THE price of electrical appliances will increase next month due to the depreciation of the ringgit and manufacturers’ fear of an economic slump, said dealers.

For a start, they said the prices of imported air-conditioners are set to increase by between 5% and 8%.

Prices of other electrical appliances are set to follow, they warned.

The Malaysian Electrical Appliances Dealers’ Association president Ng Chye Weng said the association had been notified of the increase by some of their foreign manufacturers.

“We have been notified by the manufacturers of the price increase starting next month,” he told The Malaysian Insight.

Ng gave two reasons for the increase – the depreciation of the ringgit against the US dollar and jittery manufacturers cutting back on output, adopting a safe stance as some countries report they are heading into a recession.

He said the continued depreciation of the ringgit is the main cause of the price increase.

“In international trade the currency in use is the US dollar. We therefore have to use US dollars in dealing with manufacturers in China, Vietnam, Indonesia and elsewhere,” he said.

“With no end in sight of the ringgit sliding down in value, the cost of imported appliances would simply get more expensive.”

Some manufacturers cutting back on their production triggered a supply problem, which made matters worse, he added.

Air-conditioners, fans and portable coolers were in-demand items during the heatwave earlier in the year.

Ng said the new incoming consignments will come with a new price tag.

If the ringgit continues to plummet, Ng did not rule out another increase in the following month.

“As a matter of urgency, I hope the government can find a way to stabilise the ringgit, which is important for both businesses and consumers,” he added.

The Selangor & Wilayah Perseketuan (KL) Electrical Home Appliances Dealers Association chairman Kee Keng Huat said they too have received such a notice from foreign manufacturers.

He said appliances included those that are imported in as knocked down parts and assembled locally.

Kee, however, said he was a little confused by the notice.

“Not all the manufacturers have issued the notice. We are not sure which appliances will be affected by the price increase.

“I guess it will take some time before things become clearer.”

Last month, the ringgit fell for more than a week against the US dollar, once falling to RM4.625 to the dollar.

On June 15, the ringgit again depreciated against the US and Singapore dollar, falling to RM4.638 against the US dollar at one point, to a record low of RM3.46 against the Singapore dollar.

On June 27, Bank Negara Assistant Governor Adnan Zaylani Mohamad Zahid pointed out that the recent devaluation of the ringgit, did not reflect the fundamentals of the Malaysian economy, and the bank will continue to intervene in the foreign exchange market to stop the transitional fluctuations of the ringgit. –  July 6, 2023.