Power tariff hike may spell doom for many enterprises, say business groups

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Indonesia Berita Berita

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GEORGE TOWN: A group of 11 business associations has warned that the sudden and huge electricity tariff hike could be the end of many struggling outfits.

"At this critical juncture where all businesses, big and small, are struggling in survival and revival mode, the hike could be the death knell of many enterprises," they said in a joint statement on Tuesday .

"Furthermore, it came into effect on Feb 1 with a hike of 15% with the government warning not to pass on the hike to consumers," they said in the statement. The expected hike in cost of goods and services resulting from the tariff increase will further cut their purchasing power, resulting in dampened trade volumes and turnover, they said.

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