AS much as possible, businesses should not rely on subsidies, nor should they operate under the assumption that the prices of goods and services they pay for will remain unchanged for years or decades.
Simply put, businesses cannot know whether they are truly competitive unless they operate under conditions where prices reflect their market value.
In the private sector, there is a lot of opposition to the onslaught of government measures aimed at cutting spending or raising revenue at a time of much external uncertainty.
Most of these measures are slated for implementation in the second half of 2025.
The latest measure – the revision of container charges for Port Klang, scheduled to start in stages from next month until early 2027 – has raised the ire of the Federation of Malaysian Manufacturing (FMM).
FMM president Tan Sri Soh Thian Lai has expressed strongly his concerns in several statements over the past week, noting that these measures will exert cost pressures on businesses, which will be passed down the supply chain and ultimately impact consumers.
His concerns, shared by other business groups opposing the measures, are valid, but only up to a certain extent.
The fact remains that prices cannot stay at the same levels for years or decades, notwithstanding the issues that the FMM have pointed out regarding port operations.
What is truly needed – and what the FMM has rightly pointed out – is greater transparency through detailed disclosures and meaningful consultations with stakeholders.
The revision warrants scrutiny, but the FMM should not expect a U-turn of the charge adjustments.
As for the timing of these measures, there is never a good time to raise costs for businesses – even when the economy is growing at a steady clip, let alone now, amid fluid external factors like US tariffs and geopolitical tensions.
Businesses will just have to adjust and stay competitive.
Already a subscriber? Log in
Get 20% OFF The Star Digital Access
Cancel anytime. Ad-free. Unlimited access with perks.
