Minimum wage hike effective Jan 1, to push medical glove prices: MARGMA

PETALING JAYA: Medical rubber gloves prices are expected to rise following the minimum wage increase, which comes into effect January 1, 2020 according to Malaysian Rubber Glove Manufacturers Association (MARGMA).

The association’s president, Denis Low Jau Foo (pix) said that 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 press release.

Low stated that the cost increase may hover around US$0.45 to US$0.75 for every 1,000 pieces, depending on the glove type and production efficiency.

Earlier this week, the ministry of human resources released the list of 57 cities and towns involved in the mandated wage hike, following the government’s announcement in the Budget 2020 that minimum salaries in urban centres will be raised to RM1,200, from RM1,100 currently.

The increase is meant to help workers cope with elevated living costs, in line with the government’s target of a RM1,5000 minimum wage within the first five years of the Pakatan Harapan administration.

Prior to the current hike the minimum wage was raised to the current rate in January this year from RM1,000 in Peninsular Malaysia and RM920 in Sabah, Sarawak and Labuan previously.

In regards to the wage hike, the president stated that the association understands the need to alleviate the burden of rising living costs, but he also highlighted that the cost of doing business is also rising rapidly.

“We would like to urge the government to refrain from increasing the cost of water, electricity and other amenities to keep Malaysian manufacturers competitive,” he said.

“There is a severe shortage of workers and this has hampered productivity and that we are

concerned that delivery of this very important medical device may not be enough to cater

to the requirements of the hospitals of the world.”

Low pointed out that medical rubber glove is a critical protective device for which doctors, dentists and healthcare workers need to use frequently on a daily basis.

source https://www.thesundaily.my/business/minimum-wage-hike-effective-jan-1-to-push-medical-glove-prices-margma-AJ1803442