PETALING JAYA: The steep rise in electricity tariff from 3.7 sen to 20 sen would impact mid-tier companies (MTCs) the most, says a business group.
Malaysian Consortium of Mid-Tier Companies (MCMTC) president Callum Chen said MTCs also need time to recover as they have been hit with increased costs, similar to small and medium enterprises (SME).
ALSO READ: Limited electricity tariff hike
“The MTCs, just like the local SMEs, have increased costs in the form of higher minimum wages, shortage of labour, huge increases in raw material prices and bank interest rate hikes.
“At the same time, we incur additional compliance costs as we work to counter stiff external global competition, such as from China exporters as they are slashing prices to keep their factories in operation,” he said in a statement on Wednesday (Dec 21).
ALSO READ: MSIA appeals for further review of electricity tariff surcharge increase
Chen also said the revenue recorded by national electricity provider Tenaga Nasional Berhad in the first nine months of its financial year was due to the contribution of the manufacturing and export industries.
“It makes one wonder if, without the hard-working Industry (manufacturers and exporters), our national utility would have been able to achieve what it reported,” he said, citing TNB’s revenue increase of 6.6% from RM35.59bil to RM37.95bil.
ALSO READ: ICPT approval seen to boost TNB’s prospects
He appealed to the government to reconsider the move to increase the tariff in order to allow the industry to rebuild post-pandemic.
“Please allow us some breathing space to focus on rebuilding the economy and not derail (us),” he added.
Last week, Natural Resources, Environment and Climate Change Minister Nik Nazmi Nik Ahmad announced that there will be an electricity tariff adjustment on the imbalance cost pass-through (ICPT) for medium-voltage and high-voltage users among industry participants, including multinational companies.
