KUALA LUMPUR - Small and Medium business owners struggling to keep afloat in the current economic situation have expressed their relief after the government announced its commitment to bearing the subsidy for electricity under the Imbalance Cost Pass-Through (ICPT) mechanism from July 1 until Dec 31, 2023.
The government announced that domestic users with a monthly electricity consumption of 1,500 kilowatt-hours (kWh) and below will not experience an increase in electricity tariff following the adjustments under the ICPT throughout that period.
Cakes and kuih seller in Alor Setar, Kedah, Shahni Farhana Mat Sahir, 37, said the targeted subsidy implementation clearly shows the federal government’s concern over the people’s welfare who are affected by the rising cost of living.
"...this (no increase in electricity tariff) will certainly reduce my burden as a trader, besides, the cost of living is now increasing and the prices of goods are also rising. So, this government’s initiative can help especially those who are fully dependent on doing business (for a living)," she said.
A café owner in Gong Badak, Terengganu, Suzilawati Ngah said if the government could maintain the electricity tariff, it would be "enough for SME traders like me who are struggling to maintain our operations.”
"Utility costs including electricity for the cafe business are high, about 20 to 30 per cent of the operating costs. I don’t know if I can survive if there is an increase in the costs to run the business because the number of customers dwindles by the day," she said.
Zulkifli Harun who sells Muslim health products in Marang applauded the government’s move but wanted the current leadership to come up with more effective methods to prevent future increases in electricity tariffs.
Meanwhile, a trader at the Ipoh night market in Perak, Faiz Yusoff, 31, said the initiative would indirectly reduce the relatively high operating costs that SME entrepreneurs have to bear.
Faiz, who has been selling various chips such as banana chips and anchovy chips since 2017 said despite the reprieve, the operating costs would still increase following the rising prices of raw materials.
"If the operating costs are high, small and medium enterprises that use a lot of electricity can no longer bear the costs and will have to raise the selling price," he said.
A single mother of four who sells cakes and pastries in Melaka, Rosnah Idris, 45, said it was a huge relief for her as the move eases her burden and facilitates the efforts to increase her household income. - BERNAMA