Glove sector bloodshed on Bursa Malaysia remains unabated
HOW one’s fortune can change in the blink of an eye!
Could there be a better analogy to depict the misfortune of Malaysia’s Big-Four glove makers who have to confront the double whammy of not only being suffocated by a decline in average selling price (ASP) but also the Government’s mulling of new tax regimes to replenish its coffers?
To re-cap, the Government is eyeing the imposition of capital gains tax (on stock trading) and one-off higher tax rate on windfall profit which has very broadly dampened market sentiment on Bursa Malaysia in recent times.
And given their meteoric earnings since demand for gloves spiralled many folds at the height of the COVID-19 pandemic, glove makers – both big and small – surely make easy prey for windfall tax.
Unless the relevant authorities can swiftly clarifies the quantum of the taxes or the mannerism o