PUTRAJAYA: The government is reviewing water tariffs in the country with potential adjustments in some states, said Deputy Prime Minister Datuk Seri Fadillah Yusof.
He said proposals have been submitted, and as previously decided, reviews are conducted every three years. Currently, some states require a review, and we are assessing the situation,” he told reporters at the Ihya’ Ramadhan Programme in the Ministry of Energy Transition and Water Transformation (Petra) today.
Fadillah noted that water tariffs fall under state jurisdiction, so discussions with state governments are necessary.
“These reviews depend on the justifications provided to the ministry, explaining why a review is necessary and how they plan to implement it. Overall, we need to discuss with the state governments and assess the necessity,” he said.
In 2024, Malaysia implemented a nationwide water tariff increase, marking the first adjustment in decades for certain states.
The tariff adjustment, effective Feb 1, 2024, resulted in an increase of 22 sen per cubic metre for domestic users in Peninsular Malaysia and the Federal Territory of Labuan. This translates to an average monthly increase of RM3 in water bills, aimed at helping water companies improve their services. Pahang, for example, raised its tariffs for domestic users for the first time in more than 40 years.
Yesterday’s event at Petra was officiated by Prime Minister Datuk Seri Anwar Ibrahim.
“This marks the prime minister’s first visit. His visit today is primarily to receive a briefing and then engage in discussions to determine key priorities,” Fadillah said.
Regarding energy, he added, the focus was on ensuring supply security while also addressing issues faced by the public and the business sector, particularly SMEs.
“Any tariff adjustments must take into account the well-being of the general public and SMEs. These were the key points discussed and concluded in today’s meeting,” Fadillah said.
The issues discussed relate to the security of the country’s energy and water supply, he added.
“Energy and water play a crucial role, not only in economic growth but also in ensuring the well-being of our people.
“The prime minister emphasised that whatever we implement, we must first ensure that our supply of water and energy is sufficient for the nation.”
The second priority is accessibility – ensuring that water and energy reach all citizens. “No one should be left without access, and the services must be affordable for the people.”
Another key discussion point was identifying ways to accelerate the implementation of critical projects.
“One such project is flood mitigation, which has been repeatedly highlighted by the prime minister.”
Fadillah said the ministry also addressed the challenges in executing these projects, including state-level assessments, which can delay implementation, particularly concerning land matters and other bureaucratic hurdles.
“The prime minister has requested that within the next two weeks, we propose concrete measures to address these issues, especially given the country’s frequent heavy rainfall, which at times is followed by drought. A crucial aspect is how we can store excess rainwater for use during dry periods and for future needs. This was another key request from the Prime Minister during today’s discussion.”
