no such tax.

big 4 will donate rm400mil to gomen to fight covid19.

Bearing cost of vaccine and health equipment? How does that account for?

meaning the 400mil is meant for all things fighting covid19.

tax deductible.

400mil... maybe that will help pharma cos. make some profit.

sounds very fine for me.

if u hold any big 4 glove, u shud feel good about next week.

Rubber gloves production is not rocket science or proprietary, raw materials is not controlled items and new comers could poach experienced staffs from big players. hence, barrier of entry is not high.

instead of building from green field, one could shorten by leasing existing factory.

while money still could be made, many will join, supply > demand is later stage, few care at the moment.

Good news: no windfall tax
Better news. Voluntary donation to help combat covid. Breakdown below

*Total RM500mil donation*
Top Glove RM150mil
Supermax RM100mil
Harta RM90mil
Kossan RM60mil
Total from Big 4 : RM400million

100million from other listed companies :
1. River stone RM40mill
2. UniGlove RM25mil
3. Careplus RM25mil
4. Rubberex RM10mil

Grand total: RM500million
https://klse.i3investor.com/blogs/glovehari...indfall_tax.jsp

If with windfall tax how much TG will pay?what about supermax?

can anyone confirm?

https://www.theedgemarkets.com/article/top-...t-fight-covid19

TG figures don't tally with that. But close.

Voluntary, or deal to stave off windfall tax?

True. But which existing factory will lease to new players, especially when they can enjoy crazy profits currently? Any sane person would want to keep all profits for themselves.
Even those factories that were in trouble pre-covid are happily raking in the money.

Big players can secure raw materials by paying higher prices with big cash reserves currently. New comers do not yet have the same cash flow, unless pumped in externally somehow.
But raw materials are also facing bottlenecks at the moment, which has impacted the maximum potential of even the big players.

Still waiting to see how this all plays out, whether the new comers able to survive or not.

When contacted by theedgemarkets.com, Top Glove said it is donating RM185 million to the fund, while Supermax will be chipping in RM75 million.

Meanwhile, Hartalega said in a statement that it will be contributing RM90 million to the fund.

“This is a corporate social responsibility initiative by Hartalega to make a positive difference in the lives of Malaysians and support the nation’s healthcare sector,” it said.

Their total contributions amount to RM350 million.
https://www.theedgemarkets.com/article/top-...il-covid19-fund

Big players have so much money now to expand further. Barriers to entry for new comers. Many don't realise the big players already had expansion plans in motion before covid happened. They had slowed down expansion plans due to supply glut + supply growing faster than demand pre-covid.

Big players say a factory takes 2-3 years to be fully operational from scratch. If true and big players' expansion were already, for example, 50% completed in December 2019 it may look like they expanded within 1 year only.

Plus when supply > demand, the weak will close shop. There was a consolidation in 2011-12 where many were pushed out of the market. This could happen again when demand falls and competition gets tough.

Actually it doesn't take long if you want to speed things up. However the real headache is to get cheap power for your boiler and oven. You have to get through Petronas for natural gas supply. I'm not sure if they still get discounted rate or not, but still need to get the nod for uninterrupted supply.

Actually it doesn't take long if you want to speed things up. However the real headache is to get cheap power for your boiler and oven. You have to get through Petronas for natural gas supply. I'm not sure if they still get discounted rate or not, but still need to get the nod for uninterrupted supply.

The bottleneck is the manpower availability, especially in current covid operating environment.

Power costs will be passed into selling prices.