Asia manufacturers overtook by energy prices

The impact of liberalisation of energy prices in Asia is without precedent.

The case of Malaysia, world first latex gloves producer is significant.

Halt of subventions

Indeed, governement subventions had stabilized energy , gaz, oil and electricity, prices since 2006 at one of the lowest levels in South-East Asia.

But these grants have been calculated to cost more than 8,9 billions of Euros for 2008 to the Malaysian state. Malaysia First Minister Abdullah Ahmad Badawi has indicated that his country cannot support such financial effort and stooped the subventions june 28.

On June 29, the price of the litre of oil increased by 40%.

Repercussion on end-products

Malaysians manufacturers have immediately passed the raise on their tariffs.

They increased their prices with ease, as, with 60% of the world gloves production, Malaysia is in situation to set terms on this market.

In the absence of competitive quality alternative, hygiene professionals, retailers or gloves users, must prepare for futher prices raises and adapt their buying strategies accordingly.

To know more:

The Star online article on glove industry in Malaysia

Yahoo finance article on Malaysian and Indian rises

Mpygiene.com article about general prices increase