Retailers expected to pass on electricity tariff hike

Retailers expected to pass on electricity tariff hike
Business & Markets 2013
Written by Levina Lim of theedgemalaysia.com
Friday, 20 September 2013 10:21

KUALA LUMPUR: Retailers may be forced to pass on to consumers the cost of a possible hike in electricity tariff of about 1% should it materialise, said the Malaysian Retailer-Chains Association (MRCA).

“This hike will have a chain effect on the upstream and downstream supply chains, which will ultimately affect consumers,” said MRCA vice-president Valerie Choo, at a media briefing in conjunction with the association’s 21st birthday celebration in Bangsar yesterday.

Other than the potential rise in operating cost, the association also voiced concerns about manpower issues, which is constraining the sector’s growth.

“We’re in a tight spot when it comes to operations as we are constrained by inadequate manpower. During the last two years, players have started slowing their expansion programmes,” said MRCA president Datuk Nelson Kwok.

An MRCA survey showed that there are as many as 8,000 staff shortages in the retail sector.

“We have voiced this out to the Ministry of Higher Education, which worked with University Utara Malaysia to offer internship opportunities to their students. However, the response has not been encouraging,” Kwok said.

On the anticipated GST implementation, Kwok said there is a need for clearer guidelines by the government. “Our members are not prepared for the GST; the majority of us are still in the dark on how the system works.”

Average annual sales growth for the retail trade ranges from 5% to10% among association members.



This article first appeared in The Edge Financial Daily, on September 20, 2013.