Energy-intensive sectors feeling the heat from tariff hike
Federation of Malaysian Business Associations (FMBA) vice-chairman Nivas Ragavan said the manufacturing, cold storage and food processing sectors were affected.
For SMEs operating in industrial zones, he said this led to an average increase of up to RM9,000 monthly, depending on usage and operational scales.
'Some members have reluctantly begun passing down costs as part of increased utility expenses.
'Average price adjustments have been in the 3% to 7% range, primarily to offset electricity-related overheads,' he said.
Nivas, who is also the Kuala Lumpur and Selangor Indian Chamber of Commerce and Industry president, said the hikes will lead to broader consumer price increases if relief mechanisms or subsidies were not reviewed.
'The government and TNB should reevaluate the tariff structure.
'Businesses that adopt environmental, social and governance initiatives, invest in green energy or operate during off-peak hours, should be offered tiered incentives or rebates.
'This will encourage sustainability without punishing productivity,' he said.
SME Association of Malaysia national president Chin Chee Seong said the body will conduct a survey to find out the actual situation on the ground.
'It may be several months before any impact can be observed.
'Perhaps then, we can see how much more businesses have to pay when it comes to their electricity bills,' he said, adding that most may not have received their bills yet.
The Electricity Tariff Restructuring came into effect on July 1 and will last until Dec 31, 2027.
Under the restructuring, the Energy Commission announced that more than 23.6 million domestic users in the peninsula would benefit from fairer and more progressive electricity rates due to the newly approved electricity tariff schedule by the government.
It said the electricity tariff changes for the Regulatory Period 4 (RP4) involve the restructuring of the following three components – average base tariff rate, new tariff schedule and fuel cost adjustment mechanism.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
New Straits Times
11 hours ago
- New Straits Times
Second day of tax grievances: Lim joins Wee in flagging refund delays
KUALA LUMPUR: The issue of delayed tax refunds was raised for the second consecutive day in Parliament, with former finance minister Lim Guan Eng highlighting refund backlogs and unreasonable Inland Revenue Board (LHDN) assessments as key concerns for taxpayers. Lim, who is the Bagan member of parliament, said taxpayers were questioning why they had not received their refunds within the stipulated 30-day period. "Some companies have even reported having to wait more than three years to get their tax refunds. What is the total amount of outstanding tax overpayments?" he asked. Lim added that taxpayers often complained of being pressured by unreasonable assessments issued by the LHDN. He also raised concerns over enforcement of transfer pricing regulations, saying unclear procedures had led to confusion, particularly over recent requirements for companies to impose interest on funds transferred to subsidiaries, which are then deemed taxable income. On Tuesday, Datuk Seri Dr Wee Ka Siong called for the LHDN to be restructured as an independent statutory body that reports to Parliament, rather than remaining under the Finance Ministry. Wee, the MP for Ayer Hitam, said LHDN must not be seen as a political tool and should not follow the dictates of the executive, regardless of who is in power. He also highlighted growing frustration among small and medium enterprises (SMEs), citing an increase in complaints over delayed tax refunds. "This creates the perception that the government is borrowing the people's money without interest," Wee said, pointing to a case where a taxpayer who applied for a RM13,000 refund was offered only RM650, with the balance to be paid over four years. Meanwhile, Lim called for the establishment of a special Taxpayer Tribunal to protect individuals and small and medium-sized enterprises (SMEs) from alleged unfair treatment by the LHDN. There was growing complaints from taxpayers claiming they were pressured by questionable tax assessments and enforcement actions, including bank accounts being frozen without clear justification, he said. He said that while LHDN's efforts to boost government revenue were commendable, these must be balanced with fair and reasonable enforcement. "While we appreciate the board's efforts to increase national revenue, it must be balanced with fair and reasonable treatment to avoid arbitrary actions," he said when debating the 13th Malaysia Plan in the Dewan Rakyat today. "I propose the formation of a special taxpayer tribunal to protect individuals and SMEs from feeling that they are being treated unfairly, victimised, or subjected to double standards in enforcement," Lim added.
The Star
12 hours ago
- The Star
Company director charged with dishonest removal of money into his account
KUALA LUMPUR: A software company owner was fined RM6,000 by the Sessions Court here on Wednesday (Aug 6) for dishonestly removing RM50,000 belonging to a retired insurance agent into his company's bank account last year. Judge Azrul Darus meted out the fine on Muhammad Farid Mohamad Mohyar, 27, after he changed his plea to guilty on Wednesday, which was set for the first day of trial of the case. He paid the fine. Muhammad Farid was charged with removing the money belonging to Wong Wai Chan, 66, into the bank account of his company, Inspira Marketing Sdn Bhd, at Jalan Sri Hartamas 2, Taman Sri Hartamas, here on July 5, 2024. The charge, under Section 424 of the Penal Code, for dishonest or fraudulent removal of property, provides a jail term of up to five years or a fine or both, if convicted. During mitigation, lawyer Sr. Muniandy, representing Muhammad Farid, told the court that his client was remorseful and repentant, and had no previous record of wrongdoing. "In this case, my client had accepted a part-time job offer advertised on Facebook and was then asked to register a company and a bank account for commission payment. "The accused admitted that he was negligent and had provided his account details to the job offeror, and that the transactions in the account were carried out while his account was held by a third party. The matter was not within the knowledge of the accused," said the lawyer. The prosecution was conducted by Deputy Public Prosecutor M. Saravanan. - Bernama
New Straits Times
14 hours ago
- New Straits Times
Summit Hotel USJ to undergo RM45mil refurbishment
KUALA LUMPUR: The Summit Hotel Subang USJ will undergo a major refurbishment and rebranding exercise costing up to RM45 million, following the appointment of Exsim Hospitality Bhd's unit as the new hotel operator and project manager. In a filing with Bursa Malaysia, Exsim Hospitality said its wholly owned subsidiary Mana Mana Holdings Sdn Bhd accepted the letter of offer from Maybank Trustees Bhd, acting on behalf of AmFIRST Real Estate Investment Trust, on Aug 6. The refurbishment works are expected to be completed and the hotel re-opened within 15 months, subject to mutually agreed adjustments. "The board, after having considered all aspects of the letter of offer, is of the opinion that the appointment is within the ordinary course of business of Exsim Hospitality and the acceptance is in the best interest of the company," it said. It added Mana Mana will receive a RM220,000 fee for its role as project manager and will enter into a tenancy agreement with the landlord. Under the agreement, the company will pay a base rent of RM600,000 per month, plus additional rent based on revenue sharing above a defined threshold. The tenancy will be effective for an initial term of three years, with automatic renewals for two further three-year periods unless terminated in advance. Exsim Hospitality said the appointment is expected to contribute positively to its net assets, earnings per share and gearing.
