Its president Denis Low Jau Foo said costs could rise between US$0.45 to US$0.75 (RM1.85 to RM3.10) for every 1,000 pieces, depending on the type and production efficiency.

“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 statement today.

Low urged the government not to increase water, electricity and other tariffs that would add to the cost of doing business.

On Tuesday, the human resources ministry released a list of 57 cities and towns involved in a mandated wage hike, following the government’s 2020 Budget which raised minimum salaries in urban centres to RM1,200 per month from the current RM1,100.

The move is meant to help workers cope with rising living costs and is in line with the government’s target to achieve a minimum wage of RM1,500 a month within the first five years of the Pakatan Harapan administration.

The government had raised the minimum wage to RM1,100 in January this year from RM1,000 in Peninsular Malaysia and RM920 in Sabah, Sarawak and Labuan previously.