When
Bill Gates first actively went around the world promoting the
development of vaccine research and spent much of his wealth raising
awareness, there is the lack of attention given by the general public.
However, with the Covid-19 pandemic, everyone started to call Bill Gates
a visionary. His Ted Talk 5 years ago titled "The Next Outbreak"
chalked up close to 33 million in views today with the explosion
happening only when Covid-19 erupted in 2020. Feel free to watch it here
:
The
argument can be said to be the same for Glove makers. Some 30 years
ago, glove manufacturing was not what it is today. Glove manufacturing
is an extremely tough, competitive and difficult industry earning only
meagre margins as the bulk of the profits are taken by glove
distributors abroad. Your big names like Cardinal, Ansell, Kimberly
Clark and many others. The Malaysia glove industry came about because of
the natural rubber / latex supply due to rubber plantations in the
country. The access to raw materials as well as some level of
manufacturing capability led to these savvy entrepreneurs to pivot from
using Latex or Natural Rubber for tyres to new products like rubber
gloves. Some saw the opportunity with the heightened awareness due to
AIDS pandemic abroad. For many years, Malaysia glove makers sweat and
toil being the "sweat shop" / OEM for foreign distributors, hospitals
and government. Fast forward to today, the Glove industry have improved
leaps and bounds, most importantly, Malaysia has become a world leader
that controls the supply of gloves in the world with an estimated 67% of
global market share. From 1980s till today, there were 250-300 glove
manufacturers then, now there are only 45 world class players in the
country.
Manufacturing
as an industry itself relies on productivity, cost efficiency and
economies of scale to achieve cost optimisation in order to be become
profitable. It is extremely hard to achieve that because most
manufacturers will get pressed by their distributors or clients.
Manufacturers are the lowest cost centre in the entire supply chain.
Majority of the glove makers in Malaysia are run by family owned
companies, very few by large MNC. This is because manufacturing is a
hands on, laborious, 24/7 long hours complex operation. A machine
breakdown or an electricity blackout for 1 day can easily wipe out the
potential profits for the entire month. If
not for this global pandemic, glove manufacturers would be extremely
happy with a commendable high single digit to low double digit profit
margin.
I
think most readers would know some of the things mentioned above by
now, apologies for being long winded, but why am I repeating this? The
reason I am sharing this is because, I hope readers know it has been an
arduous journey for glove makers. This so called "windfall" or "stroke
of luck" as stated by some did not happen overnight. It was due to lots
of blood and sweat. It is
very easy to be envious when others are doing well in a tough time. It
is also very easy to condemn and criticise. Talk is cheap but that is
the reality of today's world. When we are suffering, we hope the world
suffers with us. This is because as human, we take solace in collective
suffering. If we are the only one suffering, we would feel very
depressed right?
Actually,
this is not the right mindset. In Chinese, there is this saying
"将心比心”。Loosely translated, it means having empathy and putting yourself
in others position. If you worked hard for all your life as an honest
entrepreneur, and you have done right for most part, is it fair to be
run down just because you are doing well today albeit with some flaws?
Don't get me wrong, I am not defending any company in particular but the
glove sector as a whole. In addition, there are many layers of problem
with regards to ESG, labour issue in our economic sector which most
people know about such as :
1. Foreign labour dependency is not a singular issue of the glove sector but majority of the sectors in Malaysia because locals are not interested in 3D jobs - dirty, dangerous, demeaning
1. Foreign labour dependency is not a singular issue of the glove sector but majority of the sectors in Malaysia because locals are not interested in 3D jobs - dirty, dangerous, demeaning
2.
Agency monopoly / cartels exists which control the supply of labour
between Governments (politicians) leading to exorbitant agency fees
imposed on foreign labours.
3.
Hypocrisy of foreign distributors and corporations that forces local
glove manufacturer to lower cost, compress margins in order to enjoy
profits on their end. (On one hand talk about ESG, on another hand press
the price of OEM manufacturers. This is not only applicable in the
glove sector but other industries too)
In
2014, I remembered our country's top national Badminton player was
embroiled in a doping scandal. This was when he was World No.1 and at
the height of his career. It was the worst possible scenario for any
athlete. I remembered back then, most Malaysians were skeptical whether
it was true. Eventually, our national hero was given 8 months ban due to
illegal substance Dexamethasone.
The point to note, our national Badminton shuttler wasn't aware and the
drug was not performance enhancing but for rehabilitation given to him
by those in charge of his care. He paid the price of the ban and came
back to competition including the 2016 Olympics where he nearly won our
country's elusive Gold medal. He said during his retirement press
conference, that his greatest honour was being able to play for the
country. I believe he was an exceptional talent. Those that comes in
generations or decades. However, the Malaysia badminton ecosystem have
always been able to nurture and support talents. This is because the
sport itself had the support of the government, association and the
people. If the media, government, associations back then chose to only
focus on sensationalism / populism without giving the benefit of doubt
and crucify him, he probably would not have the chance to rebound and
make it for Olympics. Also, imagine, the world's impression of
Malaysia's badminton when this doping incident exploded. Just because of
one doping case which was a mistake, does it mean all Malaysia's
badminton athletes are dopers?
