PETALING JAYA: The water tariff adjustment which came into force on Feb 1 is a necessary measure to strengthen future management of the resource in the face of climate change, Charles Santiago said.
Calling on consumers to accept the rate hike, the National Water Services Commission (SPAN) chairman said action ought to have been taken to address the matter at least 10 years ago.
Santiago said he had called for the tariffs to be reviewed as far back as in 2018, during Dr Mahathir Mohamad’s second stint as prime minister, and during the administrations of Muhyiddin Yassin and Ismail Sabri Yaakob, all of whom chose to defer its implementation.
It is being done now, he said, due to political will on the part of Prime Minister Anwar Ibrahim to do the right thing for the future wellbeing of the country.
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“Malaysia must invest to overcome issues and problems faced by our water operators,” Santiago told host Wan Agyl Wan Hassan on FMT’s new talk show, Kerusi Panas.
“This is an investment by the people and the country into its future.”
On Jan 17, SPAN announced an average water tariff adjustment of 22 sen per cubic meter for domestic consumers in Peninsular Malaysia and Labuan, which came into effect at the beginning of this month.
However, despite the hike, the revenue generated will not be sufficient to cover the actual cost of water supply, which in 2022 stood at RM1.75 per cubic metre.
Santiago also said there was a need to address issues surrounding the loss of water before it reaches end users, known as non-revenue water.
He proposed that the sum of RM10 billion per year be channelled over a period of three years to address the issue, adding that the costs could be shared between the federal and state governments and the private sector.
Santiago was appointed chairman of SPAN for a period of two years from Nov 1, 2018, but was relieved of the post six months prior to its scheduled expiry on Oct 31, 2020.
He was re-appointed to the position on March 27 last year for a term of two years.
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