Rm5 2bil Power Subsidy Will Assist Smes Recovery Says Bosses Group
The Malaysian Employers Federation said the electricity subsidy will help restaurants, retail shops, bakeries, small workshops, farmers, livestock breeders, planters and similar businesses to become more sustainable.KUALA LUMPUR: The RM5.2 billion electricity subsidy recently announced by the government will greatly assist the majority of domestic and non-domestic consumers to face higher costs for products and services.
Malaysian Employers Federation (MEF) president Syed Hussain Syed Husman said without the subsidy, micro, small, and medium-sized enterprises, including restaurants, retail shops, bakeries, small workshops, farmers, livestock breeders, planters and similar businesses, would be burdened with increased electricity tariffs.
“It is important that businesses, especially small enterprises, are assisted in their efforts to recover and become more sustainable. At the same time, this will assist them to stabilise their labour force.
Ads by Kiosked“With appropriate assistance and the establishment of a more conducive business environment, businesses will be able to create better-quality jobs to provide employment opportunities for new graduates,” he said in a statement today.
On June 16, the government agreed to allocate RM5.2 billion in electricity subsidy to mitigate the effects of the electricity tariff adjustment in Peninsular Malaysia for the period of July 1 to Dec 31, 2023.
The subsidy is to ensure the majority of domestic consumers and non-domestic low-voltage consumers would not be affected by the electricity tariff adjustment. High-voltage and medium-voltage non-domestic consumers would also see a decrease in their electricity cost.
Syed Hussain hoped the government would soon share its plans on electricity tariff adjustment beyond Dec 31, 2023.
“We hope the government would continue to provide an electricity tariff adjustment subsidy for 2024 to enable businesses to fully recover in a volatile world market due to the continued Ukraine-Russia conflict and expected extreme weather conditions that may have an impact on the supply of food.
“The government’s assistance will go a long way towards ensuring the economic development of the country,” he said.
Ads by KioskedSyed Hussain also welcomed the natural resources, environment and climate change ministry’s commitment to encourage energy efficiency practices and the transition to renewable energy use through the installation of solar photovoltaic systems as an option for consumers to better manage their electricity bills. - FMT
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