Powering down to keep the lights on

 

Sigh of relief: Habsah showing her electricity bill at her house in Gertak Sanggul. — LIM BENG TATT/The Star

Many using less electricity as new tariffs loom

PETALING JAYA: Many consumers are taking steps to manage their electricity bills with the implementation of the new tariff structure by the government.

For example, many homeowners are considering having solar photo­voltaic (PV) systems installed on their roofs, while others are looking at the “Time of Use” scheme, which offers lower rates during off-peak hours, now defined as starting from 10pm to 2pm on weekdays, and the entire day on weekends.

Under the new tariff announced by the Energy Commission, domes­tic consumers using less than 1,000kWh (kilowatt-hours) per month will also continue to enjoy subsidies, effective yesterday.

ALSO READ: Brace for price hikes across the board, consumers told

In Johor Baru, sales operations executive Ereena Karen Lim Abdullah, 47, and her husband are thinking about rooftop PV.

“My husband and I are thinking of installing solar panels, but we are unsure whether it is possible to do so at our apartment,” she said, adding that she would raise the matter with the building management soon.

“I used to pay around RM100 for electricity monthly but it had crept up to RM150 even though it is just me and my husband living in our apartment without much changes to our routine.”

ALSO READ: ‘We may have no choice but to hike prices’

Events planning manager Evelyn Lee, 34, said she was hoping to apply for the newly expanded Time of Use (ToU) tariff as soon as possible since it matches her lifestyle.

“My husband and I are seldom at home during the day, so it’s perfect for us since we are typically home only by 10pm.

“We also like to spend our weekends at home together, just relaxing with our dogs with the air conditioning on, so it makes sense,” said Lee, who lives in Puchong.

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In Seremban, Tong Sim Old Folks Home secretary Jessie Chan said they had already been cutting back usage before the new tariffs.

“The 18 elderly and special needs folks at the centre have been told to cut down (on their use), resulting in our monthly bill going down slightly from the over RM400 previously,” she said.

Ramesh Patel, who runs the Vivekananda Home in Rembau, has also told the children under his care to start conserving.

“We went from switching on four lights throughout the night previously, to only one now to further reduce the monthly bill which totals about RM800.”

Retiree N. Manimaran from Perak said he would start consolidating his chores.

“We now do the laundry only once every two days, while clothes are ironed once per week. I’m also cutting down the hours the air conditioner is on from six to four,” said the 67-year-old.

Father-of-four Wan Fahmi Ahmad said getting his household to change their habits would be difficult as they do not know how the new tariff structure would affect their bill.

“We are used to using around 1,500kWh to 2,000kWh, and paying over RM1,000 every month, so convincing them will be hard, especially if our bill increases only by a small amount,” the 51-year old pilot said.

Wan Fahmi, who lives in Putrajaya, added that he would consider the ToU scheme if his bill spiked significantly.

Likewise, Halimatul Abdul Adib, 42, is also adopting a wait-and-see stance.

“I don’t think I will see any significant rise in my bill, though I will wait for a few billing cycles so I can make a better comparison before doing anything.”

In George Town, pensioner Habsah Sulaiman, 70, said the new tariff helped her family.

“I usually use under 300kWh a month or an average of RM150, so it is good that the government is keeping the subsidy,” said Habsah, who lives with her son and his family, including three children.

Technician Kevin Wang, 26, said while the new tariff would support efforts to reduce carbon emissions, affordability remains a key concern.

“I am all for a greener future. But any transition must be gradual, especially for middle-income families like mine.

“The government or utility providers can introduce targeted rebates or energy-efficiency incen­­tives to ease the impact.”

The Light Hotel general manager Raj Kumar said it was too early to predict whether the new tariff would impact room rates.

“We are also actively exploring cost-saving measures such as solar PV,” he said, while stressing the importance of finding a balanced solution that protects both consumers and businesses.

“It is a tough time for everyone, and we do not believe in simply passing every cost to the customer,” Raj said.

