IN THE RECENT week, Malaysia’s Top Glove Corp Bhd raised its glove prices to offset the effect of electricity tariff hike on its production costs and profits.
At the onset of 2014, manufacturers wrestle against the 16% to 38.53 sen/kWh rate hike from the previous 33.54 sen/kWh enforced in Peninsular Malaysia. In Sabah and Labuan, the rate hike is 17%. The increase has caused their production costs to jump by 3%.
Top Glove says that a US$20/per piece (based on 1,000 pieces) could now cost US$20.20.
Other leading glove makers like Supermax Corp Bhd and Kossan Rubber Industries Bhd have also followed suit, increasing their glove prices.