Margma: Glove prices to rise following gas price hike

KUALA LUMPUR: Glove prices must be adjusted by US$0.40 to US$0.60 higher per 1,000 pieces considering higher gas tariff and minimum wage factors, said the Malaysian Rubber Glove Manufacturers Association (Margma).

President Denis Low Jau Foo said the natural gas price hike of 5.95%, effective July 15, would translate into additional cost of US$0.20 to US$0.30 per 1,000 pieces for nitrile gloves and US$0.20 to US$0.50 for latex gloves. 

“We understand the need for subsidy rationalisation by the Government but at the same time, we need to be mindful of the current global economic situation.

“Despite a longer notice period of 16 days this time around, a notice period of two months is needed as orders were placed months ahead,” he said.

The quantum of the increase cannot be factored in until glove manufactuerrs are notified by Gas Malaysia.

The industry would still have to absorb the increase when it can be easily passed on to buyers, he added. - Bernama

* See also Gas Malaysia hikes tariffs for non-power sector by nearly 6%