KUALA LUMPUR: The Malaysian Rubber Glove Manufacturers Association (MARGMA) has urged Gas Malaysia Bhd
and Tenaga Nasional Bhd to reduce their tariff rates.
In a statement today, president Denis Low Jau Foo said the association expected a "substantial” drop in natural gas price due to the sharp fall in liquefied natural gas (LNG) and coal prices.
He therefore asked the two companies to take a look at the current cost factors and revise their tariffs to be in line with the international prices of LNG and coal.
Low said local rubber glove makers found it challenging to cope with rising costs due to higher wages, an increase in natural gas prices over the past months, a "not-so-conducive”electricity tariff for businesses and the highly competitive global business environment.
MARGMA is also seeking the Energy Commission to assist in moderating energy costs to make the Malaysian rubber glove industry more competitive in light of the stronger competition from foreign firms.
This, he said, was to ensure that Malaysia continue to be the global leader in the supply of medical examination and surgical gloves to the world.
Low said the benchmark LNG Japan/Korea Marker futures had tumbled 60 per cent to US$4.62 per million British thermal units (MMBtu) from US$11.81 per MMBtu in September 2018.
Meanwhile, coal price has dropped 25 per cent to US$88.25 per tonne from US$118 per tonne in July last year.
"MARGMA is ever hopeful and we know that our government will react very quickly to assuage our costs and (bolster our) competitiveness to sustain Malaysia's global leadership in this field.
"We are also hopeful the foreign workers issue will be resolved upon a high-powered meeting with Primary Industries Minister Teresa Kok Suh Sim last week, and together, we shall be engaging Home Minister Tan Sri Muhyiddin Mohd Yassin and Human Resources Minister M. Kulasegaran for a winning solution," Low said.
He said MARGMA member-companies were expected to increase their exports to RM19.88 billion this year from RM17.74 billion last year.
Overall, Malaysia exports gloves to more 190 countries, with market share projected to reach 65 per cent this year. MARGMA expects the world market to buy up to 300 billion pieces of rubber gloves in 2019. - Bernama
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