TNB- The Monopoly Market in Malaysia

          In economics, monopoly is a firm that is the only producer of goods that has no good replacement is called a monopolist. As practiced, because of legal barriers, true monopolies are hard to find in the U.S nowadays. There are 5 features of monopoly and those 5 features are price discrimination, close entry, price maker, close substance does not exist in monopoly and last but not least single sellers but many buyers.

          As I have analyzed about monopoly, this is an example of a case study about the TNB (Tenaga National Berhad). A publicly listed company, TNB has a monopoly over the communication and distribution of electricity in the Peninsular of Malaysia. TNB is responsible and takes charge on electricity generations, communication and distribution and last but not least retail supply in the Peninsular of Malaysia. TNB was configured in the year 1990, following the corporation of The National Electricity Board in the line with the help of the Government’s privatization policy. By the year 1996, TNB had to go through actual internal restricting with the evolution of many subsidiary firms. Shortly, TNB productions Sdn. Bhd. is charged with the function of the production of a firm and the communication and distribution section get hold of by TNB Communication Sdn. Bhd. and also, TNB Distribution Sdn. Bhd. personally.

         Nevertheless, regardless of Malaysia’s economic downturn, projections be a sign of that Malaysia’s demand for electricity is expected to proceed to grow. For instance, top demand for electricity is expected to grow from 8,471 MW in the year 1998 to 14,095 MW in the year 2007. It is supposedly that the country’s energy reserve margin will fall under the psychological barrier of 30% by 2001.

 
By, Nik Nuralia Binti Nik Fauzi
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