The Cabinet meeting on June 22 also agreed to adjust the water supply tariffs for non-domestic categories and special categories in Peninsular Malaysia and Labuan, effective Aug 1, involving an average increase of 25 sen per cubic metre.

It follows the Cabinet’s agreement with the use of the tariff setting mechanism (TSM) to reorganise the management of the country’s water supply.

“This increase is actually still low and cannot cover the actual cost of providing water supply services of RM1.68 per cubic metre,” the ministry said in a statement.

It also said that there were some states where tariff rates had not been revised for decades, such as Pahang (39 years) and Perlis (26 years).

The mechanism, developed by the national water services commission (SPAN) in 2016, is a systematic, fair and transparent water tariff mechanism and it is aimed at guiding the national water service industry to achieve long-term sustainability.

“The development, planning and implementation of the TSM are conducted in an inclusive manner with the full involvement of all stakeholders,” the ministry said.

It said that in line with the government’s concern for the economic situation of the people, state water supply operators had been advised to continue with existing initiatives.

This includes providing assistance to domestic users in a targeted manner, such as giving rebates to the B40 group.