Highlight Glove prices to rise due to gas price hike, says trade group MARGMA

by **Cals** Thu 17 Apr 2014, 01:16

Highlight Glove prices to rise due to gas price hike, says trade group MARGMA

Business & Markets 2014

Written by Jonathan Gan of theedgemalaysia.com

Wednesday, 16 April 2014 16:37

KUALA LUMPUR (Apr 16): Glove prices are set to rise due to the increase in the gas price, according to a statement by Malaysian Rubber Glove Manufacturers Association (MARGMA).

Lim Kwee Shyan, the president of MARGMA, said the natural gas hike effective May 1 would raise production costs significantly for rubber glove manufacturers.

Production cost of gloves will increase by US$0.50 to US$0.80 (RM1.62 to RM2.59) per 1000 gloves for examination and surgical gloves, he said.

“Rubber glove manufacturers have expected the price hike and understand the need for subsidy rationalisation by the government.

“Whist we understand the move, we are concerned that the announced quantum is too high and is a sudden and big burden to us now,” explained Lim.

The association said the gas price adjustment should have been gradual and pre-announced.

Lim said there will be other cost increases, in addition to the above-mentioned cost hike.

“There will be other cost increase as well due to the effect on our supply chain which cannot be quantified now. Thus, we expect a domino effect throughout the entire supply chain. Glove buyers and manufacturers are advised to compute this in their glove price review,” he said.

MARGMA members have received notices from Gas Malaysia Bhd on the gas price hike since April 11, 2014.

Members of MARGMA are glove manufacturers, associated suppliers and supporting organisations.

Among the members are the world’s two largest glove makers - Top Glove Corporation Bhd and Supermax Corporation Bhd.