A THINK tank today urged the government to delay hiking water tariffs as it would burden the people.

The Institute for Strategic Analysis and Policy Research (Insap) said in a statement that the new tariffs, due to be imposed on February 1, were untimely given the current economic climate and rising cost of living.

“This additional financial obligation is imposed amid recent cost escalations, such as the 10% tax on low-value goods and the expected surge in electricity bills.

“Secondly, non-domestic users have already experienced a water tariff hike in 2022 (an increase of 20 sen per cubic meter), which could lead to potential ripple effects that may indirectly influence consumer prices as businesses recalibrate their expenses.

“Instead, prioritise efficient water management (leak repair and pipe upgrades) using allocated funds (RM1.1 billion, Budget 2024) before water tariff hikes,” said the think tank affiliated with MCA.

Earlier this week, the National Water Service Commission (SPAN) announced an increase of 22 sen per cubic meter of consumption for users in Peninsular Malaysia and Sabah.

SPAN said the hike was necessary to ensure utility firms could continue investing in infrastructure upgrades and maintenance to ensure a reliable supply of safe drinking water.

Insap said Penang’s recent water disruption served as a reminder that the ageing pipe infrastructure was not only causing more frequent cuts for families but also crippling businesses and hindering economic growth.

“It’s time for both federal and state governments to wake up and address this critical issue.”

Insap also said that the government should reevaluate existing laws to address water-related challenges.

This includes a comprehensive review of the Environment Quality Act 1974 (Act 127) so that rigorous measures can be enforced to penalize those who fail to adhere to proper industrial waste disposal practices.

“Efforts should also be made to promote the sharing of water resources and broaden areas of collaboration among states,” it added.