Improved Water Services and Malaysian Household’s Willingness to Pay: A Descriptive Analysis

Abstract

Water tariff increase has been suggested as part of the water services industry reform agenda in Malaysia. This study explores the issue on Malaysian households’ willingness to pay (WTP) for a promised improved domestic water quality and services. Descriptive analysis on data from 262 household’s paid water users, the study found that majority of Malaysian household’s WTP to be at the less than RM5; these consist of those who live in rural and suburban areas (not urban), those within all income categories (except for those earning between RM6001-RM9000), and those with education level less than Master and above degree. The findings indicate the importance of socio-economic factor to be considered by SPAN and water services providers in any plans to increase water tariff.