FMM sees cost rising by 1-2pc
PETALING JAYA: The Federation of Malaysian Manufacturers (FMM) expects its members’ sales cost to rise between one and two per cent following the electricity surcharge of 1.35 sen per kilowatt hour from Sunday.
Its president Datuk Soh Thian Lai urged the government to postpone the implementation as the surcharge would affect the manufacturing sector.
“The government should take into account the uncertain economic conditions. This is not the right time to raise electricity tariffs.
“The move will have a negative impact on the manufacturing sector and we urge the government to defer it for at least a year,” he said after the signing of the FMM Corruption-Free Pledge with the Malaysian Anti-Corruption Commission (MACC), here, yesterday.
Soh said the manufacturing industry played a key role as exports contribute to national income.
“The manufacturing industry is already under pressure following the ringgit’s depreciation, and operating costs are rising every year.
“About 70 to 80 per cent of raw materials are imported and if the ringgit continues to drop against the US dollar, it would affect the industry. We expect a slower growth in the second half of this year,” he said.
He said FMM planned to hold a meeting with the government to discuss the matter.
The Energy Commission announced last Friday that the government had agreed to maintain the imbalancecost-pass-through (ICPT) base tariff of 39.45 sen/kWh for the second half of this year with a surcharge of 1.35 sen/kWh for non-domestic customers.