PENANG USER’S PERCEPTION OF DOMESTIC WATER QUALITY, HEALTH RISK CONCERN AND WILLINGNESS TO PAY: A PILOT STUDY

Abstract

The state of Penang has been known to be offering the lowest water tariff rate for its users in Malaysia. The most recent water services reform exercise in Malaysia saw a suggestion made for the abolishment of water subsidies by the federal government and for full cost recovery (FCR) approach to be applied. This means that the operating cost will be transferred to consumers instead. This study reports a descriptive pilot study results that explored Penang user’s responses to various issues pertaining to their perception of water quality, health risk concern and willingness to pay for increased water tariff. The findings show that users were not that happy with water quality only in terms of taste, suspended solids that should not have come out from the tap but sometimes they do, and chlorine content; however, not for its odor or color. As for health risk concern, although majority believe that their tap water adhered to the drinking standard set by World Health Organization (WHO), still many perceived that their tap water is associated with health risk and unsafe for drinking, which saw many opted to buy bottled water for their drinking consumption. As for willingness to pay, majority think that the tariff should not be increased at all, particularly at the current water quality provided to users. Gender and monthly income as part of demographic factor play important roles in enhancing the study’s outcome. The findings provide preliminary insight to how water users may act towards a possible water tariff increase in the state.