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.
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 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.”
On March 10, Deputy Prime Minister Datuk Seri Fadillah Yusof said the government was reviewing water tariffs, with adjustments expected in some states.
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,” she said.
Fomca echoed Noraini’s concerns, calling on the government to ensure any tariff increase comes with measurable improvements in service quality and supply reliability.
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.”
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.
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.”
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.
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.
