KUALA LUMPUR: According to Nik Nazmi Nik Ahmad, Indah Water Konsortium (IWK) is set to no longer require subsidies from the government starting next year. This is due to efforts to optimize the concession for management and operating costs. The Natural Resources, Environment and Climate Change Minister also mentioned that IWK runs non-core businesses such as secular economic programmes, solid bio-recycling, and leasing of sewerage assets to third parties.
For the current year, IWK was allocated RM90 million, but managed to operate effectively using only RM60 million. Nik Nazmi revealed that a Cabinet meeting of the previous administration agreed on tariff adjustments implemented in January 2023, paving the way for IWK to no longer rely on government subsidies from 2024.
He made these remarks while concluding the Budget 2024 debate at the committee level for his ministry in the Dewan Rakyat on Thursday (Nov 9).
Nik Nazmi also announced that his ministry will make the first phase amendment to the Water Services Industry Act 2006 (Act 655), specifically to deal with pollution incidents effectively. The amendments will include an increase in jail time and the rate of fines for actions that risk causing pollution to any waterway or water supply system.
“Fines will increase from RM10,000 to RM10 million, and the prison sentence from one year to 15 years, or both,” he said.
In addition, the amendments to the Environmental Quality Act 1974 (Act 127) to effectively deal with pollution incidents will also continue and are expected to be tabled in the Dewan Rakyat for the first reading on Nov 16.
The Dewan Rakyat sitting will continue on Tuesday (Nov 14). – Bernama
