Latest news with #Nivas
The Star
01-08-2025
- Business
- The Star
Energy-intensive sectors feeling the heat from tariff hike
PETALING JAYA: Businesses in energy-intensive sectors are feeling the strain of higher electricity costs, with some reporting up to a 10% spike in monthly bills following recent tariff adjustments, according to a business group. 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.
Straits Times
10-05-2025
- Business
- Straits Times
Malaysia could face food shortage if India-Pakistan conflict worsens
Malaysia imports basmati rice from both India and Pakistan. PHOTO: THE STAR/ASIA NEWS NETWORK PETALING JAYA - The open hostilities between India and Pakistan could see Malaysia facing a food shortage. If the South Asian conflict escalates into a full-blown war, there could be a disruption in the supply of food items and other essentials in Malaysia, which is worrying for many traders. Rice, especially parboiled and basmati grains, spices, onions, dhal, sugar, buffalo meat, pharmaceuticals and industrial raw materials like iron and steel are key imports from India. From Pakistan, Malaysia imports basmati rice, textiles, fruits, beef and some niche food items, says Kuala Lumpur and Selangor Indian Chamber of Commerce and Industry (KLSICCI) president Nivas Ragavan. 'Disruptions in supply chains are likely, especially in the logistics and shipping routes between the Indian subcontinent and South-East Asia,' he said. 'Prices may spike for critical food items like rice, onions, dhal and spices, particularly from India. Alternative sourcing will not only be more expensive, it may not match the volume or quality Malaysia is used to,' he added. Traders are hoping that there can be peace soon between the two neighbours with a history of bad blood. 'We continue to hope that cooler heads will prevail in the region, and that dialogue and diplomacy will be prioritised over confrontation,' said Mr Nivas. Although a war will definitely have an impact on businesses in Malaysia, not all areas will be affected, said the Malaysian Indian Textiles and General Stores Association. With southern India relatively unaffected by the conflict, supplies of textiles and spices from this region will continue as usual, said association secretary-general Maheswary Ramasamy. She said spices, materials, ready-made garments, sarees, prayer items, silverware, brassware, kitchen utensils, food products and statues are imported from India, while items likes carpets and clothing come from Pakistan. 'If there is war, the supply may drop, causing prices to increase,' Datin Maheswary said. She said about 80 per cent to 90 per cent of ready-made traditional wear and 50 per cent of sarees come from north India. 'Rice, sugar, onions, dried chilli and other condiments also come from India. Almost 40 per cent of our rice comes from India. Also basmathi comes from Pakistan,' she added. Mr Akbar Khan, who runs a carpet business said most of his goods are sourced from Pakistan. 'If it develops into a full blown war, I may have to look to other markets. I hope the conflict will not persist,' he said. Mydin Hypermarket's managing director Ameer Ali Mydin, however, does not see much of an impact on supply at the moment. 'I don't think there will be shortages,' he said, adding that speculation, not a real shortage, may cause prices to rise. 'For frozen buffalo, the exports are normally done on long term contracts,' he said. As for rice, he said Malaysia had multiple import sources and weak market prices. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the conflict may cause traders and investors to be more cautious. 'Gold prices have stayed elevated, suggesting a flight-to-safety phenomenon. Beyond that, it could result in rising cost of doing business especially in the logistics sector, especially as airlines have to reroute flights. 'Malaysia's exports to India and Pakistan only comprise about 3.4 per cent and 0.4 per cent of total exports so the direct impact may seem somewhat limited,' he said. India launched Ops Sindoor on May 7 in response to a terror attack in Pahalgam in Kashmir, where 26 tourists were killed. THE STAR/ASIA NEWS NETWORK Join ST's Telegram channel and get the latest breaking news delivered to you.
The Star
09-05-2025
- Business
- The Star
Imports from South Asia may be affected if tensions worsen
PETALING JAYA: The open hostilities between India and Pakistan could see Malaysia facing a food shortage. If the South Asian conflict escalates into a full-blown war, there could be a disruption in the supply of food items and other essentials here, which is worrying for many traders. Rice, especially parboiled and basmati grains, spices, onions, dhal, sugar, buffalo meat, pharmaceuticals and industrial raw materials like iron and steel are key imports from India. From Pakistan, Malaysia imports basmati rice, textiles, fruits, beef and some niche food items, says Kuala Lumpur and Selangor Indian Chamber of Commerce and Industry (KLSICCI) president Nivas Ragavan. 'Disruptions in supply chains are likely, especially in the logistics and shipping routes between the Indian subcontinent and South-East Asia,' he said. 'Prices may spike for critical food items like rice, onions, dhal and spices, particularly from India. Alternative sourcing will not only be more expensive, it may not match the volume or quality Malaysia is used to,' he added. Traders are hoping that there can be peace soon between the two neighbours with a history of bad blood. 'We continue to hope that cooler heads will prevail in the region, and that dialogue and diplomacy will be prioritised over confrontation,' said Nivas. Although a war will definitely have an impact on business here, not all areas will be affected, said the Malaysian Indian Textiles and General Stores Association. With southern India relatively unaffected by the conflict, supplies of textiles and spices from this region will continue as usual, said association secretary-general Datin Maheswary Ramasamy. She said spices, materials, ready-made garments, sarees, prayer items, silverware, brassware, kitchen utensils, food products and statues are imported from India, while items likes carpets and clothing come from Pakistan. 'If there is war, the supply may drop, causing prices to increase,' she said. She said about 80-90% of ready-made traditional wear and 50% of sarees come from north India. 'Rice, sugar, onions, dried chilli and other condiments also come from India. Almost 40% of our rice comes from India. Also basmathi comes from Pakistan,' she added. Akbar Khan, who runs a carpet business said most of his goods are sourced from Pakistan. 'If it develops into a full blown war, I may have to look to other markets. I hope the conflict will not persist,' he said. Mydin Hypermarket's managing director Datuk Ameer Ali Mydin, however, does not see much of an impact on supply at the moment. 'I don't think there will be shortages,' he said, adding that speculation, not a real shortage, may cause prices to rise. 'For frozen buffalo, the exports are normally done on long term contracts,' he said. As for rice, he said Malaysia had multiple import sources and weak market prices. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the conflict may cause traders and investors to be more cautious. 'Gold prices have stayed elevated, suggesting a flight-to-safety phenomenon. Beyond that, it could result in rising cost of doing business especially in the logistics sector, especially as airlines have to reroute flights. 'Malaysia's exports to India and Pakistan only comprise about 3.4% and 0.4% of total exports so the direct impact may seem somewhat limited,' he said. India launched Ops Sindoor on May 7 in response to a terror attack in Pahalgam in Kashmir, where 26 tourists were killed.
