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PETALING JAYA: A trade group has urged the government to exclude software developers, telecommunication companies (telcos) and data centres from the electricity tariff hikes to be imposed on large and multinational companies (MNCs).
Pikom chairman Ong Chin Seong expressed concern that the cost of higher electricity tariffs may eventually be passed down to consumers and contribute to inflation.
“Collectively, we feel that imposing the electricity tariff hike will start to discourage potential MNCs from operating in Malaysia and could also encourage existing MNCs to look elsewhere,” he said in a statement today.
If the tariff hike is confirmed, he said, then the government may wish to consider a subsidy plan or raising the prices in phases.
“We also need to consider investors such as cloud hyperscalers who are employing a lot of our highly-skilled local workforce. The price hike will encourage them to move and look elsewhere,” Ong said.
Last week, Prime Minister Anwar Ibrahim said the government had no plans to increase electricity tariffs for households as it did not want to burden the people.
However, he said, MNCs that export products will be charged the hike, adding that the government only sought to increase tariffs for the wealthy and large corporations.
In January, the Energy Commission announced that there would be no increase in electricity charges for residential consumers in the peninsula until Dec 31, 2024.
A surcharge of 3.7 sen/kWj will be imposed on all non-domestic users, such as commercial and industrial companies. - FMT
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