Kedah: Kedah Menteri Besar Datuk Seri Muhammad Sanusi Md Nor stated that the recent water tariff increase, effective from August 1, will not impose a burden on residents of the state.

According to BERNAMA News Agency, the new tariff rate for domestic use, set at 81 sen per 0 to 20 cubic metres, remains lower compared to rates in other states. The adjustment is a strategic move to aid Syarikat Air Darul Aman Sdn Bhd (SADA) in addressing the state’s water-related debts.

“This tariff increase is not just happening in Kedah… all 10 water supply operators requested it and all were granted,” Muhammad Sanusi noted during a session at the Kedah State Legislative Assembly.

This statement was in response to a query from Bau Wong a/l Bau Ek (PH-Sidam) regarding the necessity of the increase when SADA was already earning profits. As SADA’s chairman, Muhammad Sanusi emphasized the need for profit to manage debt obligations tied to water supply.

SADA’s financial records show fluctuating profits and losses, with a notable profit after tax ranging from RM31,000 to RM23.1 million between 2010 and 2018, followed by a RM36 million loss in 2019. Subsequent years saw profits, with RM149,000 in 2020, RM29.5 million in 2021, RM29.4 million in 2022, RM25.2 million in 2023, RM41.5 million in 2024, and a projected RM80 million profit for the current year.

Muhammad Sanusi highlighted that the authority over clean water supply resides with the federal Government through the National Water Services Commission (SPAN), as stipulated by Section 3 of the Water Services Industry Act 2006. He explained that SPAN manages licenses and oversees business plans for operators, with the power to intervene if financial sustainability is compromised.