Prime Minister Dato' Seri Anwar Ibrahim has moved to dispel public concerns over an electricity tariff hike, assuring Malaysians that any increase will be minimal and will not unduly burden the majority of consumers.
Speaking at a Chinese New Year event hosted by the Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCIM), Anwar clarified that the reported 14% hike was a misinterpretation and that the actual increase, set for July 1, 2025, will be reviewed based on current price trends.
"Small, Small, Don’t Worry," Says Anwar
Anwar reassured the public that the increase would not be drastic, stating, “I don’t think it would be too large to the extent that it becomes cumbersome or a disadvantage to the community.”
He further explained that adjustments in electricity prices are necessary to reflect the cost of energy production. The prime minister also suggested that industries and wealthier consumers, who benefit from economic growth, should be prepared to contribute slightly more to sustain infrastructure, education, and healthcare improvements.
However, this lighthearted approach as encapsulated in his remark, “Small, small, don’t worry”, has sparked discussions over whether Malaysians can truly afford even a minor increase amid rising living costs.
Government’s Balancing Act: Economic Growth vs. Public Welfare
As reported last month, the discussion on tariff hikes emerged following Tenaga Nasional Berhad’s (TNB) proposal for a new base tariff of 45.62 sen per kilowatt-hour under Regulatory Period 4 (RP4), compared to the current 39.95 sen/kWh under RP3 (2022-2024). The proposed adjustment is part of the Imbalance Cost Pass-Through (ICPT) mechanism, which allows energy price fluctuations to be passed down to consumers.
Anwar reiterated that the government will not approve any increase that disproportionately impacts the lower and middle classes. 'The previous increase affected only the upper class, which I refer to as the super rich (mahakaya) or highly profitable industries,' he stated.
He emphasized that affordability remains a priority and that any drastic increase burdening livelihoods will not be approved.
TNB’s Position: No Final Decision on 14% Hike
Amid intense public speculation recently, TNB’s Chief Financial Officer, Datuk Nazmi Othman, confirmed that the government has yet to approve the proposed 14% tariff hike for the 2025-2027 period.
He assured that the current tariff structure, in place since 2014, will remain unchanged until at least June 30, 2025. Furthermore, the government plans to protect 85% of domestic consumers ie. roughly nine million households, by keeping their electricity rates affordable.
Public Concerns: Will “Small” Increases Snowball?
While Anwar’s statements attempt to ease fears, the key question remains: Will even a small rise in electricity costs snowball into an increase in consumer goods prices, further adding to the financial strain on Malaysian households already facing high inflation, rising food prices, and fuel adjustments?
For businesses, particularly small and medium enterprises (SMEs), any increase in operational costs could have broader implications for consumer pricing and economic stability.
The government faces the delicate task of balancing economic realities with public welfare. While a controlled tariff increase may be necessary, ensuring that it does not exacerbate the cost of living crisis will be crucial in maintaining public trust.
As Malaysians wait for further clarifications from TNB and the Energy Ministry, the assurance of a “small” increase may not be enough to allay the anxieties of those already struggling with the rising cost of living.
The next few months will determine whether the government’s approach to electricity tariffs truly prioritizes the rakyat or if “small” increases today lead to bigger burdens tomorrow.
By: Kpost
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