In a statement, TRMAM said the move is necessary in view of the dramatic increase in prices of raw materials, especially natural rubber, synthetic rubber and carbon black.

“The situation is exacerbated by significant increases in fuel cost and electricity rates, which substantially add to retreaders’ operating costs,” the statement added. However, even with the impending price increase, Malaysian retreads are still significantly lower than most neighbouring markets in the region, including China, Malaysia’s Business Times reported.