No immediate fuel tax relief planned as October hikes loom, but price structure is under review
Mineral and Petroleum Resources Minister Gwede Mantashe says no immediate intervention is planned to cushion households and businesses from rising fuel prices, while a review of the fuel-pricing system is expected to conclude in March 2027.
Malaysian glove producers plan to increase prices by between US$2 and US$2.50 per carton in October to counteract higher production expenses, with additional price hikes possible as early as November, according to RHB Research. Analyst Eddy Do stated that the move is primarily driven by Chinese manufacturers, with Intco Medical raising prices by 15 yuan (US$2.24) to 40 yuan (US$5.97) per carton since September 9.
This gives Malaysian manufacturers a chance to follow suit in October. While the October price hike would mainly compensate manufacturers for higher natural gas costs, it would not significantly improve margins. Malaysian generic glove average selling prices (ASPs) fell to US$19-20 per 1,000 pieces in September, down from a peak of US$27-28 in May.
Malaysian producers may need to raise prices by US$1.50 to US$2 per carton just to cover an expected 40-50% rise in gas tariffs, leaving only US$1 or less to absorb further NBR latex price increases. The gap between Chinese generic nitrile gloves (US$18.50 per carton) and Malaysian exports (US$19 in non-US markets) has narrowed from US$1.50-US$2 in early August.
Despite the potential earnings boost from higher prices, RHB Research maintains an "Underweight" rating on the glove sector, citing the industry's long-term oversupply problems that may persist through 2028.
Written by urgent.news from New Straits Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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