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FMM Press Statement: Electricity Tariff Surcharge

Kuala Lumpur, July 02, 2018 - The Federation of Malaysian Manufacturers (FMM) notes with concern the electricity tariff surcharge of 1.35 sen/kWh which is effective on July 1, 2018. The effective increase in electricity cost to the manufacturing sector is estimated to be higher than 6% in view of the rebate enjoyed in the previous six months. The impact will vary according to tariff category and electricity consumption of each individual company. The short notification also does not give sufficient time to the industry to adjust, especially exporters, where contract terms would have been agreed upon earlier.

FMM urged the Government to maintain electricity tariffs at this present time due to the existing many regulatory cost burdens. Furthermore, the natural gas price has also been increased recently. For industry that uses natural gas, the increase in electricity tariff means a double increase in energy costs. Alternatively, the Imbalance Cost Pass Through (ICPT) could have been moderated to take into consideration the recent natural gas price increase by removing the rebate without imposing any surcharge.

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About FMM
The Federation of Malaysian Manufacturers (FMM) has been the voice of the Malaysian manufacturing sector since 1968. Representing over 10,000 member companies (3,000 direct and 7,000 indirect) from the manufacturing supply chain, FMM is actively engaged with government and its key agencies at Federal, State and local levels. FMM is also well-linked with international organisations, Malaysian businesses and civil society. Apart from benefitting from FMM’s advocacy, FMM  members enjoy value-add services, including training, business networking and trade opportunities as well as regular information updates.

Media Enquiries:
Esther Boey, Senior Manager, Research & Communication
Tel : 03-6286 7200 | Email: eboey@fmm.org.my / webmaster@fmm.org.my
Website: www.fmm.org.my

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