In a statement, the association said that as commercial building operators passed on these costs to consumers, the impact on prices would be unavoidable.

This, in turn, would drive inflation up and put further pressure on household disposable income and spending power, it said.

The group pointed out that the commercial property sector had been grappling with significant operational challenges post-pandemic, with rising costs creating immense pressure on mall, hotel and office operators.

“In addition to rising energy costs, operators are also burdened by increases in minimum wages and water tariffs. Combined, these factors have led to an overall operating cost increase of up to 140%,” it said.

The association urged Tenaga Nasional Bhd (TNB) and related authorities to consider a more equitable pricing structure instead of burdening the mall industry and, eventually, the consumers.

On Dec 26, TNB said it had proposed a base tariff of 45.62 sen per kWh starting July 1, 2025, up from the present base tariff of 39.95 sen per kWh.

Following that, the Malaysia Retailers Association (MRA) questioned TNB’s plans to increase power tariffs despite reporting net profits exceeding RM1 billion in the last two quarters of this year.

MRA said the national utility company should reinvest portions of its profits to cover its operational and maintenance costs, instead of passing on the costs to the public and consumers.

It also pointed out that the hike would significantly increase operational costs for retailers and impose severe challenges on both businesses and consumers.