Wee: More MSMEs could close down if power tariffs rise in July
According to Dr Wee (pic), the United States has paused its reciprocal tariffs for 90 days until July 9, and if Putrajaya increases electricity tariffs, then businesses would be making meagre profits due to reduced margins.
'MSMEs will not earn more than 10% if the electricity tariffs are raised by 14.2%.
'I think many of them will close shop. So, I'm pleading with the government, please look into this matter,' Dr Wee said when debating during the special Parliament sitting yesterday.
He also said Putrajaya should cancel the e-invoicing implementation for MSMEs earning between RM150,000 and RM500,000 a year.
Dr Wee also asked the government to review the feasibility of implementing RON95 petrol subsidy rationalisation.
'The best mechanism must be identified so that its benefits will reach the majority of the people,' added Dr Wee.
'We cannot control exterior factors, but we can control domestic factors. Please postpone them (electricity tariff hike and RON95 subsidy rationalisation) for a while, give them some room to breathe,' added Dr Wee.
The targeted RON95 subsidy was initially scheduled to be implemented this June, while the hike in electricity tariffs is scheduled to begin in July 2025.
The special Parliament sitting saw MPs from both sides of the divide debating the US tariff issue.
US President Donald Trump announced on April 2 a sweeping 10% baseline duty on all countries and 24% levy specifically targeting Malaysian goods.
Except for China, Trump announced a 90-day pause on the implementation of retaliatory tariffs, just hours after the tariffs against US trading partners came into effect on April 9.
With the current global economic uncertainty, Dr Wee also urged the government to postpone the increase and expansion of the sales and service tax (SST).
'This should not be carried out because come July 9, the 90-day pause on all the US reciprocal tariffs comes to end.
'If the government goes through with expanding the scope of the SST, increasing the electricity tariff and implementing the petrol subsidy rationalisation, it will eventually ruin the MSMEs and impact the people,' Dr Wee said.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
New Straits Times
4 minutes ago
- New Straits Times
Bravery under fire: Malbatt praised for professionalism in Lebanon
KUALA LUMPUR: Malaysian peacekeepers in Lebanon have earned praise for their professionalism under fire when Israel attacked the country last year. Armed Forces Joint Forces Commander Lieutenant-General Datuk Zahani Zainal Abidin said he was never more proud of his men as he reflected on the Malaysian Battalion's (Malbatt) service in southern Lebanon under the United Nations Interim Force in Lebanon (Unifil). "During the 'Northern Arrow' (by the Israeli Defence Forces) escalation in September 2024, our troops swiftly activated bunker drills and coordinated with Unifil to maintain zero casualties despite cross-border exchanges. "Two months later, in November, an Israeli airstrike caused collateral damage to a Unifil convoy, injuring several Malaysian peacekeepers. "Our rapid medical evacuation and continued mission focus drew praise from the UN and troop-contributing nations," Zahani said, noting that these incidents reinforced the importance of discipline and rapid response protocols. HOLDING THE LINE He said Malbatt operated under the mandate of UN Security Council Resolution 1701, which called for monitoring the cessation of hostilities, supporting Lebanese armed forces deployments and ensuring its area of responsibility was free from hostile activity. Zahani said Malbatt had adopted stringent force-protection measures to safeguard personnel in a demanding threat environment. "Troops remain in fortified encampments and bunker drills are activated whenever cross-border hostilities spike. All patrols and logistical movements are suspended under Unifil directives to minimise exposure. "Regular checks on defensive structures and rapid-access shelters ensure immediate lockdown capability against indirect fire or drone incursions," Zahani said. He said under Unifil's mandate, Malbatt operated with strictly defensive rules of engagement. "Troops may return fire only if directly attacked. Offensive operations remain prohibited. We embed this principle through live-simulation, ensuring split-second decision-making under stress. "This clarity is vital in a theatre marked by multiple actors and asymmetrical threats." EYE ON THREATS, HEART WITH COMMUNITIES Zahani said intelligence and coordination were central to Malbatt's readiness. "The battalion's intelligence cell collated inputs from Unifil's Joint Operations Centre, the Lebanese armed forces and civilian informants. "Frequent 'snap' briefs are also held to update commanders on signs of Hizbollah escalation, Iranian drone flights, or suspected proxy-force staging areas." He said daily video-teleconferences with Unifil Sector West and adjacent battalions ensured rapid dissemination of new directives, including no-movement orders and escalation thresholds. While force protection was critical, Zahani added that civil-military engagement remained the cornerstone of Unifil's mandate. "Our engineers partner with municipal councils to repair schools and water systems in Marakah, Tibnin and surrounding villages. "Periodic town halls are also held to explain Unifil's peacekeeping objectives to residents, reducing