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Aspen Group to diversify into rubber gloves manufacturing


Aspen Group JV with CMY Capital Sdn. Bhd. with target production by 3Q 2021

Aspen (Group) Holdings Limited (“Aspen” and together with its subsidiaries, the “Group”), co-developer of Aspen Vision City at Batu Kawan Penang with IKEA Southeast Asia, today announced its wholly-owned subsidiary AVA has agreed to participate in a joint venture arrangement with CMY Capital Sdn. Bhd. (“CMY”) to diversify the Group’s existing business (“Existing Business”) to include the business comprising manufacturing and distributing rubber gloves and other related activities (“Proposed New Business”) (the “Proposed Diversification”).

The Proposed Diversification will involve a new business which is substantially different from the Existing Business. It is envisaged that the Proposed Diversification will change the existing risk profile of the Group. An extraordinary general meeting (“EGM”) will be convened by the Company to seek approval from the Shareholders for the Proposed Diversification.

The Group intends to diversify its existing scope of core business activities to include the business comprising manufacturing and distributing rubber gloves and other related activities via its wholly-owned subsidiary Aspen Vision All Sdn. Bhd. (“AVA”)

The Joint Venture

The Group together with CMY and Encik Iskandar Basha Bin Abdul Kadir (“Mr. Iskandar”) intend to jointly develop the Proposed New Business and the parties have agreed that Aspen Glove Sdn. Bhd. (“AGSB”) shall act as the special purpose vehicle through which the parties shall jointly operate the Proposed New Business. AVA and CMY will contribute to the capital requirements of AGSB in such manner to be determined by AVA and CMY in due course.

CMY is an investment holding company, founded by prominent Malaysian businessman Tan Sri Dato’ Chua Ma Yu. CMY, incorporated in Malaysia, is an active global capital market investor. The principal activities of CMY involve investment holdings, equity investments, hotel and real estate developments.

AVA have agreed to participate in a joint venture arrangement with CMY Capital Sdn. Bhd. in which Aspen Glove Sdn. Bhd. shall act as the special purpose vehicle for the operations of the proposed new business. The initial investment of approximately RM105 million for phase 1A is targeted to produce a total capacity of 1.1 billion pieces of gloves per annum from 3Q 2021

Rationale for the Proposed Diversification

The medical gloves market is expected to grow at a compound annual growth rate of over 15% during the period 2019–2025. The increasing usage of gloves to protect healthcare professionals from the risk of contamination and infections like Covid-19 and the improving hygiene standards at F&B establishments, hospitality and travel sector are major factors contributing to the growth.

According to the Malaysian Rubber Glove Manufacturers Association (“MARGMA”), there will be a global shortage of rubber gloves due to a coronavirus-driven surge in demand which will carry over into the next year. The increased demand is due to the pandemic, stock piling and new users following the pandemic. MARGMA expects the global demand for rubber medical gloves to be about 345 billion in 2020 against 298 billion in 2019.

Acceptance of Letter of Offer from Kulim Technology Park Corporation Sdn. Bhd. (“KTPC”) to lease a piece of industrial land measuring 29.331 acres located at Kulim Hi-Tech Park (“Land A”) and a first right of refusal (“FRR”) with KTPC for the lease of a piece of land measuring 37.031 acres located adjacent to Land A (“Land B”). Both lands totalling 66.362 acres can support a total production capacity of 28 billion pieces of glove annually

Latex and nitrile medical examination gloves are commonly used in healthcare settings, F&B establishments, as well as the hospitality and travel sectors. Currently, Malaysia is the world’s largest source of medical gloves, with a global market share of about 65%. According to the Department of Statistics Malaysia, the highest exports by item in April 2020 was rubber gloves with a value of RM1,984.4 million, an increase of 11.6% compared to March 2020.

Despite most existing glove makers in Malaysia running at full capacity, there are still production backlogs of 4–6 months in fulfilling orders. Hence, the Group believes that the demand for gloves is likely to remain firm till end 2021, especially from the healthcare, F&B establishments, as well as the hospitality and travel sectors.

As two thirds of the global supply for rubber gloves comes from Malaysia, Malaysia is the ideal location to set up the Proposed New Business where the entire supply chain and supporting industries are within Malaysia and easily connected through good highway, seaport and airport infrastructure.

The Group has been in discussions with various global market supply chain buyers from diverse geographical locations who have shown strong interest to buy and commit to forward purchase up to the capacity of AGSB productions. To this end, AGSB will continue to engage buyers from various countries from the private sector to the public sector to secure sales on a forward booking basis as we finalize the project milestone in the months to come.

“Although being a new entrant during a period of strong market demand, we believe that global demand for rubber gloves will steadily increase in the long run and with strategic planning around pricing, competitors, marketing strategies and distinctive positioning, the Group will be able to penetrate the market and gain a reasonable market share,” said Dato’ M. Murly, President and Group Chief Executive Officer of Aspen Group.

The Proposed Diversification of the Group is expected to enable the Group to expand its revenue base, offer new business opportunities so as to enhance shareholders’ value for the Company and reduce the Group’s reliance on the Existing Business, which remains competitive. (Singapore, 12 August 2020)

Entry into a memorandum of understanding with Invest Kedah Berhad, a state government-linked company to provide Aspen Glove Sdn. Bhd. the necessary support and facilitation for the establishment and operation of the new venture

About Aspen (Group) Holdings Limited

Listed on the SGX-Catalist in 2017, Aspen (Group) Holdings Limited is a Malaysia-based property group developing residential and mixed development properties at strategic locations with good infrastructure and amenities at affordable price points. 

The Group’s flagship project, Aspen Vision City, a 245-acres freehold mixed development project well-located in Bandar Cassia, Batu Kawan – Penang’s third satellite city, is a joint-partnership with IKEA Southeast Asia. With a gross development value of over RM13 billion, of which the Group has launched over RM2.17 billion of properties; Aspen Vision City features the first IKEA Store in the Northern Region of Malaysia and a state-of-the-art regional integrated shopping centre. 

In addition, the Group also has several property developments in Penang Island and Central Region of Malaysia, which captured a total gross development value of over RM2.5 billion. Combining its vision and powered by a dynamic team, Aspen Group is poised to make a significant impact in the marketplace and soar to greater heights in the years to come. For more information about the Group and its projects, please visit

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