KUALA LUMPUR: The natural gas price hike at 17.2 per cent, slated for Jan 1 next year, is viewed as too soon, too sudden and too high of a quantum with just a 10-day notice for manufacturers.
The Malaysian Rubber Glove Manufacturers Association (Margma) President, Denis Low Jau Foo, said each manufacturer would have to adjust their pricing depending on product types and their manufacturing costs.
Margma estimates that the increase would mean an additional cost of US$0.40 to US$0.70 per 1,000 pieces of nitrile gloves and about US$0.30 to US$0.50 for latex gloves.
“Rubber glove manufacturers expected the price hike and understand the need for subsidy rationalisation by the government, however, the announced quantum is too high, too sudden and a burden to us now.
“The 10-day notice is too short and makes it difficult for manufacturers to manage the sudden increase in production costs as the selling price for orders were already fixed months ahead,” Low added.
Margma said while the rubber glove business was still robust with companies reporting good profits recently, the buyers were actually getting lower and lower price offers.
It said the buyers were requesting lower prices every time there is an upward movement in the US dollar and a downward movement in commodity prices, resulting in profits margin being squeezed and may eventually hurt the rubber glove industry and the Malaysian economy in general. — Bernama