Economics
COVID-19 increased global demand and export for medical gloves in Thailand and Malaysia
COVID-19 pandemic has generated high demand for medical gloves. Malaysia is globally the biggest producer of medical glove with production capacity of 125,000 million pieces per annum.
As one of Thailand’s leading export products, rubber glove generated approximately USD 1,200 million per annum. COVID-19 global pandemic is Thailand’s golden opportunity for rubber glove export. During the first 4 months of 2020, export value increased to USD 449 million, an increase of 16% from the same period in 2019.
COVID-19 pandemic has generated high demand for medical gloves. Malaysia is globally the biggest producer of medical glove with production capacity of 125,000 million pieces per annum. In 2019, Malaysia’s actual production was 63,000 million pieces, reflecting the advantage in increasing production capability.
Thailand’s production capacity is 25,000 million pieces per annum and in 2019, the actual production was 85% of total production capacity. EIC noted that if these 2 countries were to increase their medical glove production capability to the fullest, Malaysia would benefit more than Thailand.
Thailand still has indirect benefit from the increasing export of concentrated latex to Malaysia for medical glove production. During the first 4 months of 2020, export of concentrated latex from Thailand to Malaysia was USD 176 million, an increase of 7% from same period in 2019. With the continuation of COVID-19 pandemic, it is most likely that Malaysia’s demand for Thai concentrated latex will continue.
Malaysia produces natural rubber glove, a high value-added product, with imported concentrated latex from Thailand, a mid-stream product with very little added value. It is an economic lost to Thailand due to the insufficient product transformation into value-added products of concentrated latex.
Therefore, government sector must increase the support in R&D of rubber glove production and enhance up-stream operators who produce concentrated latex to operate in down-stream products like rubber glove. In addition, government sector should encourage foreign direct investment to improve efficiency in production technology which will increase rubber glove production capability as a whole and build a stronger value-added economy for Thailand.
Author: Kanyarat Kanjanavisut
Economics
Thailand relaxes COVID-19 measures to help revive economy
During the past couple weeks, new infection cases have been down from roughly 20,000 daily cases to 17,000 -19,000. Moreover, the number of daily discharges is exceeding infections, which has led to the conclusion that the situation is improving.
Thailand relaxed more virus related social curbs on September 1st, in dozens of cities including Bangkok, in a move that may indicate that the country’s economy, hit hard by COVID-19 will soon revive, lead by the export sector and sound financial fundamentals.
(more…)Economics
Southeast Asia to relinquish its lead over Latin America says Moody’s
While the emerging economies of Southeast Asia have outperformed their counterparts in Latin America for most of the past two decades, their lead will slide in the next few quarters as Southeast Asian governments clamp down to fight the pandemic’s lingering second and third waves.
The Delta surge is casting larger clouds over the global recovery and emerging markets are in the thick of it. Despite the ebbing of the coronavirus variant in India, where it first emerged, its spread in Southeast Asia, Africa, and the Middle East has steepened the road to recovery in these regions.
(more…)
Thailand Raises Public Debt Ceiling from 60% to 70% of GDP
Thailand’s State Monetary and Fiscal Policy Committee has decided to raise the ceiling of the public debt-to-GDP ratio from 60%...
Thailand Approves Package to Attract Wealthy Foreigners and Professionals
Thailand’s Cabinet has approved an economic stimulus and investment promotion package aimed at attracting wealthy foreigners and highly skilled professionals...
The Role of Telemedicine Today: During and Beyond the COVID-19
Lockdowns, quarantine periods, and hospitals fast filling to the brink needed the medical community to come up with solutions fast....
Malaysia, Thailand banks to join the ASEAN Banking Integration Framework
Banking institutions from Thailand and Malaysia are invited to join the ASEAN Banking Integration Framework and indicate their interest to...
Climate Change Could Force 49 Million People to Migrate in East Asia and the Pacific
Out-migration hotspots in agricultural areas of central Thailand and Myanmar coincide with areas expected to see declines in both water...