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COVID-19 gives rise to new billionaires in Malaysia

COVID-19 gives rise to new billionaires in Malaysia

According to the law of demand and supply, the surge in demand triggers the rise in supply. As the COVID-19 pandemic has been wreaking havoc on the whole world, two new billionaires have emerged in Malaysia thanks to the booming demand for rubber gloves. On the one hand, it is not surprising since Malaysia produces about 65% of the world’s supply of rubber gloves, and both billionaire newcomers are involved in producing this protective gear. Thus, the revenue of Thai Kim Sim, the founder of Supermax Corp, has skyrocketed amid the jump in demand. Other latex gloves manufacturers such as Top Glove and Hartalega have also benefited from the pandemic. Their shares rose by 223% and 113% respectively. Yet, Supermax Corp’s success is particularly notable as the company saw a fivefold increase in value this year: its stock price soared by 394%. The company produces 24 billion gloves annually and is now planning to expand this amount to 44 billion by 2024. While most analysts are positive about the prospects of Supermax, others warn against rushing to buy the company’s stocks. They say that Malaysian glove makers may face competition from such countries as China should it expand its production.


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