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There should be a public debate on the model to be adopted by Malaysia for regulation and privatization of water   Statement by Dr Tan Seng Giaw (Kuala Lumpur, Sunday): Yesterday, the Minister Datuk Seri Dr Lim Kheng Yaik spoke to the forum on water organized by the Federation of Malaysian Consumer Associations. It is reasonable that he tells the public what he has done like having discussion over water regulations with the Second Finance Minister Tan Sri Mohamed Nor Yakcop and Minister in the Prime Minister Department Datuk Mustapa Mohamed. He referred to the appointment of consultants and the promulgation of the Water Services Bill and the National Water Services Commission.  “Malaysia’s model for regulation and privatization would be a modification of the British and French models. We are following the British model closely for privatization, albeit modified. The British have totally privatized everything including the capital expenditure, but Malaysia’s capital expenditure is huge and if we do that I am afraid consumers will not be able to pay for it,’ he added.   Granted we can learn something about water privatization from the British and the French or the Danes. The British faced a serious shortage of water in Yorkshire after privatization a few years ago. The minister has not mentioned this. The public should have a chance to debate the model to be adopted by the country.   He pointed out that the Government would not break contracts with privatized companies although it was re-examining existing privatization of the water industry. Three states, Kelantan, Penang and Johore have privatized water. Other states such as Selangor have privatized the treatment of water. like Pucak Niaga. The government-owned Puas Sdn Bhd buys water from Puncak Niaga between 50 sen to RM2.00 per cubic meter. It distributes water to consumers. The water tariff to domestic consumers is subsidized. Puas is planning for privatization. If any company short-changes the Government, how do we correct it?   (1/8/2004) * Dr Tan Seng Giaw, DAP National Vice-Chairman and MP for Kepong