The electricity subsidy of RM5.2 billion recently announced by the government will greatly assist the majority of domestic and non-domestic consumers to weather the higher costs of products and services, the Malaysian Employers Federation (MEF) said.

Its president Syed Hussain Syed Husman said that without the subsidy, micro, small, and medium enterprises (MSMEs), including restaurants, retail shops, bakeries, small workshops, farmers, livestock breeders, planters and similar businesses, would be burdened with increased electricity tariffs.

“It is important that businesses, especially the MSMEs, are assisted in their efforts to recover, be more sustainable and assist to stabilise the labour market.

“With appropriate assistance and establishment of more conducive business environment, businesses will be able to create better quality new jobs to provide employment opportunities to new graduates,” he said in a statement today. 

On June 16, the government agreed to allocate the RM5.2 billion electricity subsidy to mitigate the effects of the electricity tariff adjustment in Peninsular Malaysia for the period of July 1 to December 31, 2023. 

The subsidy is to ensure that the majority of domestic consumers and non-domestic low usage consumers would not be affected by the electricity tariff adjustment, while high and medium usage non-domestic consumers would see a decrease in their electricity costs.

Hussain hopes the government would soon share the plan on electricity tariff adjustment beyond December 31, 2023. 

“We hope that the government would continue to provide electricity tariff adjustment subsidy for 2024 to enable businesses to fully recover amid volatile world market due to continued Ukraine-Russia conflict, and extreme weather conditions that may have an impact on food supply. 

“Government assistance will go a long way to ensure the economic development of the country,” he said. 

He also welcomed the Natural Resources, Environment, and Climate Change Ministry’s commitment to encourage energy efficiency practices and the transition to renewable energy use through the installation of solar photovoltaic (PV) systems as an option for consumers to better manage their electricity bills.

“We hope domestic and non-domestic consumers take advantage of the relaxations on the conditions under the Net Energy Metering Programme and Self-Consumption for Solar PV Installation Programme and support the initiatives for better environmental sustainability, while reducing their overall electricity bills,” he added. – Bernama, June 25, 2023.