Current Affairs
Safe Sex May Get Costly As War Hits Production Materials
The cost of condoms could increase if the ongoing conflict involving Iran continues to strain global supply chains, according to the head of the world’s largest condom producer.
Karex CEO Goh Miah Kiat told Reuters that the company may have to increase prices by between 20% and 30%, depending on how long the disruptions persist.
Since late February, supply chains have been affected by tensions around the Strait of Hormuz, a key route for materials used in manufacturing.
Goh noted that the situation remains unstable, with rising costs forcing the company to pass expenses on to customers.
Karex, based in Malaysia, produces a wide range of medical and personal care products, including well-known condom brands such as ONE, Trustex, Carex and Pasante. The firm manufactures billions of condoms each year and supplies over 130 countries.
In addition to higher production and packaging costs, the company is also facing shipping delays. Goh explained that many shipments are stuck in transit, leaving some markets undersupplied despite high demand.
While global attention has largely focused on rising fuel prices linked to the conflict, experts say the impact goes beyond oil.
Shortages of key industrial materials known as feedstocks are also affecting production. These include naphtha, used in packaging, as well as silicon oil and ammonia, which are essential in condom manufacturing.
According to industry analysts, disruptions in the supply of these materials many of which come from the Middle East are pushing up production costs. Asia, in particular, is vulnerable due to its reliance on the region for energy and raw materials.
The situation is further complicated by fuel rationing in some Southeast Asian countries, which is affecting transport and workers’ ability to reach factories. This could slow down manufacturing and delay exports of essential goods.
For now, Karex says it has enough stock to last a few months, but continued instability could lead to higher prices and tighter supply in the near future.