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• Brace for price hikes across the board, consumers told
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Trump’s tariff fight with Xi reveals China’s great divide

 

Going strong: China has become less reliant on American consumers since Trump’s first trade war in 2018. — Reuters

HOW does an escalating US-China trade war affect people’s well-being? In China, it depends on who you ask.

Some are energised by the fight. Electric-vehicle makers are in hyperdrive, pushing out luxury new models, self-driving features and battery-charging technologies that allow drivers to recharge almost as fast as filling a petrol tank. Instead of selling cars to Americans, the likes of BYD are taking on Tesla in growth regions such as South-east Asia.

There’s also talk of an “engineer dividend” – credit to President Xi Jinping for his focus on higher education in sciences. The success of DeepSeek’s reasoning model, released in late January, gave rise to a realisation that China is not just a manufacturing powerhouse whose status is being challenged by President Donald Trump’s tariffs. Rather, Beijing may have found a fresh growth model. It can grab market share in software services, which the US excels at. Almost every week, Chinese tech firms have been releasing new artificial intelligence models and applications.

In part because of a stock market rebound, luxury home sales in Shanghai are booming. Property markets in tech hubs such as Hangzhou and Shenzhen are also seeing a revival, a welcoming reprieve after a four-year downturn.

After all, China has become less reliant on American consumers since Trump’s first trade war in 2018. Exports to the US accounted for just 15% of the total in 2024, versus 20% a decade earlier. The economy will shrink by only about 3%, even if the entire trading route to the US gets wiped out.

Beneath that stoic defiance, however, are genuine concerns about how to make a living, especially among blue-collar workers. A decline in exports, until now a rare bright spot in an otherwise anaemic economy, will only create more competition for low-skilled jobs. Already, demand for their labour is diminishing due to factory automation and the end of a decade-long property boom. In 2024, the manufacturing and construction sectors absorbed just over 40% of migrant workers, versus more than half a decade earlier.

Apparel is the third-largest category of US imports from China, after communication devices and electronic equipment. On average, the textile industry hires more than 25 people for every one million yuan (RM589, 846) in gross domestic product generated. About 16 million jobs could be lost thanks to Trump’s tariffs, according to Goldman Sachs Group estimates.

What these displaced might do next matters to the rest of the 425 million-strong blue-collar workforce. In recent years, people have been moving in droves into the gig economy, working as housekeepers, drivers, delivery workers and social media influencers.

Already, some of these sectors are getting crowded. In 2024, the number of ride-hailing drivers jumped by 27% to 38 million, prompting some local governments to warn about overcapacity. No surprise, their average monthly pay fell.

Or consider the 18 million social media live streamers, often young people who want glamour in their work. Most of them aren’t getting rich – they are barely getting by. A recent academic survey shows that 93% make less than 3,000 yuan a month, not even half of what an average delivery person earns.

It’s unlikely Beijing will launch the kind of bazooka stimulus witnessed in the aftermath of the global financial crisis (GFC), the last time China’s exports registered double-digit declines. Back then, more than a third of migrant workers, or over 80 million, were employed in manufacturing. The magnitude of job losses was much larger.

Barring mass street protests, the government’s attitude towards blue-collar labourers has been that since many have few skills, they can be flexible. Manufacturing jobs gone? No problem, they can go into the services sector, or back home to the farm. During the GFC, at least 20 million laid-off migrant workers returned to rural areas. This attitude is unlikely to change just because of Trump.

In fact, this trade war only exacerbates a separation of the elite from the grassroots. For the skilled and well-to-do, US tariffs barely touch their lives, and they are thinking of new money-making opportunities now that Trump is tearing up the existing world order (Gold, anyone?). But millions of others are only getting more anxious. – Bloomberg Opinion/TNS

by Shuli Ren, a Bloomberg Opinion columnist covering Asian markets.

