Consider streamlining, federalising water management - FMM

President Tan Sri Dr Lim Wee Chai said domestic water tariffs, which varied from state to state, should reflect the true cost of water to reduce wastage and encourage conservation.

"Tariffs should also be sufficient to raise money for necessary capital expenditure such as addressing non-revenue water (NRW) losses," he said in a statement today.

Lim said NRW loss in Malaysia averaged at 40 per cent due to longstanding issue such as leakages, burst pipes and theft.

He said other supply-related factors such as arresting pollution of rivers, preventing further deforestation of catchment areas and improving maintenance of water plants required immediate and stern action.

"The government must also consider incentives to support the industry's investment in cleaner technologies, water treatment facilities, water saving devices, rainwater harvesting and the extraction of underground resources," he said.

He pointed out that water rationing and unscheduled interruptions in the last few years had adversely affected manufacturing production each time, resulting in loss of millions of ringgits.

Investor confidence has also been affected, he added.