ANNOUNCEMENT SOON ON POWER TARIFF REDUCTION

KOTA KINABALU (Malaysia), Jan 30 (Bernama) -- The Cabinet is to announce soon the reduction in electricity tariff and gas price for the manufacturing sector, International Trade and Industry Minister Muhyiddin Yassin said Friday.

He said the Cabinet had agreed in principle to lower power rates and gas
price for the sector.

"I expect the Cabinet meeting next week to discuss the matter so that a
decision can be made quickly," he told reporters after attending the Chinese New
Year open house of his deputy VK Liew.

Liew is also president of the Liberal Democratic Party (LDP), a component
party of the ruling Barisan Nasional (BN) coalition.

Federation of Malaysian Manufacturers president Mustafa Mansur said Thursday
manufacturers, feeling the pinch of the economic gloom, were keenly awaiting the
government's power tariff reduction announcement.

Mustafa had said power tariff revision should be given priority during a
global economic crisis to maintain the business costs at affordable level.

Muhyiddin said the request for a downward revision had merit as the oil
price had dwindled.

"Last week, I asked the government to take into account the current sluggish
economic climate in the country caused by the global financial meltdown.

"We don't want the manufacturing sector to be affected. We want to ensure
the cost of doing business is reduced. One of the factors is the electricity
tariff and gas price which are still high.

"Therefore, we want the government to expedite the decision to lower
electricity and gas prices," he added.
-- BERNAMA