Business

FMM appeals for more gradual electricity tariff surcharge hike

Sudden increase hurts medium, large-sized companies, says president

Updated 3 years ago · Published on 18 Dec 2022 7:24PM

FMM appeals for more gradual electricity tariff surcharge hike
The Federation of Malaysian Manufacturers is appealing to the government for a more gradual and tenable surcharge rate increase to ease some of the industrial users’ cost burdens during this period of prolonged uncertainty. – ABDUL RAZAK LATIF/The Vibes pic, December 18, 2022

KUALA LUMPUR – The electricity tariff surcharge hike by more than 44% for medium-voltage (MV) and high-voltage (HV) users will pose major challenges to affected firms for the next six months, said the Federation of Malaysian Manufacturers (FMM).

Its president Tan Sri Soh Thian Lai said FMM is concerned with the significant increase and appeals for a more gradual and tenable rate hike to ease some of their cost burdens during this period of prolonged uncertainty.

“This request takes into consideration that MV and HV industrial users comprising medium and large-sized companies are equally affected by high operating costs due to inflationary pressures, minimum wage increase, labour shortage, transportation costs rise, global supply chain disruption, and the ringgit’s weakening. 

“It is important to note that these companies have contributed tremendously to the Malaysian economy in terms of investments, gross domestic product contribution, and employment,” he said in a statement today.

Last Friday, the government announced that MV and HV users will be charged a surcharge of 20 sen per kWh for the period of January 1 to June 30, 2023. – Bernama, December 18, 2022

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