Malaysia postpones electricity tariff review

KUALA LUMPUR, July 9 (Reuters) - Malaysia has postponed a review of electricity tariffs scheduled for this month, but warned that a rate hike may be unavoidable when a decision is made, The Star newspaper reported, citing Energy, Green Technology and Water Minister Peter Chin as saying.

"Eventually we may have to go down that road, we have no choice," said Chin.

"The principle of it is we are moving towards market rates," he said, referring to natural gas prices.

Much of the electricity generated in Malaysia uses natural gas subsidised by the government.

National power company Tenaga Nasional (TENA.KL) submitted a proposal for a review to the government at the end of April.

Chin said higher tariffs would be in line with the government's plan to reduce its subsidies to the power sector.

(Reporting by Julie Goh; Editing by David Chance)