysia’s foreign worker constraints shape its investment strategy.

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