YOURSAY | ‘It is not right to increase tariff to fund future projects.’

Water price hike needed to fund future projects - Penang CM

Clever Voter: Penang has the worst record in domestic water consumption rate in the country. Consumption at daily 286 litres per person 2016, compares to United Nations’ recommended target of 165 litres. Singapore in comparison has 148 litres.

Raising price to manage demand is the right thing to do - to prevent wastage. Water as a precious resource should be conserved, and given the unpredictability of climate, it’s better to safe than sorry.

Sadly, consumers take this for granted. Wait till they experience what happened at Cape Town where four million residents would have no access to water due to three years of drought. Any decent government should be responsible over this.

Prudent: @Clever Voter, it can never be justified to punish the efficient consumers of water along with the inefficient consumers (those who waste water) by raising tariffs for all.

The present arrangement in Penang where those who use more than 35,000 litres per month are made to pay 48 sen per 1,000 litres as compared with 32 sen for those who use less, is fair.

If you want to penalise the wasteful consumers, perhaps raise the tariffs for them alone instead of raising for all.

I am a bit worried about Penang Chief Minister Chow Kon Yeow. He wants to use current revenue to fund long-term capital expenditure. This itself is bordering on financial management heresy.

But current revenue, even if he increases it by raising tariffs to his maximum of 20 percent, will not raise RM501 million needed for the projects’ implementation period of 2019 to 2021.

This shows that the CM does not understand the nature of capital expenditure, or capex. Current revenue is for paying off current expenditure.

Someone, maybe former CM Lim Guan Eng, should put him through a crash course in public financial management before he makes the disastrous mistake of using short-term borrowings to finance capex or long-term expenditure.

New Horizon: Discredited MCA politicians reported to be against increase in water rates. Penang water rates are very fair and hardly any supply problems that some other states faced from time-to-time.

Support any fair increase for future projects, and long-term planning as well as discourage wastage by consumers.

Consumers should not oppose for the sake of opposing and be held to ransom by discredited politicians who generally don’t really care for the people when they were in power.

Anonymous_1531693563: It is so painful to see burst pipes, taps running unchecked, water tap turned on in garden for fish pond, etc.

It is high time the authorities raise water prices to hurt people's pockets so that they appreciate the importance of water. Remember the slogan - do not waste water, water is precious!

Donplaypuks: Firstly, does Penang Water Supply Corporation (PBAPP) and/or the state government have reserves from past profits to fund the RM501 million worth of projects?

Secondly, why can't the state government fund capital expenditure via bank borrowings or bonds and repay them from future profits?

Why increase tariffs now, which effectively means the consumer pays for capex as well as future overheads, maintenance and operating costs of PBAPP. Why should Penang citizens be screwed twice?

Better Malaysia!: It is not right to increase tariff to fund future projects. What’s next? Increase road tax to fund future construction of roads? Increase in electricity tariff to build new power plant?

Minister: Water tariff hike expected, but 'won't burden the people'

Anonymous: How would an increase in price not burden the people? The M40 (middle 40 percent) group in Malaysia is broke. Yet, we have to subsidise the B40 (bottom 40 percent) who produce by leaps and bound.

If this is the only solution, why do we need all the economic experts in our payroll? Any Tom Dick and Harry would do.

SVR: Science, Technology, Climate Change and Environment Minister Yeoh Bee Yin is finding ways to reduce electricity cost so it will reduce the burden on our people and this minister wants to increase water rates to burden the people.

The left hand doesn’t know what the right hand is doing. The Harapan government ministers need to be in sync and get on the same page.

Abasir: “Water, Land and Natural Resources Minister Dr Xavier Jayakumar said the increase in the natural resource was necessary to protect the consumer’s interest in getting good water quality and ensuring the industry’s services.”

So, no more mandatory water filters outside houses, low pressure and supply disruptions? If so, fine. If not, get ready to be thrown out.

Bluemountains: If Malaysians can chuck out Umno/BN, what is PKR and Pakatan Harapan?

They must not push their luck too far. Or else they may suddenly become jobless just like former Umno/BN reps. Want to take a gamble?

I am Sabahan: You may have your reasons to raise the rate. I may even agree that it is necessary to raise. But please, don’t ever say that the raise will not burden the rakyat.

Any raise in rate or price will surely burden the rakyat!

Just Sharing: Standard government template since BN’s era. “Tariff will be increased but will not burden the rakyat”. Nothing new.

Current high living cost is already a burden. Defies logic that tariff increase will not burden the already burdened people.

Southpaw: Why hike the tariff when you can even ensure supply and water quality? And please, don't talk tell us the water quality is good and it meets the standard.

May I challenge you to remove all sort of water filters that you have installed in your house?

The above is a selection of comments posted by Malaysiakini subscribers. Only paying subscribers can post comments. Over the past one year, Malaysiakinians have posted over 100,000 comments. Join the Malaysiakini community and help set the news agenda. Subscribe now.

These comments are compiled to reflect the views of Malaysiakini subscribers on matters of public interest. Malaysiakini does not intend to represent these views as fact.