THE Federation of Malaysian Manufacturers (FMM) lauded the Government for backtracking on its decision to hike up electricity and water rates recently.  

“We welcome the Government’s decision to not hike up utility rates despite the sharp increase in fuel and other electricity generation cost.  

“And we hope that the Government would continue to engage the industry should there be any potential higher Imbalance Cost Pass Through (ICPT) surcharge in the future, given the volatility in the global market particularly on the energy sector,” its president Tan Sri Soh Thian Lai said, in a statement.  

On June 21, the Government announced that it would remove subsidies for bottled cooking oil and lift the ceiling price for chicken and eggs and raise utility rates. 

Following criticism from many quarters, Putrajaya backtracked on the matter. 

“The Government decided the price of chicken in the market will not be floated. The new ceiling price will be announced in the near future by the minister. 

“And we will retain electricity and water tariff in Peninsular Malaysia as it is. 

“This decision proves that the Government is committed to safeguarding the interest of Keluarga Malaysia so that they are not burdened with the rising cost of living,” Malaysiakini reported Prime Minister Datuk Seri Ismail Sabri Yaakob as saying.  

Touching on the matter, Soh praised the Government for its decision to backtrack given that energy rate is one of the industries’ major operational input costs.  

“And the Government’s decision to absorb the cost of fuel price, amounting to RM5.8 bil, to help maintain ICPT and water tariff at the current rate will ease the cost management of utilities during this challenging period,” he mentioned. – June 26, 2022