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malaysia: pay up or get cut off

foe malaysia

In September 2002, the recently corporatized Selangor State Water Department in Malaysia made good its promise to cut the water supply to homes and business premises which had not settled their bills. The company was determined to collect the RM232 million (US$61 million) owed by more than half a million Selangor consumers, which it urgently needed in order to pay back the RM900 million ($237 million) owed to the three water companies that supplied the water.

One housewife whose water was cut off complained that the water bill for her house amounted to RM1,700 ($447) over the last three months. “I have been complaining to the department over and over again that my bills were unusually high. They told me to pay up first and promised to check. Only when disconnecting the supply today did they tell me that there may be a leak in the underground pipe” she related to the press.

Friends of the Earth Malaysia feels that these actions reveal the undisguised disdain for consumers and disavowal of social responsibility that privatization will bring. Indeed, since water privatization in Selangor State in 1994, water tariffs have increased with no end in sight. The last increase in April 2001 saw water tariffs for domestic users increase by 35.7 percent. There is currently a proposal to privatize all water supply departments in Malaysia.

The Malaysian government is taking the wrong approach to solving the country’s water woes. It is investing some RM60 billion ($16 billion) for more dams and pipelines, while nothing is done to preserve the vital catchment areas that are the sources of our water. Twenty-three of the 27 drinking water sources in Selangor are heavily polluted with industrial and animal waste, heavy metal and sewage. The individual consumer is blamed for water wastage - 36 percent of the total in 2000 - although the biggest users are industry, golf courses, hotels and agriculture.

We believe that water is not an economic commodity, and that providing water should not be a commercial service like providing transport, electricity or telephone connections. Friends of the Earth Malaysia is campaigning for effective laws and regulations that will protect consumers and the poor, by guaranteeing equitable rate structures, conservation measures and universal access to water.

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