PETALING JAYA: A bunch of 11 business associations has warned that the sudden and large electrical energy tariff hike might be the tip of many struggling outfits.
“At this important juncture the place all companies, huge and small, are struggling in survival and revival mode, the hike might be the loss of life knell of many enterprises,” they mentioned in a joint assertion on Tuesday (Feb 8).
The sudden and quick implementation of the rise was stunning because it was executed with none discussions with stakeholders and shoppers, they added.
“Furthermore, it got here into impact on Feb 1 with a hike of 15% (or as much as 25% on off-peak tariff) with the federal government warning to not move on the hike to shoppers,” they mentioned within the assertion.
They added that customers are equally in a weakened monetary scenario and attempting desperately to get better.
The anticipated hike in value of products and providers ensuing from the tariff enhance will additional minimize their buying energy, leading to dampened commerce volumes and turnover, they mentioned.
“The unprecedented electrical energy hike along with flow-on inflationary impression of products and providers will (set new pricing ranges) which won’t retreat though provide chain disruptions are overcome.
“We enchantment to the federal government to not gasoline and set the practice of inflation additional as presently even with out the hike, inflationary pressures are being skilled by all shoppers,” they added within the assertion.
The groups referred to as on the federal government to reverse the choice till the scenario improves.
The groups embody the Building Management Association of Malaysia, Malaysia Retail Chain Association, Real Estate and Housing Developers Association and Malaysia Shopping Mall Association.
