Posted by arv18 > 2022-07-13 20:22 | Report Abuse

Pride comes before a fall. The biggest loss by a Malaysian Chinese business family in Malaysian history. Devastating.

Posted by arv18 > 2022-07-13 21:32 | Report Abuse

Part of your job as a CEO, Tan Sri etc, is to protect the market cap (value) of your company.

The default mode of most Chinese businessmen is to a) Copy what others are doing or b) blindly expand supply to the sky (thereby crashing the price).

they can't seem to think outside the box, for example, doing some vertical integration for example a) buy a dry bulk ship to ship your gloves b) invest in NBL manufacturing to reduce input costs c) pay your foreign workers well, improve working conditions (with bonuses) to keep the NGO's away, at bay d) don't expand, focus on a + b + c. Why don't expand, because you are selling/dealing in a fungible good like gloves. any tom,dick and harry (greedy Chinese businessmen) can make gloves!

but the issue is the blind greediness of Chinese businessmen. It is a double-edged sword. It can drive ambition, but can leave you exposed in other areas.

Posted by arv18 > 2022-07-13 21:40 | Report Abuse

But not only is this tycoon greedy, he is extremely selfish. look how Top GLove mistreated its workers with forced labour issues. Did the company pay worker bonus during the good times? No!

Extremely Greedy. And Selfish. Classic case. Want to expand supply, pay dirt cheap low wages so people suffer.

Karma lah.

Posted by arv18 > 2022-07-13 22:08 | Report Abuse

It's not me that blocked Top Glove exports for labour violations and mistreatment of workers.

US Border Service and Andy Hall helped to ensure the hard-working workers received their monies.

I even saw some other companies housing workers in shipping containers.

This is a problem with most Malaysian Chinese businessmen. Stingy and selfish when it comes to treatment and payment of salaries.

Even RM1500 basic wage the Malaysian Manufacturers Association wants to cry and scream about it.

Only when the NGO and Americans step in like grown up parents to slap these greedy Chinese businessmen, they only THEN rectify their ways.

__________________
Posted by qqq3333 > Jul 13, 2022 9:45 PM | Report Abuse

I don't agree with arv.... no proof to backup his statements except share price drop

Posted by wallstreetrookie > 2022-07-14 08:43 | Report Abuse

Well said by @arv18
Excellent analysis

Posted by wallstreetrookie > 2022-07-14 08:43 | Report Abuse

Top Glove Corporate Strategy team failed at their job

Posted by darren2021 > 2022-07-14 09:46 | Report Abuse

when the company pay higher than market value does it means the company good? for example us companies paying higher than market but whenever there is any down turn, they are the first to retrench workers. whenever their workers getting older and salary high, they gonna replace them with younger and cheaper workers. how u going to judge this senario?

Posted by calvintaneng > 2022-07-14 13:32 | Report Abuse

Listen to the Cruz of the problem

Covid 19 caused Demand for Malaysian gloves

And demand far exceeded supply so prices surged up

ASP Premium of $$$

Then News of newly minted Glove Billionaires reached China

China who produced Glove Auto Machines selling for Rm1.2 Million never imaged selling gloves can make so much money joined the fray

Posted by calvintaneng > 2022-07-14 13:37 | Report Abuse

Since China could build 1,000 bed hospitals in 10 days China set up New glove factories all over China and started Churning out Billions and Trillions gloves non stop 24 hours by robots
leading to Glut and price war

now Malaysia sell gloves

Usd24 for 1000

China under cut

Usd22 for 1,000

plus USA just reduced tarif for China glove import but banned Malaysia gloves

That is why Cannot touch gloves now

Posted by calvintaneng > 2022-07-14 13:40 |

Post removed.Why?

Posted by calvintaneng > 2022-07-14 13:51 |

Post removed.Why?

Posted by Investoz88 > 2022-07-15 10:50 | Report Abuse

Easier said than done.
Not easy for chinese companies to fully automate gloves productions.
Their costs could be higher due to more expensive labour, high energy costs and supply chain disruption etc..
Zero Covid strategy is going to hurt them a lot.
Quality is another issue for chinese made gloves.
Thats why they are all making losses.
More and deeper losses if they continue the same path.

Posted by Investoz88 > 2022-07-15 11:13 | Report Abuse

Other gloves companies listed overseas incl Singapore, Thai , Australia are moving up..
Why??