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| Mlabs System Bhd Turned Glove Maker and Healthcare Provider |
Mlabs System Bhd Turned Glove Maker and Healthcare Provider | Hey guys! Mlabs System Bhd, which saw 40 million shares traded today is confirmed venturing into the healthcare business and manufacturing gloves. The company, which has been seeking to diversify its business and enter into high-income generating businesses is believed to be working together with one of the top glove manufacturers in Malaysia.
We do not have details on who the glove manufacturer is or when they had approached Mlabs but we hear that Mlabs is excited about the deal. The country's top glove makers are Top Glove Corp Bhd, Hartalega Holdings Berhad, Kossan Rubber Industries Berhad, and Supermax Corporation Berhad. The glove companies are operating at full capacity to meet the urgent need for medical gloves due to the pandemic but there is still a shortage globally.
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| Mlabs System Bhd Turned Glove Maker and Healthcare Provider |
In 2019, Malaysia exported about 182 billion gloves and for 2020, due to the ongoing Covid-19 global pandemic, the Malaysian Rubber Glove Manufacturers Association estimated it to be as high as 240 billion pieces. HSBC Malaysia reportedly said recently there continued to be growing demand for medical gloves globally and this need may outpace the supply available for front-line and healthcare organisations during the outbreak.
The banking group said it has continued to support 70 per cent of top glove manufacturers during the Covid-19 pandemic. 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. So Mlabs entry into this business is rather timely.
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| Mlabs System Bhd Turned Glove Maker and Healthcare Provider |
We expect the stock to trade higher than its current 4.5 sen to 5 sen range on this news. The current glove makers have seen their share price sky-rocket since the outbreak of the Covid-19.The trading for Mlabs will also be supported by a recent deal it inked with Ipharmarecare (Malaysia) Sdn Bhd .
In April, Mlabs said it had signed a collaboration agreement with Ipharmarecare which will provide the company an opportunity to expand its solution into the pharmaceutical industry throughout Southeast Asia, including Malaysia. Mlabs will provide its video-conferencing products to Ipharmacare to complement the latter's online pharmaceutical platform. Ipharmacare in turn will promote Mlab products, including video conferencing systems, messaging systems and network solutions, to its platform users and/or independent pharmacies.
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