Protest dams water privatization in Malaysia
By Anil Netto
http://atimes.com/atimes/Southeast_Asia/GF29Ae02.htmlPENANG - Malaysian civil society groups have scored a stunning victory, with the government announcing it is scrapping plans to federalize and privatize the management of water. But activists are now worried that privatization could take other forms and that a proposed federal-level water assets holding company would control millions of dollars in infrastructure spending.
The surprise reversal came last week, when Energy, Water and Communications Minister Lim Keng Yaik said the proposal for the federal government to take over management of water from the various state governments had been called off. Lim said that although he had spoken about privatization and federalization of water services at a forum in 2004, the government changed its stance after consultations revealed that total privatization was not suitable for Malaysia. "So we have cut out the word 'privatization'."
The minister said two bills, to be tabled in Parliament in July, were aimed only at setting up a regulatory body, the proposed National Water Services Commission (SPAN) and at regulating the management of water supply. The minister's announcement came on the heels of a demonstration outside Parliament on Tuesday by people who wanted to hand over a memorandum endorsed by 127 groups opposed to water privatization. The action was organized by the Coalition Against Water Privatization, which includes the Malaysian Trades Union Congress (MTUC), the umbrella body for the country's unions.
Some analysts believe the government was taken aback by the broad spectrum of groups that endorsed the memorandum, ranging from rights groups and trade unions to Islamic and Church-based bodies. Since February, the coalition had been urging the government to adopt a public-public partnership, so that water authorities in the various states could exchange experiences and learn about best practices from each other. The grouping has called on the central government to emulate the model of the Penang Water Supply Corporation (PBAPP), widely regarded as world-class in terms of its efficiency, profitability and cheap water tariffs.