In Malaysia, almost one-third of treated water is lost in the system and does not bring revenue to the water companies. – BernamapicNational Water Services Industry Restructuring process started in 2004 just few years after centralised sewerage operation in Malaysia was bailed out using taxpayers’ money.
Centralised sewerage operations needed to be ring fenced and merged with state water companies in stages between 2011 and 2015. This move will merge the water treatment, water supply and sewerage services under each state water company to improve operational viability and sustainability. However, this step is still not being implemented and this will further impact water services sector in the long run.
The profit under NWSIR and WSIA model is regulated where additional revenue generated can be capped to plough back into tariff rebalancing or speed up lease rental payment. This mechanism is to ensure improving water services via rapid infrastructure developments while minimises cost impact to tariff.
However, to date, the National Water Services Commission has failed to implement this step. Thus, we have made it clear to SPAN that the Association of Water and Energy Research Malaysia is against all tariff reviews and proposals after 2016.