THE Malaysian Rubber Glove Manufacturers Association (MARGMA) expects medical rubber gloves to be more expensive once the National Minimum Wage Policy takes effect on Jan 1, 2020.
MARGMA president Denis Low said in a statement that the prices would be adjusted upwards to impute the higher minimum wage of RM1,200.
“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 and logistics, to chemicals and raw ingredients. We will have to adjust and factor in this additional cost to our products.” Low said.
“The cost increase may hover around 45 to 75 US cents for every 1,000 pieces, depending on the glove type and production efficiency,” he added.
The Ministry of Human Resources released this week the list of cities and towns involved in a mandated wage hike following the government’s announcement in Budget 2020 that minimum salaries in urban centres will be raised to RM1,200 per month beginning next year, from RM1,100 currently.
The decision was meant to help workers cope with elevated living costs and is in line with the government’s wish to achieve a minimum wage of RM1,500 a month within the first five years of the Pakatan Harapan administration. The minimum wage was last raised to the current rate in January 2019, from RM1,000 in the peninsula and RM920 in Sabah, Sarawak and Labuan.
“We understand where the government is coming from and the need to alleviate the burden of rising living costs for the rakyat, but the cost of doing business is also fast rising. We would like to urge the government to refrain from increasing the cost of water, electricity and other amenities to keep Malaysian manufacturers competitive.” Low said.
He added that there was a severe shortage of workers and this has hampered productivity and that MARGMA was concerned that delivery of this very important medical device may not be enough to cater to the requirements of the hospitals of the world.
“The medical rubber glove is a critical protective device for which doctors, dentists and healthcare workers need to use frequently on a daily basis,” Low reiterated. – Dec 19, 2019
