PETALING JAYA, January 4 — The Malaysian Plastics Manufacturers Association (MPMA) has expressed strong opposition to the recently announced 14% increase in Tenaga Nasional Berhad’s (TNB) base electricity tariff. MPMA argues that the policy will exacerbate the challenges faced by the plastics industry, which is already grappling with rising operational costs, including minimum wage hikes and increased SST-related logistics expenses.
MPMA President CC Cheah emphasized that the electricity cost hike could jeopardize the sustainability of an industry where SMEs make up 90% of players and profit margins remain between 3-6%. The association has called on the government to expedite power sector liberalization to enhance competitiveness and urged TNB to rely on the Imbalance Cost Pass-Through (ICPT) mechanism to manage cost fluctuations instead of increasing base tariffs. MPMA warns that additional financial burdens could weaken the resilience of Malaysia’s economy.
