Utility rate hike worries Malaysian plastics group

By Gurdip Singh
Correspondent

Published: January 9, 2014 1:49 pm ET
Updated: January 9, 2014 1:52 pm ET

Related to this story

Topics Asia
Companies & Associations

KUALA LUMPUR — The Malaysian Plastics Manufacturers Association (MPMA) has expressed its concern over the 16.85 percent increase in the electricity tariff for the industrial category, which was implemented Jan. 1.

"Given that electricity is the second largest cost component in the manufacture of a plastic product, the drastic increase in electricity cost will cause the plastic products made in Malaysia to be less competitive in the international market and, consequently, exports would be adversely affected," said MPMA President Lim Kok Boon.

"Other export-oriented and energy-intensive manufacturing industries in the country would also be expected to be similarly affected."

In addition, Lim pointed out that the proposed increase in valuation of property and assessment rates by the Kuala Lumpur City Hall and Ipoh City Council is too excessive and unreasonable.

"Some of our members are hit by a 600 percent increase, which is far too drastic," added Lim.

Lim said the plastics manufacturers were already facing a drastic cost increase following the increase in minimum wages, which also went into effect Jan. 1.

"While we understand the government's need to rationalize subsidies and increase the assessment rate, however, a sudden and huge increase would have serious adverse effects on the manufacturers. The recent announcement on the proposed toll increase will be further a burden to our members," Lim said.

He urged the government to look at a gradual increase in the electricity tariff over a reasonable period, and that any rate should not exceed 10 percent.

Lim also recalled MPMA's past call on the government and the electricity board to extend the off-peak rates to all the plastics manufacturing companies as this would assist in mitigating the impact.


Comments

Utility rate hike worries Malaysian plastics group

By Gurdip Singh
Correspondent

Published: January 9, 2014 1:49 pm ET
Updated: January 9, 2014 1:52 pm ET

Post Your Comments


Back to story


More stories

Image

PolyOne launches Geon BIO PVC using soy-based materials

April 24, 2015 11:48 am ET

More than a decade of research is paying off for Battelle Memorial Institute in the form of Geon BIO PVC compounds from PolyOne Corp.    More

Image

DuPont center in India gets LEED Certification

April 23, 2015 1:07 pm ET

DuPont Co.'s Knowledge Center in Hyderabad, India, was awarded LEED certification by the U.S. Green Building Council.    More

Image

PTT, Marubeni considering shale-based petrochemical complex in Ohio

April 22, 2015 2:33 pm ET

An Ohio county near West Virginia could be the site of a major shale-based petrochemical complex that would include plastic resin production.    More

Image

Appliance giant eyes in-house recycling, compounding

April 22, 2015 6:00 am ET

The world's largest residential air conditioner manufacturer is looking into in-house compounding of recycled plastics.    More

Image

Thailand's Royal Group adding thermoforming plant in Indiana

April 17, 2015 11:17 am ET

Royal Interpack North America Inc. is spending $12 million to make recycle-content PET clamshell containers in Anderson, Ind.    More

Market Reports

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Injection Molding Market Analysis & Processor Rankings

Plastics News BUNDLED package contains our in-depth Market Analysis of the Injection Molding segment. You will gain keen insight on current trends and our economic outlook.

As a BONUS this includes PN's updated 2014 database of North American Injection Molders RANKED by sales volume. Sort, merge, mail & prospect by end market, materials processed, region, # of plants and more.

Learn more

Plastics Caps & Closures Market Report

The annual recap of top trends and future outlook for the plastics caps & closures market features interviews with industry thought leaders and Bill Wood’s economic forecast of trends in growing end markets. You will also gain insight on trends in caps design, materials, machinery, molds & tooling and reviews of mergers & acquisitions.

Learn more

Upcoming Plastics News Events

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 15, 2015 - September 17, 2015Plastics Caps & Closures - September 2015

More Events