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

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

Corbion Puriac considering PLA plant in Thailand, if customers commit

October 31, 2014 11:52 am ET

Biofeedstocks supplier Corbion Puriac will build a polylactic acid (PLA) plant in Thailand if it receives a sales commitment from customers.    More

Image

Messe Düsseldorf supports Plastindia move, but with reservations

October 20, 2014 2:45 pm ET

Germany's Messe Düsseldorf, the largest overseas partner of the Plastindia show, has given its support to the last-minute move of Plastindia to a new ...    More

Image

Petition asks for Plastindia to move back to Delhi, PIF board member resigns

October 20, 2014 2:28 pm ET

A member of Plastindia Foundation's management board has quit the organization to protest the manner in which the group moved its namesake Plastindia ...    More

Market Reports

Pipe, Profile & Tubing Extrusion Market Trends

This report provides in-depth analysis of current trends, statistics and innovations in product design and production impacting the PP&T industry in North America.

Learn more

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

Plastics in Mexico - State of the Industry Report

This report analyzes the $20 million dollar plastics industry in Mexico including sales of machinery & equipment, resins and finished products.

Our analysts provide insight on business trends, foreign investment, top end markets and plastics processing activity. The report also provides important data on exports, production, employment and value of plastics products manufactured.

Learn more

Upcoming Plastics News Events

January 14, 2015 - January 14, 2015Plastics in Automotive

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

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

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

October 27, 2015 - October 29, 2015Plastics Financial Summit - New York - 2015

More Events