Water rate adjustment in Penang yet to receive approval from SPAN
In a recent development, ten Malaysian states, including Penang, Perlis, Kedah, Kelantan, Terengganu, Selangor, Negeri Sembilan, Melaka, Johor, and Pahang, have submitted applications to the National Water Services Commission (SPAN) for a review of their water tariff rates. As of July 9, 2025, these applications are under review and have not been finalized [1][4].
SPAN, the regulatory body responsible for overseeing the water sector in Malaysia, has emphasized that it will carefully consider all aspects related to consumer well-being and the operational sustainability of water service providers before making any decisions [1]. The commission is prioritizing the interests of over 27.2 million consumers and the ability of service operators to continue delivering reliable services [4].
In the case of Penang, Chief Minister Chow Kon Yeow has announced the state's intention to request a delay in implementing the proposed water tariff hike. However, any actual increase in water tariffs, even following SPAN’s review, still requires final cabinet approval before it can be implemented [2][5]. The proposed tariff revision for Penang is still pending SPAN’s consideration, and no decision has been made [4].
It is important to note that under federal water regulations, any increase in tariffs requires Cabinet approval and cooperation from the state governments [3].
In other related news, PBAPP, the Perak Water Board, has launched a RM5 billion sukuk program, the first by a state-linked water utility. The funds raised from this program will be used for major infrastructure projects, including the RM2.1 billion Water Contingency Plan 2030 [6]. PBAPP is also considering private financing and leaseback models to manage costs over time [6].
As the review process continues, the public can expect updates from SPAN regarding the status of these applications and any decisions made in the best interest of consumers and service providers.
- The government in Malaysia is currently reviewing water tariff applications from ten states, including Penang, and the final decisions will be made considering the welfare of consumers and the operational sustainability of water service providers.
- The Governor of the Perak Water Board (PBAPP) has initiated a RM5 billion sukuk program, aiming to fund major infrastructure projects and explore private financing and leaseback models for managing costs over time.
- Any proposed increases in water tariffs, even following SPAN's review, still require final cabinet approval and cooperation from the state governments, as per the federal water regulations in Malaysia.
