KUALA LUMPUR, Jan 28 (Bernama) -- Indah Water Konsortium Sdn Bhd (IWK) today clarified that a one per cent charge on property value imposed on developers connecting to the public sewerage system is for the Sewerage Capital Contribution (SCC) Fund.
In a statement, IWK said the contribution is regulated and payable to the National Water Services Commission (SPAN) to support the national sewerage infrastructure.
IWK explained that it has been appointed by SPAN as the Certifying Agency for Sewerage Works Approvals under Section 174 of the Water Services Industry Act 2006 (Act 655) for all states in Peninsular Malaysia and the Federal Territory of Labuan, effective Jan 1, 2008.
"Under the Water Services Industry Act (WSIA) 2006, all developments approved for connection to the public sewerage system are required to contribute to the Sewerage Capital Contribution Fund (Kumpulan Wang Sumbangan Modal Pembetungan, KWSMP).
“This contribution funds government-led upgrading, enhancement, and maintenance of the national sewerage infrastructure. It reflects the cost of essential sewerage system improvements required to support sustainable development and environmental protection,” the statement said.
IWK confirmed that the SCC is a statutory contribution towards public infrastructure and is separate from sewerage service charges paid by customers to IWK.
It said the requirement is stipulated under P.U.(A) 72 of 2025, Water Services Industry (Sewerage Capital Contribution Fund) (Amendment) Regulations 2025.
“IWK fully supports the government’s efforts to ensure Malaysia remains a competitive investment hub and will continue to collaborate with authorities, utility providers, and industry stakeholders to address cost concerns while ensuring sustainable and reliable public sewerage infrastructure,” it added.
The clarification was issued in response to a query by Petaling Jaya Member of Parliament Lee Chean Chung about concerns among foreign investors about the charge.
-- BERNAMA
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