Few
years ago, two former national shuttlers was banned for life for match
fixing. One was a promising young star who even won the world junior
championship. Due to the match fixing, he was banned for life. I felt
the punishment to be harsh as he was young and misguided by a senior
national shuttler. This boy trained his whole life to be a national
player (neglecting his studies), now that he is banned for life what can
he do next with such a long path ahead? People make mistakes, but
unlike our national hero's case, his matter was not given the same
benefit of doubt and a second chance. So,
what has this story got anything to do with glove makers? There are
many similarities in the varying ways some quarters of the media,
experts or commentators treat our Malaysia glove makers.
1. Because of the labour and ESG issue highlighted on a few glove makers, the entire glove industry was painted with a stroke of brush across the board as "forced labour industry"? Is that fair? How about those others glove makers who complied with all laws and regulations? Also, when we talk about forced labour, what about the other industries which are much worst? Why is the glove sector singled out? Is it because of the sky high profits they are making now? Have anyone been to the construction "kongsi" and plantation "estates"?
2.
Just because the Glove makers are finally doing well, some have been
loud to ask for windfall tax incessantly as it is a populist move. How
about the years when they were making losses and taking out substantial
loans, raising bonds for cashflow purposes? Where was the help? Also,
the taxes and levies they have paid over the years to government, jobs
created and capital investment made? Granted, MIDA have supported the
industry with promotion, patent application and other forms of
assistance. However, compared to other industries in our country, the glove sector predominantly was organically developed and grown by entrepreneurs of grit.
3.
An objective media shines light in darkness and brings justice to the
weak, it also condemns the powerful without fear or favour. I think the
role of the media is extremely hard and good journalism should be
respected. I have much respect for those who practice true journalism.
However, for those media who brings down the ethical standard and good
name of a free and impartial press in return of clickthrough or
viewership, readers ought to be discerning. The 2 examples below :
- News portal A decided to publish a letter from an anonymous contributor, referencing his friend (which is tantamount to hearsay) alluding that a glove manufacturer in the country lacks integrity and filled with hypocrisy. It is one thing to report a news with sources and keeping it anonymous to protect the identity. It is another to reproduce a letter by an anonymous writer referencing a friend. Isn't it a tad too much? If indeed the writer's friend went through grave injustice, there is the media and there is the law. The media cannot win your compensation, the law can. As a lawyer myself, I know for a fact we have robust industrial court that protects employees.
- News portal A decided to publish a letter from an anonymous contributor, referencing his friend (which is tantamount to hearsay) alluding that a glove manufacturer in the country lacks integrity and filled with hypocrisy. It is one thing to report a news with sources and keeping it anonymous to protect the identity. It is another to reproduce a letter by an anonymous writer referencing a friend. Isn't it a tad too much? If indeed the writer's friend went through grave injustice, there is the media and there is the law. The media cannot win your compensation, the law can. As a lawyer myself, I know for a fact we have robust industrial court that protects employees.
-News
portal B decided to conveniently attach the picture of glove
manufacturing to a "clickbait" title on FMM letter to
manufacturing sector warning of
disastrous outcome if the Covid-19 issue does not come under control.
FMM in the letter which I sighted, never once mentioned glove
manufacturers. So why did the news portal do this? Was it a genuine
mistake or a pre-conceived notion / generalisation to imply that
Covid-19 cases are all from glove manufacturers? Is this fair to other
glove makers who complied with all regulations and have no Covid-19
cases? How about the construction, electronics, furniture manufacturers
and others which had Covid -19 outbreak? If this is not coloured lens, I
don't know what is.
Yesterday, the government after conducting "Ops Glove" found that 90% of the glove industry players are compliant with the regulations and
laws. Which means those who are in violation are in the minority. Those
who violated and did not do enough, should pay the price and subject to
the repercussions of the law. Everyone deserve a chance to improve and
upgrade themselves failing which, they should be held accountable once
more. As
media reports on the flaws and failings of the glove industry, they
should also shower praise for those who done right by the law. They
should accord fair opportunity to hear both sides of the story instead
of relying only on Andy Hall, the activists who has his agenda. Trial by
media, shouldn't happen especially if sensationalism gets in the way of
true journalism. Lastly,
to be fair to all, apart from "Ops Glove", there should be other "Ops
Bina", "Ops Sawit", "Ops Petroleum" etc. That way, it is fair play to
all. Selective persecutions should not exist in
today's society and I look forward to news portals above to continue to
facilitate the role as the guardian of truth when the time comes.
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