The association said the industry has made repeated calls for more competitive pricing in view of the severe challenges faced by the sector and its ongoing efforts to decarbonise.
It said the sector was also grappling with substantial losses amounting to billions of ringgit over the past three years.
These losses were driven by an influx of cheap imports, rising raw material costs, stringent environmental regulations, and the impact of the sharp increases in electricity and natural gas tariffs that took effect on Jan 1, 2023, it said in a statement.
Misif said energy costs are the second largest expense after raw materials.
“Higher electricity prices will erode the competitiveness of local producers, further inflating production costs, which will ultimately be passed on to consumers,” it said.
On Dec 26, Tenaga Nasional Bhd said it had proposed a base tariff of 45.62 sen per kilowatt-hour (kWh) for implementation starting July 1, 2025.
The previous base tariff was set at 39.95 sen/kWh between 2022 and 2024.
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