KUALA LUMPUR: The Malaysian Rubber Glove Manufacturers Association expects medical rubber glove prices to rise next year following the increase in minimum wage that comes into effect Jan 1, 2020.
President Denis Low Jau Foo said costs could rise between US$0.45 to US$0.75 (RM1.86 to RM3.11) for every 1,000 pieces, depending on the type and production efficiency.
“The latest wage increase for urban workers is inevitable, given the higher cost of living in the cities, but it will have a ripple effect on everything; from support services, packaging materials, logistics, chemicals to raw ingredients.
“We will have to adjust and factor in this additional cost to our products,” he said in a statement today.
As such, Low urged the government to refrain from increasing the cost of water, electricity and other amenities that would add to the cost of doing business.
He added that this would also keep Malaysian manufacturers competitive.
On Tuesday, the Ministry of Human Resources released a list of 57 cities and towns involved in a mandated wage hike, following the government’s 2020 Budget which stated that minimum salaries in urban centres will be raised to RM1,200 per month from the current RM1,100 beginning next year.
The move is meant to help workers cope with elevated living costs and in line with the government’s target to achieve a minimum wage of RM1,500 a month within the first five years of the Pakatan Harapan administration.
The government had raised the minimum wage to RM1,100 in January this year from RM1,000 in Peninsular Malaysia and RM920 in Sabah, Sarawak and Labuan previously. — Bernama