| The Association of Water and Energy Research Malaysia would like to thank the federal government for focusing the assistance from the Prihatin Economic Stimulus Package on the M40 and B40 groups’ welfare. Due to the magnitude of Covid-19's impact on the global economy and the slump in the crude oil market, we would like to urge the government to prepare for a worst-case scenario.
The government and ministry in charge must be prudent in the utilisation of KWIE funds so that this fund can continue to play a cost-dampening role in electricity tariffs for 2020 and 2021.Awer has been proposing the establishment of an Energy Price Stabilisation Fund for many years now. Energy resources prices are volatile and can be subject to a cartel as Malaysia also depends on energy resource imports.
It is used only to cushion the sudden impact of fuel price volatility in the international market. The current market price used in Malaysia will be coupled with upper limit costs and lower limit costs. When the limit is breached, the market price is moved to a new level with a new upper limit and lower limit.
The government must also venture into spot LNG market to reduce natural gas prices for electricity and the manufacturing sector. This will be able to boost our economy by reducing the cost of doing business. The government must develop a workable mechanism to adopt this as soon as possible.Awer would also like the government to postpone the implementation of a water tariff adjustment for six treated water licensees .