By Ooi Tee Ching
PETALING JAYA: Malaysian Rubber Glove Manufacturers Association (Margma) today said medical gloves prices will rise by a further 10 per cent due to costlier fuel and packaging materials rising minimum wages and a stronger ringgit against the US dollar.
"Gas tariffs in Malaysia and minimum wages are set to rise next month," said Margma president Denis Low Jau Foo.
He also explained the shortage of packaging materials have triggered a price surge and this need to be properly managed as glove manufacturers typically price their exports months ahead.
"We have no choice but to raise glove pricing accordingly. Our profit margins are squeezed by mounting costs," he said in a statement today.
Last week, Gas Malaysia Bhd said the average effective natural gas tariff for the non-power sector in Peninsular Malaysia will rise to RM32.52/MMBtu for the six months of January to June 2018, after taking into account costlier liquified natural gas (LNG).
This RM32.52/MMBtu rate is made up of the RM30.90/mmBtu base tariff set for January to June 2018 and surcharge of RM1.62/ MMBtu, due to the recent spike in LNG prices.
Since the 6-month average effective natural gas from July to December 2017 was set at RM26.40, this marks a drastic 22.9 per cent increment.
Low went on to highlight the rising strength of the ringgit against the greenback. From RM4.50 to US$1 in January 2017, the US dollar today trading at RM4.06 to US$1.
"This means the ringgit has strengthened by 10 per cent against the US dollar," he said, adding the exchange rate has a direct bearing on business profits and returns to shareholders.
“Thus, it is absolutely necessary for glove manufacturers to factor in all the higher costs so as not to be caught out," he said.