Water Services Industry Act 2006 and Environmental Quality Act 1974 to be amended
23 February 2023
The Minister of Natural Resources, Environment and Climate Change of Malaysia announced on 17 February 2023
1 that it proposes to amend the Water Services Industry Act 2006 (‘
WSIA’) and the Environment Quality Act 1974 (‘
EQA’).
- The WSIA
It is proposed that the current maximum penalties under the WSIA for water pollution of a fine not exceeding RM100,000 or a term of imprisonment not exceeding 1 year or both, will be increased to a maximum fine not exceeding RM10 million or a term of imprisonment not exceeding 15 years or both.2
It is further proposed that the WSIA will be amended to introduce provisions to enable consumers to claim damage costs against polluters whose actions risk or cause the closure or disruption of the water supply system.
The proposed amendments to the WSIA are expected to be tabled in the June 2023 meeting of the Malaysian Parliament.
- The EQA
The Minister has announced that the EQA will be amended in two phases:
Phase 1 – It is proposed that the compounds payable for offences under the EQA will be increased. No further details have been announced on the proposed amendments. The proposed amendments under this phase are to be tabled in the fourth quarter of 2023.
Phase 2 – The EQA will be strengthened as a whole, after conducting engagement sessions with stakeholders, such as government agencies, non-government organisations and industry players (including those involved in development projects). No time frame has been specified for the proposed amendments under Phase 2.
Comments
Businesses which are being impacted by frequent water cuts due to water pollution incidents will welcome the introduction of the proposed provisions allowing civil claims for damages against polluters and the increase in fines. The current penalties do not appear to have sufficient deterrent effect as these polluting events continue to disrupt lives and pose serious health and safety issues. It is hoped that the Ministry will also include provisions where the burden of proof is shifted to the polluters to improve the chances of successfully curtailing these water pollution incidents which have severe consequences for businesses and communities.
Alert by To’ Puan Janet Looi, Partner and Head of the Environment Practice of Skrine.
1 RM10 mil fine, 15-year prison proposed for water polluters,
The Star, 17 February 2023.
2 It should be noted that the penalties prescribed under section 121 of the WSIA for the offence of contamination of any water course or water supply system with any substance with the intention to cause death, or with the knowledge that it is likely to cause death or which would likely endanger the life of any person, may in the various circumstances set out in section 121, include the death penalty, imprisonment for life or for a term not exceeding 10 or 20 years, a fine not exceeding RM500,000 and whipping.
This alert contains general information only. It does not constitute legal advice nor an expression of legal opinion and should not be relied upon as such. For further information, kindly contact skrine@skrine.com.