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Statement by Dr Tan Seng Giaw, DAP National Vice-Chairman and MP for Kepong on the people's reaction to the increase in water tariff in the country. 16.2.2001.

Malaysia is just above the equator. Hence, there is heavy rainfall. Theoretically, we should have more than enough water. But then the mangement of water including its privatization causes anxiety.

There is a furore on the proposal to increase water charges first in
Selangor and then other states for up to 100%. This is expected. We hope that every state will not raise water tariff too high.

First, yesterday Works Minister Dato' Seri S. Samy Vellu reiterated that
because of pilferage, leakage, old piping and loss of water sources, revenue from water has been reduced by 40%.

Water Works Department has not increased rate for nearly nine years. If it does so 10 or 20 %, the reaction may not be so intense. Like all price
increases, 100% frightens people. On the other hand, the Government can use various devices to reduce pilferage, stamp leakage, replace dilapidated piping and other factors causing loss of revenue.

Secondly, the Federal Government plans to privatize water supply in the
whole country such as that in Melaka, Negeri Sembilan, Sabah and Selangor being scheduled for completion last year. For example, Puncak Niaga in Selangor advertises itself everywhere.

GUIDELINES

The Government draws up guidelines for privatization including comprehensive management of water resources, filtration plants, reservoirs, distribution of water and water bills. These will help in monitoring and provision of subsidy.

Water is a commodity. It is also used in bigger amount in industry. Any big increase in tariff has a spiraling effects on manufactured goods.

Many waste water. However, it does not mean that Water Works or privatized company should charge so much.

Leakage from water pipes occurs frequently. After reporting to Water Works or privatized company, we find that effective action is not taken. It may take days and many reminders later before the leakage is stopped. Can we improve on this?

Now, we hope that the Government will announce the details of water
privatization programmes in the country including the agreement on the
system of collection of revenue.

Dr Tan Seng Giaw