Melaka to bring up increase in electricity, gas tariffs to federal govt

The Melaka state government will bring up the issue of increasing electricity and gas tariffs to the federal government to help the Recron (Malaysia) Sdn Bhd factory in Tanjung Kling here.

Chief Minister Datuk Seri Idris Haron said this would hopefully help the company which produces raw materials for making clothes continue to be competitive and cost-effective.

He said the company was a producer of raw material for high-end clothes which are exported to more than 65 countries including for brands like Zara as well as Marks and Spencer, and the state government was very proud that Melaka was an important destination for the industry.

"I understand that the management faces some pressure from the increase in electricity and gas tariffs which will result in the company not being able to produce the raw material at the right price and quality.

"The increase in electricity and gas tariffs are not within the state government's control but we will bring up this issue at the federal government level to help them stay on in Melaka," he told reporters after a visit to the factory here Monday.

Also present were the Melaka State Company Affairs, Human Resource and Non-Governmental Organisations Exco Datuk M.S. Mahadevan and Director of Recron (Malaysia) Sdn Bhd, R. Rakesh Gaur.

Idris said his visit to the factory was in view of the fact that it contributed to one third of the world's clothes market.

Last year, Melaka received investments approved by the Malaysian Investment Development Authority amounting to RM1.35 billion with RM675.5 million being foreign investment, while the rest was domestic.

This year, the manufacturing sector is expected to generate about RM13 billion of the state Gross Domestic Product.

- BERNAMA