Primary Industries Minister Teresa Kok said getting the local industry players into the scene could help increase the prices of raw materials.

“Currently, the commodity prices rely on the international market forces. That is why our commodity prices are low right now,” she told Bernama.

As of yesterday, the Malaysian Rubber Board’s official physical price for tyre-grade SMR 20 was at 529.0 sen a kg, while latex-in-bulk was at 405.50 sen per kg.

The unofficial closing price for tyre-grade SMR 20 was at 531.50 sen a kg, while latex-in-bulk added 2.5 sen to 406.0 sen per kg.

As for palm oil, the prices ranged between RM2,187 and RM2,218 per tonne.

On the palm oil and rubber price difference between Peninsular and East Malaysia, she said this was due to higher costs incurred by planters in Sabah and Sarawak.

“Among the reasons are the tax imposed by the authorities, as well as the high cost of transportation from farms to factories.”

As for the minimum wage implementation, Kok said it was a national policy which needed consultation with various parties.

“Right now, industry players are paying more than RM1,500 per foreign worker, including levy.”

Sime Darby Plantation Bhd recently said the proposed increase of minimum wage to RM1,500 per month would cause financial consequences to the plantation industry.

Executive deputy chairman and managing director Mohd Bakke Salleh said if the proposal were to be implemented, it would raise labour cost’s contribution to total production cost to 35% from 26%.