The Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM) wants the government to review the petrol hike and install a gradual approach instead.

acccim survey on sme for 2007 160407 william cheng Speaking at a press conference this afternoon, ACCCIM president William Cheng Heng Jem said that the increase was too drastic and sudden for many manufacturers.

"Many of the exporters are already committed to three-month and six-month contracts. Most of these agreements were signed under the old tariffs," he said.

"This sudden increase in electricity tariffs could cause them to lose a lot of money.

"Instead of a single increase they should have broken it into three stages. That way, the exporters will have enough time to adjust their pricing," he explained.

Don't penalise manufacturing sector

In tandem with the rise in petrol and gas prices, Tenaga Nasional Bhd said this morning that it too has to raise prices.

According to TNB chief executive officer Che Khalid Mohamad Noh, the increase in tariffs was to reflect the government's move to reduce petrol subsidies.

Cheng also said the gas price hike (from RM11.32 to RM32.56 per mmBtu) for the industrial sector was too high.

"The increase of 187 percent or more than US$10 is on the high side. This is will affect many in the export industries.

"We feel that those who use more gas should get a higher discount. This is not households where you want to punish them (especially the higher income) for using more," said Cheng.

"But when the manufacturing sector uses more electricity, they produce more products. Let's not penalise them."

Cheng also suggested that taxes on cars should be reviewed.

"Taxes on import or locally-made cars are one of the highest in the world. If the government wants to increase the price of petrol, they should reduce taxes in the auto industry.

"Road tax should either be abolished or cut by half," said Cheng.

Don't take grouses to the streets

However, the ACCCIM president cautioned the people against taking their grouses to the streets.

"We also ask the Malaysian people not to react too seriously. If they have any suggestions or objections, use the proper channels to convey them to the government," said Cheng.

"Don't riot to attack the government. We also need a peaceful environment to attract local and foreign investors. Although we have a different opinions we can always appeal to the prime minister or his deputy."

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