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Monday, March 20, 2017

Malacca to raise electricity, gas tariff hike issue to gov't



The Malacca government will raise the issue of rising electricity and gas tariffs to the federal government in order to help polyester and textile manufacturer Recron (Malaysia) Sdn Bhd in Tanjung Kling in Malacca.
Chief Minister Idris Haron hopes the effort would bear fruit so as to help Recron stay competitive and operate cost-effectively in providing clothing raw materials effectively.
The company exports high-quality clothing raw materials for various brands, including Zara and Marks and Spencer, to 65 countries, he said, adding that the state government was very proud to have Recron on its shores.
Idris said the company was worried over the increase in electricity and gas tariffs as it could impede its ability to produce high-quality clothing raw materials at competitive prices.
"Even though the increase in electricity and gas tariffs is beyond our control, we can raise the matter at the federal level to ensure that the company remain in Malacca," he told reporters after visiting Recron's factory today.

Present were Malacca Company Affairs, Human Resources and NGO Committee chairperson MS Mahadevan and Recron director R Rakesh Gaur.
Meanwhile, Idris said investments totalling RM1.35 billion, including RM675.5 million in foreign investments were approved for Malacca by the Malaysian Investment Development Authority last year.
This year, the manufacturing sector is expected to contribute about RM13 billion to Malacca's gross domestic product.
Bernama

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