KUALA LUMPUR, Feb 4 — DAP secretary-general Lim Guan Eng today urged the government to retract its recent electricity tariffs hike for commercial and industrial users as it may impact this year’s economic performance. 

The Bagan MP said that the government should help reduce the impact on Malaysia’s economic growth this year by addressing six concerns from a business perspective including labour shortage and inflation.

“The government must reverse electricity tariffs hike on businesses immediately to help address the six immediate concerns of businesses that may adversely impact their company’s profitability and survival as well as the 2022 economic performance to pull the country out of the current recession.

“Despite greater business activity during the Chinese New Year period, the primary concern is surprisingly a shortage of workers to cater to the heightened demand. 

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“The inability to source workers has forced some businesses to ‘rest’ during this normally busy and lucrative period,” he said in a statement this morning. 

Commenting on inflation and the rising price of food as well as other basic commodities, Lim said that the imposition of higher electricity tariffs on businesses through a surcharge and withdrawal of rebates is not helped by a weakening ringgit that increases the price of imports.

He added that the government’s excessive bureaucracy, inefficiency and serial policy flip-flops that bred doubt instead of confidence among either industry players and the general public were also among primary concerns.

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Lim also said that the drastic drop in last year’s Transparency International Corruption Perception Index report that revealed Malaysia was placed at 62 from 51 in the previous year will also have an impact on the business side.

He said the government has also failed to harness the high-tech benefits of automation, Artificial Intelligence, Internet of Things (IOT) and also 5G to quickly put Malaysia up to speed and not be left behind by countries like Vietnam or Thailand.

Lim said the government has also failed to respond to their own promise to consider an extension of the bank loan moratorium and interest waiver by another six months to help businesses emerging from the Covid-19 pandemic and economic recession to survive and thrive.

On January 30, the Small and Medium Enterprises Association of Malaysia (Samenta) questioned the government on why Tenaga Nasional Berhad (TNB) is increasing the price of electricity this year when it reported profits last year.

The group said a hike up of 18.4 per cent in utilities bill for a business that’s running at sub-10 per cent margin could mean a reduction of profits up to 40 per cent which could make or break a business.

Last week, it was announced that the government would not approve increased electricity tariffs for domestic users next month despite previously indicating it would do so.

Prime Minister Datuk Seri Ismail Sabri Yaakob said the Cabinet’s decision not to raise the tariffs would benefit over nine million domestic accounts.

He said that the government would maintain a subsidy over RM700 million so that domestic users are not affected by an increase in rates.