Malaysian rubber glove manufacturers feel the pinch

ERJ staff report (TP)

Kuala Lumpur – Malaysia’s electricity tariff review will increase production costs significantly for rubber glove manufacturers, said the Malaysian Rubber Glove Manufacturers Association (MARGMA), reported The Malay Mail.

President Lim Kwee Shyan said electricity cost forms part of the energy cost which currently accounts for 10 percent of the rubber glove manufacturers' total production costs.

He said the production cost for 1,000 gloves will increase between US$0.20 (€0.15) and US$0.60 (€0.44) depending on the type of equipment used.

Other costs would also increase due to the higher electricity cost throughout the entire supply chain.

“Glove buyers and manufacturers are advised to compute this in their price review,” he added.

On 2 December, Energy, Green Technology and Water Minister Datuk Seri Dr Maximus Ongkili announced a review of electricity and gas subsidies, with the average electricity tariff in Peninsular Malaysia to be raised 4.99 sen (€0.011) per kilowatt-hour (kWh) in Peninsular Malaysia and 5.0 sen/kWh (€0.011) in Sabah.

Both rates would come into force on 1 January 2014. MARGMA recognises that electricity tariff should be at market rate but feels that the market price must be gradual and pre-announced to give sufficient time for adjustments.

“The increase definitely has to come but the government should give us more time to adjust to the new cost structure and to liaise accordingly with our customers,” Lim said.

This is an external link and should open in a new window. If the window does not appear, please check your pop-up blocking software. ERJ is not responsible for the content of external sites.

Full story from The Malay Mail