SPAN Monitors Impact of Hormuz Strait Crisis on the Malaysian Water Services Industry

Referring to the current situation of tensions along the trade route in the Strait of Hormuz, PETRA through SPAN is closely monitoring any impact from the situation on the country’s water services industry.

In general, the water services industry depends directly on two aspects involving the international market: first, fuel for water treatment and distribution purposes as well as logistics; and second, spare parts and chemicals used in treatment plants, piping systems and water treatment processes. Based on current monitoring, no significant effects have yet been felt by operators, as the impact of fuel cost increases remains under control as previously announced by the Prime Minister, and likewise, the costs of spare parts and processing materials have not shown any notable increase.

SPAN will continue monitoring through ongoing impact assessments and does not rule out the possibility of direct effects that could complicate the industry if the conflict continues. Any sudden increase in costs will certainly affect the operations of water service operators. If necessary, appropriate measures will be proposed to PETRA to ensure that the impact on consumers is minimised while also maintaining the industry’s ability to continue providing proper services.

At the same time, SPAN also urges water service operators to take appropriate mitigation measures, including ensuring sufficient stock availability of chemicals as well as mechanical and electrical spare parts for at least the next 3 to 6 months.

PETRA, through SPAN, remains proactive in assessing any potential and actual risks—whether apparent or not—to the water services industry and will take the necessary steps to ensure service continuity.