SANDAKAN: The Sabah Wastewater Management Association (SWWMA) has urged the Government to ease financing and regulatory pressures on wastewater contractors amid rising operating costs, port delays and growing compliance requirements.
Its President, Taren Sunil Manoharan, said licensed sewerage and wastewater contractors were facing increasing costs for imported pumps, spare parts, pipes and suction trucks, while higher freight and fuel expenses were further adding to their financial burden.
He said the association supported fair wages for workers, noting that average salaries in the industry were already above the minimum wage, but warned that another mandatory increase could put additional pressure on businesses.
“We urge the Government to help employers raise salaries by offering incentives such as better tax credits, so that workers benefit without putting businesses at risk,” he said in a statement.
Taren said port delays and logistical problems were also increasing operating costs and slowing contractors’ response times, while growing regulatory requirements were adding further expenses and administrative work, particularly for smaller operators.
On financing, he said the Government’s efforts to provide better loan rates and easier access to financing for small and medium enterprises (SMEs) had yet to translate into improvements on the ground.
“Many of our members have approached banks only to be turned away over minor issues,” he said.
Taren questioned why banks continued to reject applications despite an 80 per cent government guarantee and 20 per cent insurance coverage.
“When the risk is fully covered, banks should be more open and flexible so that small and medium enterprises can access the funds they need to cope with today’s conditions,” he said.
The association said improving access to financing was particularly important as wastewater contractors required capital to maintain equipment, replace essential machinery and sustain operations amid rising costs.
SWWMA also called for greater efficiency in port and logistics operations to ensure essential equipment and spare parts could reach contractors without unnecessary delays.
Among its other proposals were streamlining licensing and approval processes for licensed operators, easing loan conditions and encouraging banks to approve guaranteed financing for SMEs.
The association also urged authorities and businesses to encourage planned preventive maintenance contracts instead of relying on costly emergency repairs.
Taren said such measures would help wastewater contractors manage costs while ensuring essential sewerage and wastewater services could continue to be delivered efficiently to the community.
“We support fair pay for workers and stronger regulatory standards, but businesses also need a workable environment to remain sustainable and continue providing essential services,” he said.