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Overcapacity’ an excuse to target ‘Made-in-China’

 

The overarching US strategy of exaggerating the issue of China’s overcapacity … is aimed at checking China’s industrial development by resorting to a beggar-thy-neighbour policy. — China Daily

RECENTLY, some US and EU officials have said China’s overcapacity distorts global pricing and production patterns. Concur-rently, the Joe Biden administration is considering imposing high tariffs on Chinese steel and aluminum, potentially opening a new front in the ongoing trade conflicts in order to contain Beijing’s “Made in China” drive.

Overcapacity is an economic term that signifies a situation in which there is too much production capacity relative to current demand levels, and hence it should not be overly “pan-securitised”.

Capacity utilisation rates are crucial indicators of whether capacity is adequately leveraged, with a very high rate generally indicating a shortage and a low rate suggesting excess capacity or an irrational capacity structure.

According to the latest data from Trading Economics, the United States has a capacity utilisation rate of 78.3% while China’s stands at 75.9%.

Developed countries including the United States and European nations consider any rate between 79% and 83% an indicator of supply and demand. China’s rate is not significantly lower than the healthy range.

Moreover, China has eliminated outdated steel production capacity to a large extent, having reduced about 300 million tonnes of steel and one billion tonnes of coal capacities, including entirely eliminating 140 million tonnes of substandard steel capacity, over the past decade.

Western pressure on China’s industries and trade has intensified in recent years, with many Western countries restricting the export of semiconductors to China and curbing the import of Chinese-made new energy vehicles, while taking “reshoring” or “near-shoring” measures, further exacerbating global overcapacity and straining the global economic governance system.

This is not the first time the West is using “overcapacity” as a pretext to suppress China’s manufacturing sector. In 2012, the European Commission initiated an anti-dumping investigation into Chinese photovoltaic products, initially planning to impose a 47.6% tariff on them. But in July 2013, China and the European Union “amicably” settled the photovoltaic trade dispute.

Unlike previous occasions, however, this round of scrutiny by the West is focused on China’s advanced manufacturing, particularly in clean energy sectors such as electric vehicles (EVs), photovoltaic panels and lithium batteries – areas in which there is intense Sino-US competition and China enjoys competitive advantages.

In recent years, spurred by the “New Washington Consensus”, the Joe Biden administration has increasingly used administrative and other non-market forces to ensure it has the upper hand in its competition with China in strategic future industries.

Government intervention

Also, the United States has been strengthening the industrial policy through government intervention, which, in essence, is strategic protectionism.

As many as 49 industries including automobile, aerospace, defence, electrical equipment, information and communications technology, and renewable energy in the United States get huge government subsidies.

Also, while strengthening itself, the United States has also increased efforts to weaken others. In recent years, under the guise of combating climate change and promoting low-carbon development, the United States has enacted the Inflation Reduction Act, which imposes discriminatory subsidy policies on products from World Trade Organisation (WTO) member states, specifically EVs from China.

These measures distort fair competition and will disrupt the global supply chains, as well as violate WTO rules of national treatment and most-favoured-nation status.

With the US presidential election still seven months away, the “overcapacity” issue is likely to be exploited by US politicians on the campaign trail, and the United States could intensify its rhetoric on China’s overcapacity, possibly imposing tariffs on Chinese exports including EVs, power batteries and photovoltaic panels.

It could also ramp up anti-subsidy and anti-dumping investigations, and impose green or labour standards barriers to limit Chinese exports. Alternatively, it may continue to forge alliances based on different issues to contain China.

The overarching US strategy of exaggerating the issue of China’s overcapacity is not aimed at striking a balance between global supply and demand; instead, it is aimed at checking China’s industrial development by resorting to a beggar-thy-neighbour policy.

The narrative of overcapacity is crafted by the United States to curb China’s industrial upgrading, safeguard certain Western countries’ vested interests in the global industry and supply chains, promote the reshoring of supply chains to the United States, bolster the US’ manufacturing competitiveness, contain China’s technological progress and prevent it from achieving breakthroughs in advanced manufacturing and strategic industries. — China Daily/ANN

Zhang Monan is deputy director of the Institute of American and European Studies at the China Centre for International Economic Exchanges. The views expressed are the writer’s own.

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