Defer RON95 rationalisation, electricity tariff hike, says Hamzah

KUALA LUMPUR: Putrajaya should postpone its plans to introduce RON95 subsidy rationalisation and the proposal to increase electricity tariffs amid the uncertainty in the global economy, says Datuk Seri Hamzah Zainudin.

The Opposition leader said the government should also defer the purchase of 30 Boeing aircraft by Malaysia Aviation Group (MAG).

“The rationalisation of RON95 subsidies in June this year should be put on hold and if possible, let’s delay the hike in electricity tariffs.

“In an uncertain economic situation, we should also postpone the purchase of 30 Boeing planes. That is our request here,” he said in his speech at the Parliament’s special sitting today to discuss the impact of US tariffs.

The targeted RON95 subsidy was scheduled to be implemented this June while the hike in electricity tariffs is set to begin in July.

Recently, the government also announced the postponement of the expansion of the Sales and Service Tax, initially planned for May 2025 as announced in Budget 2025.

Earlier, in his speech, Hamzah urged Putrajaya to form a bipartisan caucus or task force involving backbenchers and Opposition leaders to discuss the current tariff issue.

“The Opposition can give their views and suggestions during the proposed committee meeting,” he said.

Hamzah also said the task force, if formed, should include representatives from state governments.

“It was done in 2016 to review the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP),” said Hamzah.

The Bersatu deputy president also stressed the importance of maintaining neutrality as the trade war between the United States and China intensifies.

“We should not be seen as siding towards one country,” added Hamzah.

Meanwhile, Hamzah said Malaysia’s trade surplus with the United States has consistently dropped since 2022.

According to him, Malaysia recorded a trade surplus of RM255bil in 2022, RM214bil in 2023 and RM136bil last year.

“This means that it has already reduced.

“We should take this seriously. This is a concern for all of us, let’s not take this issue for granted,” he said.

Hamzah also said that even though the United States is exempting the tariffs on electronics, pharmaceuticals and energy, more changes could be announced in future.

“The tariffs can undermine the entire economic ecosystem in our country, including the agriculture sector,” he said.

Hamzah urged the government to prioritise food security as it is an important aspect in the country.

“Reduce imported agricultural and food products. We should help local farmers.

“The government should prioritise the interests of farmers or fishermen,” he added.

The special sitting saw MPs from both sides debating the tariffs issue.

Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz will give a winding-up speech on the issue at the end of the special sitting this evening.

On April 2, the US President Donald Trump announced a sweeping 10% baseline tariff on all countries and a steeper 24% levy, specifically targeting Malaysian goods.

Trump then authorised a 90-day pause on reciprocal tariffs for all trading partners, except China on April 9.