Another new player in glove manufacturing is Bursa-listed Mlabs System Bhd.
We hear that Mlabs will be working in partnership with an existing glove maker who is seeking expansion to meet global demand for medical or nitrile gloves due to the Covid-19 pandemic.
There continued to be growing demand for medical gloves globally and this requirement may outpace the supply available for front-line and healthcare organisations during the outbreak.
Malaysia is the world’s largest source of medical gloves, with a market share of about 65 per cent. This year alone local manufacturers are expected to produce 240 billion pieces of gloves because of Covid-19.
The number of Covid-19 cases around the world are rising. There are currently 13.1 million confirmed Covid-19 cases worldwide, and the total death count is 572,000 with the majority of the cases in the United States, followed by Brazil, India and Russia.
Mlabs may have been roped in by the glove maker for its expansion because of the former's expertise in providing solutions to the pharmaceutical.
In March this year, Mlabs announced that it will provide its video-conferencing products to Ipharmacare Malaysia Sdn Bhd to complement the latter's online pharmaceutical platform.
In return, Ipharmacare will support Mlab's efforts to promote these products, which will include but not limited to video conferencing systems, messaging systems and network solutions, to its platform users and/or independent pharmacies.
Mlabs is a dynamic company and it continues to expand in a drive to improve its revenue and net profit.
The company has announced a private placement of up to 267.4 million new ordinary shares, representing 30 per cent of the total number of issued shares in the company, to independent third-party investors to be identified later.
Based on an illustrative issue price of RM0.0243 per placement share, the gross proceeds to be raised from the proposed private placement will be utilised for working capital, among others.
In June this year Mlabs did announce that it has joined hands with Longhouse Films Sdn Bhd, a Malaysia incorporated film production company situated in Kuching, Sarawak, to revive the failing film production industry in Malaysia.
I am going to try to find out more details on this deal as I find it very interesting. It is about time someone revived the film production industry to put Malaysia on the world map. At least give the industry a chance to try!