KUALA LUMPUR, June 25 — The electricity subsidy of RM5.2 billion recently announced by the government will greatly assist the majority of domestic and non-domestic consumers to weather the higher costs of products and services, said the Malaysian Employers Federation (MEF).

President Datuk Dr Syed Hussain Syed Husman said that without the subsidy, micro, small, and medium enterprises (MSMEs), including restaurants, retail shops, bakeries, small workshops, farmers, livestock breeders, planters and similar businesses, would be burdened with increased electricity tariffs.

"It is important that businesses, especially the MSMEs, are assisted in their efforts to recover their businesses and be more sustainable and, at the same time, assist to stabilise the labour market.

"With appropriate assistance and establishment of more conducive business environment, businesses will be able to create better quality new jobs to provide employment opportunities to the new graduates,” he said in a statement today.

On June 16, the government agreed to allocate RM5.2 billion electricity subsidy to mitigate the effects of the electricity tariff adjustment in Peninsular Malaysia for the period of July 1 to Dec 31, 2023.

The subsidy is to ensure that the majority of domestic consumers and non-domestic low voltage consumers would not be affected by the electricity tariff adjustment, while high-voltage and medium-voltage non-domestic consumers would see decrease in their electricity cost.

Meanwhile, Syed Hussain expressed his wish that the government would soon share the plan on electricity tariff adjustment beyond Dec 31, 2023.

"We hope that the government would continue to provide electricity tariff adjustment subsidy for 2024 to enable businesses to fully recover amid volatile world market due to continued Ukraine-Russia conflict, and extreme weather conditions that may have an impact on the supply of food.

"The government assistance will go a long way to ensure the economic development of the country,” he said.

Syed Hussain also welcomed the Ministry of Natural Resources, Environment, and Climate Change’s commitments to encourage energy efficiency practices and the transition to renewable energy use through the installation of solar photovoltaic (PV) systems as an option for consumers to better manage their electricity bills.

"(We hope) that the domestic and non-domestic consumers take advantage of the relaxations on the conditions under the Net Energy Metering Programme and Self-Consumption for Solar PV Installation Programme for installation of solar PV system and support the initiatives for better environmental sustainability and at the same time reduce their overall electricity bills,” he added. — Bernama