MALAYSIA: Malaysian Prime Minister Datuk Seri Anwar Ibrahim’s recent announcement regarding Tenaga Nasional Berhad (TNB) ‘s electricity tariff increase has reignited discussions on economic justice and wealth redistribution. The move reflects Anwar’s broader policy vision of ensuring that wealthier individuals and corporations contribute their fair share to fund essential public services.
The policy aligns with Anwar’s long-standing commitment to social equity by targeting the affluent and industry players.
Taxing the wealthy to fund public services
Anwar clarified that electricity tariffs need to be raised to generate revenue for vital public services such as education and healthcare. In an article published by MalayMail, he defended his decision, stating, “If we don’t tax the rich, where will the money come from to increase allocations for schools and hospitals?”
His statement highlights a grounding principle of his economic policy: those with greater financial means should contribute more to the nation’s development. By redistributing wealth through targeted taxation, Anwar aims to address economic inequalities and ensure that essential services remain accessible to all citizens.
Projected impact of the tariff increase
A key element of Anwar’s policy is ensuring that price increases do not burden ordinary Malaysians. He reassured the public that the planned electricity tariff adjustment would primarily impact industries and wealthy consumers, saying, “I told business owners yesterday that we will not compromise; we have to raise it, but it will not affect 85% of Malaysians”.
This statement highlights his commitment to protecting low- and middle-income households from economic hardship while asking the wealthy and large corporations to contribute more.
The new tariff, which will take effect in July 2025 under Regulatory Period 4 (RP4), will increase the base tariff from 39.95 sen per kilowatt-hour (kWh) to 45.62 sen/kWh. Since most Malaysians will be unaffected, the policy aligns with Anwar’s broader economic justice agenda.
Balancing economic growth and social equity
Critics, including Parti Pribumi Bersatu’s MP Wan Ahmad Fayhsal Wan Ahmad Kamal, have accused the government of inconsistency in its handling of electricity tariffs. In response, Anwar reaffirmed that the increase is necessary and will be implemented fairly. “We must accept a reasonable tariff increase for industries and the wealthy,” he said to MalayMail.
This reflects Anwar’s broader approach to taxation and subsidies. He has consistently advocated for targeted subsidies, ensuring that essential goods such as RON95 petrol and diesel are only provided to those who genuinely need them rather than to affluent individuals who can afford market rates.
A progressive and equitable Malaysian economy
Prime Minister Anwar Ibrahim’s policies emphasise economic justice by ensuring that Malaysia’s wealth is distributed equitably. His decision to raise electricity tariffs for industries and high-income groups is a strategic step towards achieving this goal.
By ensuring that wealthier individuals and corporations contribute a fair share, Anwar is working towards a more balanced economy where government resources are used to improve the well-being of all citizens. His leadership sets a precedent for a more equitable Malaysia, where economic policies prioritise social welfare over unchecked corporate profits.