Will businesses raise prices despite government pleas?

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Government Urges Businesses to Maintain Prices Amidst Electricity Tariff Adjustments

The Malaysian government, through Prime Minister Datuk Seri Ismail Sabri Yaakob, has urged companies and industry players not to increase the prices of goods, despite anticipated rises in electricity bills. The Prime Minister indicated that the projected increase in electricity costs for commercial entities and industries is not substantial enough to warrant a price hike. To enforce this, the Domestic Trade and Consumers Affairs Ministry (KPDNHEP) has been directed to engage with major companies and industries to prevent any upward adjustments in product pricing.
Rationale Behind the Price Freeze Plea

The Prime Minister's appeal stems from adjustments to electricity tariffs that will affect commercial and industrial users. These users will no longer receive a previous rebate of 2 sen per kilowatt-hour (kWh) and will instead face a surcharge of 3.70 sen/kWh on their electricity consumption. This change is part of a broader government strategy to rectify subsidy allocation, moving away from blanket subsidies that previously saw over RM1 billion directed towards industrial and commercial companies. The aim is to rechannel aid more effectively to targeted groups, particularly the poor.
Protection for Domestic Consumers

Crucially, the government has affirmed that domestic electricity users will not bear the brunt of these tariff changes. Regardless of the size of their homes or their income classification, whether B40 or M40, all household consumers will be exempt from electricity tariff hikes. This measure underscores the government's commitment to shielding ordinary citizens from increased living costs.
Broader Economic Measures Under Discussion

In parallel with direct appeals to businesses, a high-level meeting of the Cabinet Committee on Cost of Living is scheduled. This committee, which will include representatives from KPDNHEP, the Ministry of Agriculture and Food Industry (MAFI), and the Ministry of Transport, will deliberate on various strategies to alleviate the pressure of rising prices. For the first time, consumer associations like the Federation of Malaysian Consumers Associations (FOMCA) and the Consumers’ Association of Penang (CAP) have been invited to participate in these discussions, signalling a more inclusive approach to addressing cost of living concerns.

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Will businesses raise prices despite government pleas?

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