Prime Minister Datuk Seri Anwar Ibrahim has assured that the upcoming electricity tariff increase, set to take effect on July 1, will not impact 85% of the population. The hike, he explained, will be limited to industries and the wealthiest households under the Imbalance Cost Pass-Through (ICPT) mechanism.
Speaking in the Dewan Rakyat, Anwar emphasized that the increase—kept below 14%—is necessary to support national development initiatives, including improvements to schools, hospitals, and other public welfare programs. He justified the decision by stating that higher tariffs for industries and affluent individuals would generate crucial funds without burdening the majority of citizens.
“I told the business community yesterday, we will not compromise; we have to increase the tariffs, but it will not affect 85 per cent of the population...so listen carefully, but not with angry sentiments,” he said in reply to Wan Ahmad Fayhsal Wan Ahmad (PN-Machang) during the Minister's Question Time in the Dewan Rakyat
Addressing concerns raised by opposition MP Wan Ahmad Fayhsal Wan Ahmad (PN-Machang), Anwar dismissed allegations of economic unpredictability, often referred to as a "flip-flop" economy. He refuted such claims, asserting that Malaysia's economic performance remains strong, supported by factual data.
Anwar stressed that Malaysia’s economic policies are strategically planned to ensure long-term stability, with the government prioritizing sustainable fiscal management over short-term populist measures. He further highlighted that while economic fluctuations are inevitable due to global challenges, Malaysia's investment climate has improved significantly, reinforcing the country’s growth trajectory.
The decision to implement a selective electricity tariff hike aligns with the government’s broader efforts to balance economic growth with social responsibility. By exempting the majority from higher rates, the government aims to ease the financial strain on ordinary citizens while ensuring that industries and high-income groups contribute more to national development.
As Malaysia moves forward with this adjustment, the government remains firm in its stance, asserting that such measures are necessary for long-term economic resilience. Whether the opposition continues to challenge this approach or not, the administration appears committed to its strategy of targeted fiscal policies.
With the electricity tariff hike now confirmed, industries and high-income households will need to prepare for increased costs, while the majority of the population remains unaffected by the change. The government’s focus, as reiterated by Anwar, is to ensure equitable economic policies that benefit the nation as a whole.
Information Source: The Vibes/ Bernama
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