Chairman Tan Sri Lim Wee Chai said this is also in line with the company's plans towards the automation of its plants and the minimum wage hike scheduled to take place on July 1, 2016.
The group's foreign labour workforce now stands at about 7,000.
Lim said the new system announced by the government was very sudden and did not take into account the impact it had on affected industries.
"The government should have called for a dialogue session with the various industries involved before implementing the new rate system.
"The rates are double now and it is definitely not encouraging," said Lim on the sidelines after launching Top Gloves' Private Retirement Scheme for eligible employees here earlier.