Edited by: Sheera Abg Mansor
KUALA LUMPUR: Medical glove manufacturers and exporters stand to lose RM47.2 million in foreign revenue over the next three months due to the recent sudden and drastic gas tariff increase.
Malaysian Rubber Glove Manufacturers Association (Margma) president Denis Low Jau Foo as quoted in New Straits Times said Gas Malaysia’s sudden spike in natural gas tariff had forced manufacturers to absorb the unanticipated cost increase to honour some RM5 billion orders secured before the announcement.
In a statement today, he lambasted Gas Malaysia Bhd (GMB) for its bad habit of making sudden and drastic gas price hike instead of allowing adequate time for manufacturers to re-price their export products.
The natural gas price hike increased from RM32.38 to RM34.12 per MMBtu is highlighted as too drastic and with just three days’ notice over a weekend, it is also too sudden for manufacturers and exporters.
Low estimated this natural gas price hike will lead to an increase in production cost of US$0.30 to US$0.80 per 1,000 pieces of nitrile gloves and about US$0.35 to US$0.85 for natural latex gloves.
Source: New Straits Times