Serc

Serc

Dialogue session between the Association of Banks in Malaysia (ABM) and Chinese Chambers.

The Association of Banks in Malaysia (ABM) initiated a dialogue session between ABM member banks (Bank of China, ICBC and China Construction Bank), ACCCIM and Federation of Malaysia Chinese Commerce Association (FEMACCA) today to discuss issues relating to operating environment for businesses in Malaysia amid external tariff challenges, and how the banks could provide financing support to local SMEs. ACCCIM was represented by National Council member cum Chairman of Industry and ESG Committee Datuk Wira Lim Chiun Cheong and SERC Executive Director Mr Lee Heng Guie.

National Economic Forum 2025

Malaysia Business & Economic Outlook:

Turning Strategy into Reality: Institutional Delivery, Economic Resilience & Investor Confidence

 

Business & AI Conference Empowering Malaysia's SMEs: Unlocking AI Innovations for Future-Ready Growth

Malaysia Business & Economic Outlook:

SME Challenges and Opportunities

 

  • It is commendable that the electricity market reform is a bold step towards transparency, energy sustainability, cost-reflective while encouraging energy efficiency. The introduction of AFA, simplification of tariff categories, and itemised charges were long-standing proposals from the industry groups to bring Malaysia closer to international norms.
     
  • That said, more public disclosure is a must – publish clear information on how the base tariffs are derived, what assumptions go into AFA calculations, the structure and intended outcomes of the EEI, and the distribution of subsidies across user groups.
     
  • The Energy Commission and relevant ministries should consider to broaden the eligibility of the EEI, especially for productive low-voltage users, and ensure regular updates on the impact and adjustments of AFA.
     
  • As the energy market moves toward liberalisation under MESI 2.0, these reforms must strike a balance between cost sustainability, fairness, and economic competitiveness. Transparent, equitable pricing, backed by clear communication and robust data, is not just a regulatory necessity but a strategic imperative for industrial resilience and sustainable development.