RP4 Implementation in Malaysia: Positive Outlook for TNB's Regulated Business Segment

Kuala Lumpur, Malaysia – May 28, 2025 – Positive sentiment continues to surround the implementation of the Regulatory Period 4 (RP4) in Malaysia, according to Public Investment Bank Berhad. The firm's research indicates that RP4 is poised to significantly strengthen Tenaga Nasional Berhad's (TNB) regulated business segment. A key factor driving this positive outlook is the introduction of a new base tariff of 45.62 sen per kilowatt-hour (kWh), effective July 1, 2025. This increase, while impacting consumers, is expected to bolster TNB's financial position and support its infrastructure investments. "The implementation of RP4, coupled with the new base tariff, is expected to provide a significant boost to TNB's financial performance," said an analyst from Public Investment Bank Berhad. The research also highlights that the industry's funding will be used to offset the imbalance cost pass-through (ICPT) and cover capital expenditure. The video concludes with a positive outlook on TNB's future, given the expected growth in demand, especially from data centers.