Electricity Tariff

The government's decision to lower electricity tariff is indeed an ang pow for the CNY. Considering the general increase of prices of all goods, this is actually a good news during bad time.

It is therefore hoped that following the decrease in electricity tariff, all businesses will pass on this savings to the consumers in the form of lower prices of goods and services. 

Electricity cost forms about 7-10% of total costs which is a major business operating expense. Those businesses and industries operating around the clock will incur an even higher energy bill. 

Since this major operating cost has been lowered, SME should also within their capacity lower their prices accordingly. 

I believe that lower electricity cost will make us a more conducive business environment and preferred foreign direct investment destination. 

Tenaga Nasional Bhd should also practise a more transparent electricity tariff mechanism so that users are aware of how their bills are calculated. 

Anyway, it is important that manufacturers and suppliers who form the major upstream supply chain should take the lead in reducing prices so that the vendors at downstream supply chain can reduce theirs accordingly. 

The government should be in time like this taking various measures to monitor the situation and enforce relevant policies to prevent inflation from getting out of control.