KUALA LUMPUR: The 800kWh electricity subsidy threshold for domestic households in Peninsular Malaysia should be extended beyond Dec 31 to help at least one million households cope with the rising cost of living, says Datuk Seri Dr Wee Ka Siong.
The MCA president said the threshold should be made permanent.
“There has been no announcement in Budget 2027 on whether this threshold limit will be extended into 2027.
“Lowering the threshold back down to 600kWh could see at least a million households bearing additional costs,” the Ayer Hitam MP said when debating Budget 2027 in the Dewan Rakyat yesterday.
Dr Wee also called for small and medium enterprises (SMEs) and commercial consumers to receive similar relief, saying higher electricity bills for food processing factories and component manufacturers could raise the prices of locally made products.
He urged the government to fund the exemption transparently through the national Budget instead of requiring Tenaga Nasional Bhd to bear the costs.
He also called for the 8% service tax on electricity consumption exceeding 800kWh to be waived.
“If water supplies can be exempted, why not electricity?” he asked.
In September, the government announced that electricity bill subsidies for domestic consumers would be extended to households using up to 800kWh monthly until Dec 31 as an immediate measure to ease cost-of-living pressures.
Households within the threshold are exempt from the Automatic Fuel Cost Adjustment, retail charges and service tax.
TNB said the measure would protect more than eight million domestic consumers from higher electricity bills, including an additional one million compared with the previous 600kWh threshold.
On another matter, Dr Wee questioned whether government-linked companies (GLCs), government-linked investment companies (GLICs) and statutory bodies were being asked to fund responsibilities that should be borne by the Federal Government.
He said commitments in higher education, healthcare, welfare, national heritage and utilities should be funded through parliamentary-approved federal allocations, not contributions from companies and statutory bodies.
Dr Wee also raised concerns over the overall public sector deficit, which he said was projected to increase from RM87.1bil in 2025 to RM131.9bil in 2026 and RM162.1bil in 2027.
“In just two years, the public sector deficit has increased by approximately RM75bil, or 86%. This is almost double the 2025 figure. Why does the gap between the government’s deficit and the overall public sector deficit continue to widen?” he said.
