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New offences and stiffer fines to be introduced under amendments to the Water Services Industry Act 2006

14 March 2025

The Water Services Industry (Amendment) Act 2025 (“the Amendment Act”) will come into operation on 15 March 2025.1
 
The Amendment Act will, among others, introduce new offences and enhance the penalties for existing offences under the Water Services Industry Act 2006 (“Principal Act”). In this regard, it should be noted that the Principal Act applies only to Peninsular Malaysia and the Federal Territory of Labuan.
 
The main amendments introduced under the Amendment Act are set out below.
 
Discharge of prohibited effluent or noxious matter into sewer
 
The Amendment Act amends section 61 of the Principal Act in three respects: 
  1. The offence of discharging prohibited effluents and substance or matters under section 61(1) into any public sewer or public sewage treatment works will be extended to all sewers and sewage treatment works, regardless of whether they are public or private facilities. 

  2. A new section 61(1A) will prohibit any person from  discharging or allowing the discharge into any septic tank any prohibited effluent or any other matter likely to damage or impair the function of the septic tank or cause disturbance to the sewerage services. 

  3. The penalties for contravening sections 61(1) or 61(1A) will be increased from a fine not exceeding RM100,000 to a fine not exceeding RM1 million and from imprisonment for a term not exceeding one year to a term not exceeding ten years. 
Contamination of water
 
The key amendments to section 121 of the Principal Act (which provides for an offence of contaminating any watercourse2 or the water supply system3 with intention or knowledge of likelihood to cause death or endanger the life of any person) are as follows: 
  1. A new section 121(1A) makes it an offence for any person to contaminate or cause to be contaminated any watercourse or the water supply system or any part of such watercourse or water supply system with any substance which causes or would likely cause the temporary cessation or closure of water supply system or disruption of water supply. 

  2. The penalties for contravening sections 121(1) or 121A will be enhanced as follows: 
  • where death has not resulted from the act but the substance that contaminated the watercourse or water supply system or any part of such watercourse or water system is a radioactive or toxic substance, the maximum term of imprisonment will be increased from ten years to fifteen years and the maximum fine of RM500,000 will be amended to a fine of not less than RM500,000 and not more than RM15 million; and 

  • in any other case where death has not resulted from the act, the existing penalty of a fine not exceeding RM100,000 or imprisonment for a term not exceeding one year or to both will be replaced by a fine of not less than RM200,000 and not more than RM10 million or to imprisonment for a term not exceeding ten years or to both. 
  1. A new section 121(2A) provides that a person who is convicted for an offence under section 121(1) or 121(2A) shall be liable to pay the costs incurred by a licensee to restore the water supply system that has been affected due to the contamination. 

  2. In making an order under section 121(2A), the court shall, under the new section 121(2B), take into consideration the effect of the contamination, the costs borne by the licensee, the damage to, or the loss of, the property suffered by the licensee and any other factor which the court deems relevant. 
Wrongful acts
 
A new paragraph (ca) will be added to section 122(1) of the Principal Act to make it an offence for any person to discharge or throw any waste, sewage, effluent, creature, dead or alive, matter or substance, into any manhole.
 
The penalty for an offence under section 122(1) will be increased from a fine not exceeding RM50,000 or to imprisonment for a term not exceeding six months or to both to a fine not exceeding RM1 million or to imprisonment for a term not exceeding ten years or to both.
 
Unlawful connection of water supply
 
The penalty for the offence under section 123(1) of the Principal Act for making any connection to a public mains or service water pipe4 will be increased from a fine not exceeding RM100,000 or to imprisonment for a term not exceeding one year or to both, to a fine not exceeding RM1 million or to imprisonment for a term not exceeding ten years or to both.
 
Comments
 
The amendments to the Principal Act are overdue as many consumers and businesses have had to suffer heavy losses and damages arising from polluting of water sources whereas polluters have only been penalised with small fines. It is hoped that the introduction of new offences, the imposition of liability on polluters to pay the costs incurred by licensees in restoring the water supply system that has been contaminated and the substantial increases in the penalties for existing offences will significantly reduce the incidence of water supply disruption caused by contamination of watercourses and closure of water supply system for clean-up works.
 
 
Article by To’ Puan Janet Looi (Partner) and Tham Zhi Jun (Associate) of the Environmental, Social and Governance Practice of Skrine.
 
 
1 Gazette Notification P.U.(B) 95/2025.
2 The expression “watercourse” includes rivers, streams and creek including any tributary, distributary or artificial deviation thereof, seas, lakes, ground water, dams, reservoirs, ditches, drains and passages, other than pipes, through which water flows for the supply of water to any premises.
3 The expression “water supply system” refers to the whole of a system incorporating public mains, pipes, chambers, treatment plants, pumping stations, service or balancing reservoirs or any combination thereof and all other structures, installations, buildings, equipment and appurtenances used and the lands where the same are located for the storage, abstraction, collection, conveyance, treatment, distribution and supply of water.
4 The expression “service water pipe” refers to so much of any pipe for supplying water from the public mains to any premises which is subject to water pressure from the mains.
 

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.

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