MANUFACTURING SECTOR ASKS GOVT TO REDUCE ELECTRICITY, GAS PRICES

KUALA LUMPUR, Nov 26 (Bernama) -- The manufacturing sector hopes that the Malaysian government would find ways to reduce the prices of electricity and gas to help ease the burden of producers.

Minister of International Trade and Industry, Muhyiddin Yassin, said
his ministry has received the request but has not forwarded it to the National
Economic Council for consideration.

"We have not forwarded the request (to the council) because at this stage
there are no indications from Tenaga Nasional Bhd (TNB) or independent power
producers on whether there would be a cut in the prices of electricity and
gas.

"The matter was reviewed after a year and whether it is appropriate to
bring
up the request now, we are not sure," he told reporters after officiating at the
National Manufacturing Conference here Wednesday.

The government raised the gas price to RM14.31 million (US$1=RM3.62)
British thermal unit (mbtu) from RM6.40 mbtu effective June 4.

Gas sold to TNB by Petroliam Nasional Bhd has been subsidised at RM14.31
mbtu compared to the actual price at RM30. Gas makes up 40 percent of energy
generation cost for TNB.

Tenaga Nasional Berhad (TNB) is the largest electricity utility company in
Malaysia.