FMM PRESS STATEMENT: Allow Sufficient Time for Industry to Adjust to New Tariff Schedule Effective July 2025

Head Office, KL

Kuala Lumpur, December 21, 2024 – The Federation of Malaysian Manufacturers (FMM) welcomes the Government’s decision to maintain the Imbalance Cost Pass Through (ICPT) surcharge for 1H2025 at 16 sen/kWh. The next six months would be crucial as the global market prepares for the policy changes under Trump administration and the geopolitical uncertainties especially in the Middle-East would continue to pose risk on energy price volatility as the conflict prolongs.

FMM notes that the new base tariff under the Regulatory Period (RP) 4 from 2025 to 2027 would be implemented from July 1, 2025. FMM reinforces its view that base tariff review, while addressing the revenue-cost structure mismatch as the country moves towards energy transition and third-party access arrangement, must ensure that the industrial tariff rate remains competitive and attractive in the region. Additionally, industry should be given time to better understand the new tariff schedule that will be introduced. A dialogue with industry stakeholders should be carried out before implementation. The announcement on the new tariff schedule should be at least 3 months before implementation to give sufficient time for industry to make the necessary adjustment in their operations.

FMM has also requested previously for the SMEs under the medium voltage (MV) category to be given due consideration to qualify for a lower surcharge similar to the rate given to the water services sectors at 3.7 sen/kWh. The continued high surcharge environment would not be tenable for SMEs to remain competitive in the long run as they would also be making an adjustment for the implementation of the new minimum wage by February 1, 2025.

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Tan Sri Dato’ Soh Thian Lai

President, Federation of Malaysian Manufacturers

FMM Advocates Transparency, Integrity, Accountability and No Corruption

About FMM

The Federation of Malaysian Manufacturers (FMM) has been the voice of the Malaysian manufacturing sector since 1968. Representing over 12,300 member companies (3,900 direct and 8,400 indirect) from the manufacturing supply chain, FMM is actively engaged with government and its key agencies at Federal, State and local levels. FMM is also well-linked with international organisations, Malaysian businesses and civil society. Apart from benefitting from FMM’s advocacy, FMM members enjoy value-add services, including training, business networking and trade opportunities as well as regular information updates.

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