KUALA LUMPUR: The rise of electricity tariffs is to improve the country's education system and support the poor, says Datuk Seri Anwar Ibrahim.
The Prime Minister assured that the tariff increase would be manageable and necessary, as prices must adjust over time.
"How do I improve education? How do I assist the poor? How do I upgrade the roads?
"How do I enhance medical facilities? It is through a small tax increase," he stated during his keynote address at the Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM) Chinese New Year Reception 2025 on Monday (Feb 3).
"A slight increase is acceptable," he added.
He added that development for digital transformation is much needed.
Huge sums of funds are needed for new faculties and training in this area, he said.
He referenced the United States, Europe and China which have focused on these centres of excellence.
"They require not only government funds but also huge private sector investment," he said.
In an earlier speech, ACCCIM president Datuk Ng Yih Pyng expressed concern towards the announcement by Tenaga Nasional Berhad (TNB) that the base electricity tariff for Peninsular Malaysia would be raised by 14.2% under the Regulatory Period 4 between 2025 and 2027, and is proposed to be implemented starting July 1, 2025.
"The rise in electricity costs will have domino effects on the whole supply chain, potentially passing through onto consumer inflation.
"Given the punching of additional operating costs, we sincerely urge the government to maintain electricity tariffs at current levels throughout 2025-2026," he said.
This is to ease the financial burden on businesses and mitigate inflationary pressures from increased operating costs, he added.
