As news heats up over impending electricity tariff hikes in the second half of the year, it’s no surprise that many Malaysians feel uneasy. Recognising that rising costs confront energy companies—thanks to global price fluctuations, the worsening climate crisis, and the need to invest more in renewable energy. But even so, any changes that directly affect people’s daily lives must be handled with transparency, fairness, and careful planning.

While the short-term impact might not hit low-income families too hard straightaway, rising bills will eventually take a toll. For many households already struggling to make ends meet, higher electricity costs could be the tipping point, forcing them to cut back even more. That’s not the kind of pressure families should be facing.

Moreover, small and medium-sized enterprises (SMEs) will bear the brunt of this increase. These “economic giants in miniature” are the backbone of our national economy. If their operating costs rise due to higher electricity charges, they will be forced to pass the burden onto consumers, triggering inflation and eroding the purchasing power of ordinary Malaysians. This, in turn, threatens the very foundation of our economy.

It is irrefutable that energy reform is energy reform is necessary and inevitable. But it shouldn't come at the expense of ordinary Malaysians. Hence, the government needs to take four key steps to help people and businesses manage these changes:

1.       Explain the rationale and intended use of the tariff increase – The public must be assured that the hike is not arbitrary, but is directed towards upgrading infrastructure and accelerating the green transition. People need to see the value of this change.

2.       Expand electricity subsidies – While the B40 group must continue to be protected, support should also be extended to the M40 group, who are increasingly feeling the pressure of the rising cost of living.

3.       Strengthen energy-saving and carbon reduction education – By cultivating a nationwide culture of energy efficiency, we can help Malaysians adjust their consumption habits and soften the blow of rising tariffs.

4.       Support SME transformation – Temporary subsidies or tax relief should be provided to help businesses through the transitional phase, preventing disruptions that could stall our economic engine.

Switching to cleaner energy is a long journey, and we all have a role to play. But citizens shouldn’t be left to bear the burden alone. Energy transition is a long-term battle that should not be fought on the backs of the people alone. Our government needs to demonstrate greater empathy and forward-thinking leadership. As we pursue long-term national goals, we must not lose sight of the immediate need to protect the welfare and stability of our people.

Dato’ Dr Mah Hang Soon
MCA Deputy President

18 June 2025

-MCA Comm-