Government urged not to increase electricity tariffs

THE MCA said the government must reconsider the proposed hike in electricity tariffs to avoid further burdening the public, particularly given the sluggish economic recovery.

Its vice-president, Datuk Dr Lawrence Low, said the government should delay the decision to increase electricity tariffs in the second half of 2025 until the national economic situation and people’s incomes have improved.

"A 14.2% spike is nearly eight times the rate of inflation, which is hard to believe. 

"Any rise in electricity costs will directly affect household expenses, potentially adding tens or even hundreds of ringgit to the monthly electricity bills of average families. 

"This will undoubtedly inflict additional strain on families that are already struggling to manage daily expenses," he said.

He said the operating costs of small and medium-sized enterprises will also rise, leading to an escalation in the prices of goods and services across the board. These chain reactions will ultimately affect every consumer.

"Although Prime Minister Datuk Seri Anwar Ibrahim has clarified that the government has not agreed to raise electricity tariffs for the general public and that the ascent would only affect the affluent and profitable industries, the announcement has sparked widespread public concern," he said.

He said that since the Cabinet has not yet approved the electricity tariff adjustment plan for the second half of 2025, the government has six months to assess market trends in fuel and natural gas prices, as well as the economic situation of the rakyat, before making a decision. 

"The unity government should honour its commitment to use savings from targeted subsidies to subsidise electricity costs. 

"It must plan the use of public funds carefully and ensure that the electricity tariff policy in the second half of 2025 still benefits 85% of ordinary household users," he said.

Low said the electricity tariff issue is not just an economic matter for businesses and households, but also a test of the government’s promises and the capability of its administration. 

"I hope the unity government will truly stand by the people’s interests and ensure that the decision to raise electricity tariffs does not undermine the broader economic recovery, ultimately benefiting the people," he added.