the risk of agitators exploiting grievances," he said. Zahani added that this trust-building helped maintain early warning networks and blunt militia influence. MODERNISATION AND STRATEGIC READINESS In response to escalating risks along the Israel-Lebanon border, Zahani said the armed forces had modernised Malbatt's capabilities. "We replaced our ageing Condor armoured vehicles with 20 Turkish-made Panthera 4×4 platforms in 2023. These offer higher mobility, remote weapon station capability and improved troop protection. "Further upgrades are already in motion. By mid-2026, Malbatt will add 60 High-Mobility Light Tactical Vehicles (HMLTVs) to its fleet, enhancing agility and enabling rapid repositioning along the volatile Blue Line," Zahani said, referring to the 120km section of the southern Lebanese border that Unifil oversees. "These acquisitions are part of a broader plan to strengthen survivability and operational flexibility in one of the UN's most complex theatres." He said Malbatt had also introduced specialised capabilities, such as explosive ordnance disposal (EOD) teams and women's engagement modules. "These units not only address evolving operational requirements — from neutralising improvised explosive threats to fostering trust with local communities — but also reinforce the multidimensional nature of peacekeeping under the UN mandate." Training and readiness were also prioritised, Zahani said, as all personnel would go through an eight-week Force Integration Training (FIT) programme in Port Dickson before deploying to Lebanon with Malbatt. "This covers peacekeeping doctrine, cultural awareness, and scenario-based drills aligned with UN standards." He added that diplomatic coordination remained central to sustaining mission credibility. "Malaysia maintains a permanent liaison with the UN Department of Peace Operations (DPO) in New York to ensure real-time alignment of operational priorities with Malaysia's foreign policy principles — multilateralism, civilian protection and peaceful conflict resolution. "This strategic outlook was reinforced at the UN Peacekeeping Ministerial Conference in Berlin in May, where Malaysia pledged to deploy an additional infantry battalion, EOD teams and police units for future missions. "This underscores Malaysia's long-term investment in robust, multidimensional peace operations and its continued role as a trusted troop-contributing nation," Zahani said.
Daily Express
4 minutes ago
- Daily Express
BN eyes representation in all 25 Sabah MP seats
Published on: Sunday, August 03, 2025 Published on: Sun, Aug 03, 2025 By: Bernama Text Size: Datuk Seri Mohamad Hasan MEMBAKUT: Barisan Nasional (BN) intends to contest at least one state seat in each parliamentary constituency in Sabah during the 17th state election, said its Deputy Chairman Datuk Seri Mohamad Hasan. The Umno deputy president said the move is to ensure BN is represented in all 25 parliamentary constituencies in Sabah, which has a total of 73 state seats. However, Mohamad, who is also Foreign Minister and Rembau MP, said the proposal has not been finalised and will be discussed further with the BN component parties, namely Umno, MCA, MIC and Parti Bersatu Rakyat Sabah (PBRS). 'We do not want to see a recurrence of the situation in the last election, when some parliamentary constituencies lacked BN representation. 'This will lead to frustration and disillusionment among supporters, possibly causing them to leave the party,' he told reporters after launching the Kimanis Umno Division delegates meeting at Dewan Terbuka Membakut, here, Saturday. The current five-year term of the 16th State Assembly will expire automatically on Nov 11, paving the way for the 17th State Election. Meanwhile, Mohamad urged the people, particularly Umno members, not to be influenced by malicious allegations that the party had formed a coalition with DAP. 'BN, particularly Umno, has never merged with any party after the 15th General Election (GE15). Instead, BN only formed the current government with Pakatan Harapan (PH) based on an agreement with the coalition. 'Umno and BN agreed to form the Government because we needed to manage the country, as no party was able to form a government after GE15,' he said. * Follow us on our official WhatsApp channel and Telegram for breaking news alerts and key updates! * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available. Stay up-to-date by following Daily Express's Telegram channel. Daily Express Malaysia
BusinessToday
an hour ago
- BusinessToday
Green Doesn't Have To Be Gold: 10 ESG Facts Every Malaysian Business Should Know
ESG is often dismissed as something only large corporations can afford. But in Malaysia, where over 97% of all businesses are SMEs, that logic no longer holds, and in fact, may be holding them back. From family businesses to homegrown startups, or even regional brands, sustainability is becoming a business necessity, not a luxury. The Institute of Chartered Accountants in England and Wales (ICAEW) plays a large part in translating this transition into tangible business terms. By quantifying savings and projecting returns, the organisation helps businesses future-proof operations — not through hype, but through hard numbers. ICAEW supports this shift by equipping businesses and finance professionals with the tools, training, and data-driven insights needed to quantify sustainability risks, measure returns, and embed