Water Tariff Review: A Divisive Issue in Malaysia
The Debate Begins
PETALING JAYA: A proposed water tariff review has divided public opinion – while some see it as crucial for better infrastructure, others fear it will worsen the financial burden of struggling households.
A Call for Reasonable and Justified Increases
Engineer Razman Ismail, 48, acknowledged the need for sustainable water management but insists that any increase must be reasonable and justified.
"While I’m living quite comfortably, the increase should still be reasonable, perhaps around 5% to 10%. But, authorities must be transparent about how the funds will be used."
This view aligns with concerns expressed by the Federation of Malaysian Consumers Associations (Fomca), which opposes tariff hikes without clear justification and transparency.
Fomca’s Stance
Fomca CEO Dr Saravanan Thambirajah urged the government to ensure consumer voices are heard, adding that it opposed decision-making that treats public consultation as a mere ‘tick-the-box’ exercise.
"The government must address concerns about affordability, service quality and accountability. We also call for audit reports to be made public to ensure water operators manage funds responsibly."
Noraini’s Concerns
Noraini Abdullah, a 38-year-old laksa stall owner, said now is not the time for a water tariff review.
"Many are struggling with higher expenses for food, electricity and transport. Maybe when the cost of living is more stable, a review would be more acceptable."
Fomca’s Recommendations
Fomca echoed Noraini’s concerns, calling on the government to ensure any tariff increase comes with measurable improvements in service quality and supply reliability.
"An increase in water tariffs will significantly impact lower-income families, many of whom are already struggling with rising costs in essential sectors like electricity, fuel and food."
Prioritizing Affordability and Accessibility
Saravanan also emphasised the importance of prioritising affordability and accessibility, recommending targeted subsidies or rebates to protect low-income households.
"An increase in water tariffs will significantly impact lower-income families, many of whom are already struggling with rising costs in essential sectors like electricity, fuel and food."
Looking Back: 2024’s Water Tariff Hike
In 2024, Malaysia implemented its first nationwide water tariff hike in decades. Effective from February last year, domestic users in Peninsular Malaysia and Labuan saw an increase of 22 sen per cubic metre, raising water bills by an average of RM3 per month.
Service Quality Remains a Concern
Despite the increase, Saravanan said improvements in water supply and service reliability were still lacking.
"Complaints about frequent disruptions, low water pressure, and slow response times remain widespread, raising doubts about whether funds from past hikes were used effectively."
Future of Water Tariffs
High-stakes negotiations involving water operators, the National Water Services Commission (SPAN) and state governments are expected to begin soon as they work to finalise new tariffs before the July 1 deadline.
A New Era for Data Centre Operators
In a major shift, the Energy Transition and Water Transformation Ministry was reported to have approved a specialised water tariff for data centres, setting the rate at RM5.50 per cubic metre. This marks a pivotal change, separating data centre operators from traditional industrial users – a move that could reshape the cost structures in the industry.
Conclusion
The proposed water tariff review has sparked a heated debate, with some advocating for sustainable water management and others warning of the negative impact on struggling households. As the government finalises new tariffs, it is crucial that the voices of consumers are heard and that transparency and accountability are prioritised.
Frequently Asked Questions
Q: What is the proposed water tariff review?
A: The proposed water tariff review aims to increase water rates to ensure sustainable water management and infrastructure development.
Q: What are the concerns about the proposed tariff review?
A: Some consumers are concerned that the increase will worsen the financial burden of struggling households, while others advocate for transparent and responsible water management.
Q: What are the recommendations for the proposed tariff review?
A: Fomca recommends prioritising affordability and accessibility, with targeted subsidies or rebates to protect low-income households, and ensuring measurable improvements in service quality and supply reliability.
Q: What is the current state of water supply and service reliability?
A: Despite the 2024 water tariff hike, concerns about frequent disruptions, low water pressure, and slow response times remain widespread, raising doubts about whether funds from past hikes were used effectively.