Strategies to Enhance Water Demand Management in Malaysia
Table 4.7: Water Supply Consumption State
Consumption Per Capita Per Day (l/c/d) – 2013
Johor
223
Kedah
225
Kelantan
140
Labuan
167
Melaka
237
N.Sembilan
227
Pulau Pinang
296
Pahang
189
Perak
234
Perlis
242
Sabah
109
Sarawak
168
Selangor
235
Terengganu
211
MALAYSIA
210 Source: MWIG 2012
sustainable level in the coming years. This is further discussed in R&D— Priority Areas for Research, in Chapter 5. During the National Colloquium on WDM (2009) and at the six Strategic Consultations (SC) (2012– 2014) organised by the ASM, it was generally agreed that the present pricing structure of treated water is low and this constraints any effort for improved WDM. This also stifles any scientific and technological advancement as well as discourages innovations towards water management for sustainable developments. Low water tariffs also limit the amount of resources operators can direct to technological innovation and R&D. To ensure sufficient supply for the future generation, water services needs to be restructured to ensure the provision of affordable services on an equitable basis. Right pricing of water is an integral
part of the water services reform initiatives. SPAN has embarked on establishing a tariff setting mechanism, for Peninsular Malaysia and FT Labuan, that is robust, fair and transparent. Furthermore, information on costs and performance levels are to disclose to consumers and users of water who will know what they are paying for and what they are getting in return. In some way, therefore, relevant stakeholders will have a say in tariff increases which are not seen to be costly using a mechanism to capture fair and qualifying expenditure which commensurate with the cost of providing it and the level of service being provided benefitting individuals and society. It is understood that Sabah has implemented a new tariff based on a ‘rate structure’ designed to progressively cover all costs and charges of managing water supply system. Meanwhile, water rates in Pulau Pinang will increase from 1 April 2015 in a move to reduce consumption and avoid rationing according to Penang Water Supply Corporation Sdn Bhd. Furthermore, it is worth noting that water conservation surcharge for water consumption exceeding 35 m3 a month at residential premises is imposed at 48 cents per m3. This goes a long way towards meeting an objective of WDM in water conservation or saving. Consumption per capita promoted by World Health Organisation (WHO) is 165 l/c/d, which should be a long-term target for Malaysia. For short-term measure, SPAN has targeted 180 l/c/d by 2020. Should this be achieved or even surpassed, the volume of water saved in 2020 would be in the order of 2337 mld for Peninsular Malaysia and 267 mld for Sarawak and 208 mld for Sabah (Table 4.8).
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