Malaysia has changed its electricity tariff schedule, and allegedly, it should save the average consumer up to 19% on their bills. However, after an announcement in June 2025, the Malaysian government has decided to restructure its tariff schedule, average base rates, and fuel cost adjustment mechanisms, to provide fairer rates to be assessed every month. This allows electricity providers to assess risks in a more timely way, especially given recent geopolitical conflicts that have forced global crude oil prices to fluctuate significantly.
Following this announcement, Turnleaf expects a sharp price adjustment on Malaysia inflation to come into effect in July 2025 with moderate fluctuations over the next 12 months. Though bills are normally paid within the following 30 days of monthly usage, average prices are surveyed across the forecast month. Because the frequency of the tariff schedule has been adjusted from bi-annually to monthly, we expect electricity prices to fluctuate outside of seasonal expectations according to energy, automatic fuel adjustment (AFA), capacity, network and retail components that will now be accounted in the monthly bill. Turnleaf will continue to monitor fluctuations across these components in the context of growing instability in the middle east to better account for potential shocks to electricity prices. For more information on upcoming price shocks and their estimated MoM impact on our inflation estimations, please visit the Turnleaf inflation dashboard for our country-specific policy impact reports.