FMM urges Govt to reduce electricity rate increase

Business & Markets 2013
Written by Jonathan Gan at theedgemalaysia.com
Tuesday, 03 December 2013 15:55
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KUALA LUMPUR (DEC 3): The Federation of Malaysian Manufacturers (FMM)
urged the government to lower the quantum of increase of energy tariff hikes
that will be implemented next year.
It also wanted the government to extend the effective date of implementation to
provide users time to mitigate the higher cost of doing business, according to a
press statement by FMM.
The influential trade organisation also expressed its disappointment over the
huge increase in electricity and the short notice of implementation.
The tariff hike was announced in Parliament yesterday.
“The manufacturing sector is disappointed with the huge 16.85% increase in
electricity rates for the industrial category and the effective date, which is only
one-month’s notice,” it said in the press release.
FMM said industries are currently faced with rising costs of the implementation
of minimum wages and minimum retirement age.
The increase in electricity tariff rates will impose further difficulties, it said.
“There is also the impending increase in gas pricing and various other
proposals in the pipeline such as unemployment insurance, environmental cess
… etc, all of which would again increase the cost of doing business
significantly,” said FMM.