PETALING JAYA, July 21 – Industry leaders are urging the government to engage in deeper consultation following the announcement of a revised base electricity tariff, which they warn could raise operational costs and drive investors elsewhere.
The Data Centre Association Malaysia (DCAM) expressed concern over the lack of clarity and potential “unfair” calculations in the new rate of 45.4 sen per kilowatt-hour, effective July 1, up from 39.95 sen.
DCAM president Mahadhir Aziz cautioned that rising tariffs may deter potential data centre investors, especially with strong competition from neighbouring countries like Thailand and Indonesia. He also highlighted possible “double counting” of energy demand, leading to inflated rate justifications.
Mahadhir urged for a postponement of the new rates pending a full review, calling for policy consistency to maintain investor confidence. Echoing these sentiments, the EU-Malaysia Chamber of Commerce and Industry described the new industrial rates as disproportionate and counterintuitive, noting that in most countries.
Commercial sectors benefit from lower rates than households. CEO Karl Godderis stressed the importance of affordable and predictable energy, especially renewable sources, to attract foreign investment and sustain Malaysia’s economic competitiveness.
