Prime Minister Datuk Seri Anwar today stated that electricity tariffs must increase in the second half of this year to improve the national education system and support impoverished groups.
He acknowledged that this move might cause inconvenience or adverse effects and expressed the government's willingness to consider other opinions.
The Prime Minister assured that the tariff increase will be controlled and necessary, as prices need to be adjusted over time.
He told attendees at the Chinese Chamber of Commerce's Chinese New Year luncheon at the Shangri-La Hotel in Kuala Lumpur: “In my view, this decision is necessary, and prices must rise.”
“How do I improve education? How do I help the impoverished? How do I upgrade roads?
“How do I improve education? How do I help the impoverished? How do I upgrade roads?
“How do I enhance healthcare facilities? All this needs to be achieved through a slight tax increase.”
Anwar added: “A slight increase is acceptable.”
According to a notice from Tenaga Nasional, in the fourth regulatory period from 2025 to 2027, the base electricity tariff of Peninsular Malaysia will increase by 14.2% and is proposed to be implemented starting July 1, 2025. Tenaga Nasional explained that the tariff increase is mainly due to rising fuel costs.
In an earlier speech, Datuk Ng Yih Pyng, President of the Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM), expressed concern about the tariff hike announced by the national energy company.
“The increase in electricity tariffs will have a chain reaction throughout the supply chain and could potentially exacerbate consumer inflation.
“Faced with additional operational cost pressure, we sincerely urge the government to maintain the current electricity tariff levels between 2025 and 2026.”
“Faced with additional operational cost pressure, we sincerely urge the government to maintain the current electricity tariff levels between 2025 and 2026.”
He added that this measure is intended to alleviate the financial burden on businesses and mitigate inflationary pressure resulting from rising operational costs.
Prime Minister and Finance Minister Anwar stated that pushing for digital transformation development is very necessary.
He pointed out that building new faculties and related training requires substantial funds.
He mentioned the United States, Europe, and China are focusing on developing these centers of excellence.
“They not only need government funding but also large-scale private investment.”
He urged national chambers to work together to promote national progress, as chambers comprised of businessmen and entrepreneurs play a very important role in creating new economic growth for the country.
“I have said that Malaysia needs to establish a coalition of chambers—the Chinese Chamber, Malay Chamber, Indian Chamber, Sabah Chamber, and Sarawak Chamber, to listen to their opinions and understand how they can work as a team to find ways for further improvement.
“Of course, we must not omit the poor, urban poor, farmers, fishermen, breeders, and smallholders, but for new economic growth, the role of businessmen, entrepreneurs, and chambers is very important.”