Consumers may face price hikes


PETALING JAYA: Consumers in the Klang Valley and Putrajaya may face higher costs for goods and services following the water rate hike next month.

Malaysian Muslim Restaurant Owners Association president Datuk Jawahar Ali Taib Khan said although the hike is “clear and fair”, it would lead to higher operational costs for some businesses.

He said small and medium enterprises (SMEs) are expecting to see their monthly water bills increase by between RM5,000 and RM9,000.

“Those in the restaurant, laundry and manufacturing sectors will definitely be affected.

“And some industries may pass on costs to consumers, resulting in price hikes of between 3% and 7%,” he said yesterday.

On Friday, Selangor Mentri Besar Datuk Seri Amirudin Shari announced a two-tier water tariff structure for domestic users, along with separate rates for non-domestic users, including data centres.

It was estimated that businesses, commercial entities and non-domestic buildings would see an increase of RM0.57 for each cubic metre of water.

Households in Selangor, Kuala Lumpur and Putrajaya will see an increase of between RM0.30 and RM0.88 per cubic metre of water depending on the volume of usage.

Free water worth RM13 per month will continue to be provided to 337,851 accounts under the Darul Ehsan Water Scheme.

Federation of Malaysian Consumers Associations (Fomca) secretary-general Dr Saravanan Thambirajah acknowledged the need for water tariff increases but noted that it could add further pressure on the cost of living.

He called on the relevant enforcement authorities to monitor businesses to prevent them from using the water tariff hike as an excuse to disproportionately increase prices.

On the higher water rates for data centres, Saravanan said Fomca supported the move.

“This sends a strong signal for data centres to invest in more efficient cooling systems and water recycling technologies.

“It ensures that the costs of such heavy usage are not indirectly borne by ordinary consumers,” he said.

Under the new tariff rates, data centres will be charged RM5.31 per cubic metre of usage.

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