Freeze or pause electricity tariff hike, SST, says DAP lawmaker in view of the tariffs from US

In view of the 25% reciprocal tariff imposed by the United States, a backbencher has called upon the government to pause the 14.2% electricity tariff hike and the widening of the sales and services tax (SST) that has been imposed since July 1.

The DAP lawmaker pointed out that that even the Overnight Policy Rate (OPR) has been reduced by 25 points from three percent to 2.75 percent.

“For this reason, a freeze or a pause in the 14.2% hike in electricity tariffs for businesses and the RM 10 billion extra taxes from widening the scope of Sales and Services Tax(SST) on 1 July 2025, is necessary to help Malaysians face the 25% in Reciprocal Tariffs(RT) imposed by the United States.”

“Malaysia’s economy could be further strengthened, businesses prosper and people’s lives better if the government can pause or freeze all the hikes in utilities charges and SST taxes.

“During such unfavourable “tariff war” environments, few countries have imposed utility price hikes or increased taxes,” said Bagan MP Lim Guan Eng in a statement today.

He also pointed out that the ground reality and statistics contrasted.

“The economy continues to strengthen the country’s resilience, with inflation dropping to 1.2 % as of May 2025 – the lowest in 51 months – and labour force participation reaching a record 70.8 %.

“The reality on the ground is that many businesses and households continue to complain about rising prices and cost of living with insufficient living wage to meet daily expenses including loan payments.”