Friday 29 Mar 2024
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KUALA LUMPUR (July 2): The Federation of Malaysian Manufacturers (FMM) says the government’s decision to impose an electricity surcharge of 1.35 sen per kilowatt hour (kWh) for non-domestic customers with effect from yesterday, will raise manufacturers’ sales cost by between 1% and 2%.

This will have a major impact on the manufacturing sector, said FMM president Datuk Soh Thian Lai, urging the government to defer the implementation of the surcharge until economic conditions improve.

Soh pointed out that FMM had urged the government last month to stick with the current electricity tariff rates until next year, to help relieve manufacturers’ energy cost burden.

“We have suggested to the government to continue with the current rate without any increase until next year, because our cost of doing business is increasing every year.

“The government can increase the rate one year later and take action after everything has stabilized,” he told a press conference, after FMM’s corruption-free pledge signing with the Malaysian Anti-Corruption Commission (MACC).

In terms of cost of goods sold, the surcharge will cause it to “increase by 1% to 2% to the entire manufacturing sector”, Soh added.

“So, if the cost increases every year, how are we going to be competitive? We would like the government to be more careful (in making decisions), because Malaysia is still dependent on exports goods (for income),” he said.

FMM would like to engage with the government, especially the minister of international trade and industry, to voice its recommendations, Soh said.

“They (Pakatan Harapan) just formed a new government and they just appointed the relevant ministers.

“We (FMM) would like to have open dialogues with the government and minister of MITI to propose our recommendations to the government on how and what they can do for the manufacturing sector,” he said.

Soh said he had represented FMM at a recent meeting with the Council of Eminent Persons to propose 20 recommendations to the government. He however, did not give details of the recommendations.

On today’s signing ceremony, Soh said it involved 235 companies from throughout the country.

FMM is committed to cooperating with MACC to combate corruption by reinforcing the federation’s commitment and desire for a transparent and corruption-free business environment, Soh said.

“Regardless of size, industry or country of operation, every company is exposed to some degree of corruption risk.

“Proactive companies would identify the danger early and begin developing management strategies,” he added.

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