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Malaysian Face Mask Manufacturers Might Go Out Of Business

Malaysian Face Mask Manufacturers Might Go Out Of Business

Akmal Hakim

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As the coronavirus throws a wrench into global economies and trade, Malaysian businesses are inevitably feeling the financial crunch of the Covid-19 pandemic. 

Local face mask manufacturers say that the new fixed ceiling price for face masks, set at RM1.50 per piece, might consequently drive them out of business.

Haminnuddin Hamid, CEO of Ideal Healthcare Sdn Bhd told FMT that high import duties and increasing costs for raw materials put pressure on domestic producers to compete with importers.

E-merchants see 500pc spike in face mask orders from Malaysians in ...
Most stores have sold out their supply of face masks and shortages have been reported across the world.
(Credit: Miera Zulyana/Malay Mail)

Haminnuddin said that it’s currently difficult to import raw materials from overseas and that the cost to produce face masks had spiked to more than 600%.

He explained that his company, one of the country’s major manufacturers of disposable medical products, will stop its production line once they’ve used up all available materials.

KKM Portal MyHealth on Twitter: "Siapa yang perlu pakai penutup ...
The Health Ministry also advocates the use of face masks only when you are sick or showing symptoms of illness.
(Credit MOH/Twitter)

The CEO said that Ideal Healthcare was responsible for roughly 25% of Malaysia’s domestic production of face masks.

Reportedly, our supply of surgical masks used in hospitals and clinics nationwide is mainly imported from China.

China pushes all-out production of face masks in virus fight ...
China is ramping up its production of face masks amid global demand.
(Credit: Nikkei New Asia Review/ Reuters)

Face masks, including the three-ply surgical masks, are items that are priced-controlled by the government. The new ceiling price is 50 sen cheaper than the RM2 price previously announced before it was revised due to public backlash.

Before the pandemic, the price of face masks was set at RM0.80 per piece.


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