ESG into long-term strategy. For Malaysian businesses, sustainability is not the cost — it is the payoff. Here are 10 data-backed insights, each paired with a clear business rationale, showing how ESG drives results at any scale. ESG reporting rules will soon impact SMEs across the supply chain Bursa Malaysia now requires large, listed companies to adopt ESG disclosures, starting from financial year 2025. While most listed companies are not SMEs, this mandate will cascade through procurement chains, prompting thousands of SMEs to align with ESG standards if they wish to remain competitive vendors. Companies that act early will be better positioned to retain key contracts, access green capital, and maintain investor trust. More SMEs are embracing ESG as a growth strategy A growing number of Malaysian SMEs are embracing ESG not just for compliance, but as a growth driver. For those already taking action, the commercial returns are starting to show. According to a recent study, 60% of SMEs have adopted ESG practices, up from just 28% two years ago. Among these adopters, 38% reported revenue growth exceeding 50%, driven by improved market access and customer demand. But few have embedded it into core operations While awareness is rising, many Malaysian SMEs have yet to embed ESG into their core operations. A study found that only 19% of SMEs have adopted environmentally friendly production processes, and just 12% are involved in structured social responsibility programmes. This gap shows the opportunity for early movers to lead the transition. Solar isn't just green, it's cost-efficient One key area where ESG delivers fast returns is energy. Malaysian businesses now benefit from incentives like 100% investment tax allowance, soft loans under the Green Technology Financing Scheme, and the Net Energy Metering (NEM) programme. Local companies have cut electricity costs by nearly half, with some saving up to 75% after switching to rooftop solar. Sustainability drives customer loyalty and willingness to pay Consumers are increasingly voting with their wallets. Businesses that can demonstrate environmental responsibility are more likely to attract and retain customers as well as command a price premium. According to the Malaysian Green Technology and Climate Change Corporation, 78% of Malaysian consumers consider a product's environmental impact before making a purchase. And the business case doesn't stop there. Beyond regulatory pressure, revenue growth, and energy savings, ESG also opens doors to financing, talent retention, and long-term resilience. The following insights show how sustainability strategies are delivering measurable returns across different parts of the business. Banks are unlocking ESG access through green finance Banks are increasing sustainable lending, making ESG investments more accessible for Malaysian businesses. CIMB Group had mobilised RM86.2 billion in sustainable finance. Maybank reported RM83.2 billion in sustainable financing as of mid-2024, surpassing its RM80 billion goal set for 2025. RHB Bank disbursed RM23.8 billion and raised its target to RM50 billion by 2026. ESG is becoming a driver of talent attraction and retention Employees now expect more than pay—they want purpose and meaning from their work. A global IBM study found that over 70% of employees say they'd be more likely to apply for or accept a job with a company they consider environmentally or socially responsible, and around 35% of those who switched jobs last year did so to work for such companies. ESG readiness protects export competitiveness International buyers are raising the bar on climate standards. With the EU's Carbon Border Adjustment Mechanism (CBAM) phasing in from 2026, Malaysian exporters will need to track and report their carbon footprint to avoid penalties. ESG compliance is becoming essential for protecting access to international markets. According to the Securities Commission, 75 percent of Malaysia's exports to the EU could be affected, even though the EU accounts for just over 8 percent of total exports. Greening supply chains saves millions in disruption Climate risks, labour shortages and tightening ESG standards are creating vulnerabilities across global supply chains. Companies that adopt sustainable procurement practices and build resilience into their supply chain operations are better able to avoid revenue loss and delivery delays. Malaysia's economy is losing an estimated RM8.7 billion each year to supply chain disruptions. ESG-aligned businesses can mitigate these risks while maintaining competitiveness and customer trust. ESG signals long-term business strength to investors Investors are prioritising companies with credible sustainability credentials, viewing them as more resilient, compliant, and better positioned for long-term growth. ESG performance is increasingly seen as a proxy for risk management and future-readiness. For SMEs seeking funding, this shift is especially relevant, ESG alignment isn't just a moral imperative, it's a competitive edge in attracting capital. In Malaysia, Sustainable and Responsible Investment (SRI) fund assets grew from RM7.05 billion in 2022 to RM7.7 billion in 2023, reflecting growing investor appetite for businesses that take ESG seriously. While this isn't exponential growth, it marks a consistent upward trend in capital flowing into sustainability-focused investments — a signal SMEs can't afford to ignore.
