Dato’ G Kumaar Aamaan: Electricity Tariff Hike Will Burden Businesses, Government Should Postpone

KUALA LUMPUR, FEBRUARY 4, 2025 – The Chief Editor of Ottrangknews, Dato’ G Kumaar Aamaan, has urged Prime Minister Datuk Seri Anwar Ibrahim to postpone any increase in electricity tariffs due to its significant impact on the business sector, especially small and medium enterprises (SMEs).

He emphasized that while the government assures that the tariff hike will be controlled, in reality, it will still increase operational costs for businesses and put pressure on the economy as a whole.

Rising Operational Costs, Businesses Burdened

According to Dato’ G Kumaar, sectors such as manufacturing, restaurants, retail, and production heavily rely on electricity. Any increase in tariffs will directly affect profit margins, forcing businesses to raise the prices of their products and services.

“This tariff hike will cause the prices of goods to soar, ultimately burdening consumers. Businesses will also lose competitiveness, especially when facing cheaper imported products,” he said.

SMEs Threatened, Investments and National Economy at Risk

SMEs, which operate with limited capital, will be the most affected group. With rising operational costs, many small businesses may be forced to downsize their operations or even shut down entirely.

“This is not just a business issue; it has a significant impact on the national economy. When businesses face financial pressure, they will reduce their workforce, leading to higher unemployment rates and reduced purchasing power among the people,” he added.

Furthermore, Dato’ G Kumaar warned that an electricity tariff hike could lead to a loss of interest from both foreign and local investors. High energy costs make the country less competitive compared to neighboring countries, slowing down national economic growth.

Suggestions to the Government

He proposed that the government consider the following measures:

1. Exemption or Discounted Tariffs for SMEs – The government could introduce special rates or subsidies for SMEs to ensure their continued operations.

2. Incentives for Green Energy Use – Companies transitioning to renewable energy sources like solar should be offered incentives or tax breaks.

3. Gradual Implementation – If a tariff increase is unavoidable, it should be done gradually to give businesses time to adjust.

4. Review of Tariff Structure – The electricity tariff should be reviewed based on business categories to ensure sectors that are most affected receive more affordable rates.

“I hope that YAB Prime Minister will consider these impacts carefully before implementing any tariff hikes. A wise and strategic decision is crucial to ensure the well-being of businesses and the stability of the national economy,” stressed Dato’ G Kumaar.

He called for the government to exercise caution in making decisions related to electricity tariffs to avoid burdening businesses, investors, and citizens with unintended consequences.