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FMM Press Statement: FMM Supports Move to Reduce Electricity Tariff

Kuala Lumpur, March 26, 2019 – The Federation of Malaysian Manufacturers (FMM) is fully supportive of the Government’s intention to consider the proposal to reduce the electricity tariff in view of the decline in the prices of coal and natural gas in the global market. 

FMM is concerned with the impact of the current surcharge of 2.55 sen/kwh which was effective from March 1, 2019. FMM hopes that the Government could consider suspending any future ICPT surcharge for the next two Imbalance Cost Pass Through (ICPT) review period. The readjustment after the temporary suspension should be gradual i.e. the accumulated surcharge accrued during the period should not be passed-through at once within the next subsequent ICPT review period.

Despite some recent positive signals in the Malaysian economy, worries over the global economy in particular the ongoing trade tension would continue to pose threats to manufacturing sector, dampening business and consumer sentiments amid rising high costs of living. A reduction in tariff would help ease the pressure currently faced by manufacturers amidst concerns of an impending economic slowdown. With a reduction in energy cost, the cost to manufacture and deliver goods also drops, leading to reduced cost to consumers. 

Expecting a challenging year ahead, FMM is hopeful that with the effective mechanisms to be put in place to facilitate industry especially small and medium enterprises to invest in energy efficiency initiatives, industry would be able to mitigate the energy price volatility.

FMM looks forward to continuous engagement with the Government in order to help sustain the competitiveness of businesses in view of the external factors uncertainty and concurrent cost increases already been imposed on businesses.

Dato’ Soh Thian Lai
Federation of Malaysian Manufacturers

FMM Advocates Transparency, Integrity and No Corruption

About FMM
The Federation of Malaysian Manufacturers (FMM) has been the voice of the Malaysian manufacturing sector since 1968. Representing over 10,000 member companies (3,000 direct and 7,000 indirect) from the manufacturing supply chain, FMM is actively engaged with government and its key agencies at Federal, State and local levels. FMM is also well-linked with international organisations, Malaysian businesses and civil society. Apart from benefitting from FMM’s advocacy, FMM members enjoy value-add services, including training, business networking and trade opportunities as well as regular information updates.

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