Published 11:36 IST, August 18th 2020
Fifth billionaire emerges from Malaysia's glove manufacturing industry amid COVID
Wong Teek Son, who co-founded Riverstone Holdings Ltd, last month became the fifth billionaire in Malaysia from manufacturing gloves.
Wong Teek Son, one of the founders of Riverstone Holdings Ltd, became the fifth billionaire in Malaysia from manufacturing gloves. His current net worth is $1.2 billion as shares of his company rose almost six times from a low in March, thanks to the growing demand for protective products because of the coronavirus pandemic. On August 17, Riverstone shares dipped 13% in its worst week since March and slipped another 2.2% in Singapore after Russian President Vladimir Putin declared they have world’s first coronavirus vaccine for use, while Moderna Inc and Johnson & Johnson are among those reaching deals with the Russian government to supply vaccine shots. In the month of June Supermax Corp's Thai Kim Sim also became a billionaire as his company's stock soared 394% this year. Companies making rubber Glove, Hartalega, and Kossan also gave three other billionaires.
Malaysia is a leader in rubber gloves manufacturing. It manufactures around 65% of the world’s supply of rubber gloves and according to an estimate by the Plantation Industries and Commodities Ministry, exports will climb 45% this year. According to international media reports, Riverstone peers Top Glove Corp and Hartalega Holdings are now among the five most valuable companies on Malaysia’s equity benchmark index. Their shares have jumped more than 192% this year, lifting the net worth of their billionaire founders. The glove industry came into controversy last month when the United States barred imports of the products from two Top Glove units because of reasonable evidence of forced labor in the units. On the other hand world’s largest glove producer is in talks with the United States to settle this matter.
Malaysian Economy Shrinks
Coronavirus pandemic brought fortune for the protective gear industry of Malaysia, but on the other hand, Malaysia has reported a dip in economic growth and it contracted 17% in the last quarter in its worst downturn since the global financial crisis. The central bank said the real rate of annual growth was 16.5% in the April-June quarter, down from a 2% contraction in the first quarter of the year. Business shutdowns, travel restrictions, and other measures to help contain outbreaks of the new coronavirus took a heavy toll. The central bank said, however, that key indicators such as exports, industrial output, and consumer spending began to bounce back in May as pandemic-related restrictions were eased. It is forecasting a contraction for the full year of minus 3.5% to minus 5.5%. It expects the economy to resume expansion in 2021, growing between 5.5% and 8%.
Updated 11:36 IST, August 18th 2020