18 May 2023

Press statement by MCA Deputy Treasurer-General Datuk IR Lawrence Low

Need for Fair Implementation of Electricity Subsidy Policy

In response to the recent proposal by the Prime Minister regarding the removal of electricity subsidies for households with high electricity consumption, MCA Treasurer Deputy: Datuk IR Lawrence Low has addressed concerns and offered suggestions for the implementation of this policy.

Datuk IR Lawrence Low acknowledges the importance of promoting energy conservation among the public and supports the idea of encouraging households to save electricity. However, he emphasizes the need for a careful and comprehensive approach in defining the threshold of "high electricity consumption."

"It is crucial to consider factors such as family size, income level, affordability, and regional climate conditions in order to avoid a one-size-fits-all approach," says Datuk IR Lawrence Low.

Highlighting the potential complexities in determining high electricity consumption, Datuk IR Lawrence Low points out that certain households may have legitimate reasons for higher electricity usage, such as larger homes, medical needs of the elderly, or the use of older appliances. To address these concerns, he recommends that the government conducts a thorough study on household electricity consumption patterns across various income groups, family sizes, and specific regional areas in the country.

"This research will help establish consumption patterns specific to each group, enabling a more effective implementation of the policy."

To promote energy-efficient practices and educate the public, Datuk IR Lawrence Low suggests organising educational activities and offering tax rebates. Through campaigns, people can be informed about proper power-saving methods, energy-efficient techniques, and the benefits of using environmentally friendly appliances.

"Tax incentives can encourage individuals to purchase energy-efficient home appliances and promote the recycling or reduction of high-power-consuming electrical appliances in the market. These efforts will not only reduce household electricity consumption but also ensure that the people's quality of life is not compromised", said Low.

Additionally, Datuk IR Lawrence Low urges the government to continue investing in renewable energy sources and infrastructure. Increasing the availability of domestic renewable energy options will not only reduce reliance on fossil fuels but also provide households with sustainable and affordable electricity alternatives.

He believes that by adopting a comprehensive approach, the government can successfully implement the electricity subsidy policy while safeguarding the well-being and quality of life of the people.

-MCA Online-