KUALA LUMPUR: Operators of malls, retailers, theme parks and family attractions, as well as building management associations, are among organisations who are up in arms over the recently announced electricity surcharge for the sector.
They are referring to an immense 540 per cent increase in the electricity surcharge from the current 3.7 sen to 20 sen.
"With this surcharge, the electricity bills of larger commercial consumers are expected to increase imminently and immediately by between 25 to 30 per cent, depending on the electricity tariff class.
"As electricity comprises a very significant component of operational costs, it will mean an immediate and immense hike in operational costs once again, since the last electricity surcharge in March 2022," they said in a joint statement today.
The statement was issued by the Building Management Association of Malaysia; Malaysia Shopping Malls Association; Federation of Malaysian Business Associations; Malaysian Association of Theme Parks and Family Attractions; Bumiputera Retailers Organisation; and, Malaysia Retailers Association.
They added that it must be understood that the industry has not fully recovered from the impact of the Covid-19 pandemic.
They said everyone in various industries were still reeling from the shock that operational costs will increase exponentially with the current inflationary hikes in all input costs, compounded with an increase in wages and shortage of labour and the forecasted recession expected in 2023.
"As the increase in electricity is due to the transient cost of petrol and gas due to the Ukraine war, which is temporary, and that any increase in the prices of goods and services would not retreat when the situation normalises, we believe the government should bear any temporary subsidy deemed necessary and not pass the temporary hikes to the production sector and, ultimately, consumers.
"The estimated 25 to 30 per cent hike in the cost of electricity from the surcharge is far too substantial to be absorbed and has to ultimately be passed on to consumers, thereby resulting in even higher costs of living and the resultant compounding effect," the statement said.
They added that due to this increased cost of doing business, especially since they do not have sufficient time to adjust and adapt, the rakyat's disposable incomes would be negatively impacted.
"We might have survived the pandemic, but are not sure we will survive the electric shock"
They urged the government to reconsider the increase in electricity surcharge for the greater good of the national economic recovery.
Last Friday, the government announced that medium voltage and high voltage users, including multinational companies, will be charged a surcharge of 20 sen per kWh for the period of Jan 1 to June 30, 2023.