Loughborough University
B530708_HARTINI YAHYA_ThesisHY_Final.pdf (7.33 MB)

The role of good regulatory practice (GRP) in the Malaysian water services industry

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posted on 2021-04-15, 10:10 authored by Tini Yahya

Malaysia had faced major obstacles in managing its water services industry. As a result, two main regulations, the Water Services Industry Act 2006 (Act 655) and the National Water Services Commission (SPAN) 2006 (Act 654), were enacted. The main aim of the water services reform was to transform the water industry to ensure that it would continue to supply adequate, clean water for public and industrial use.

In 2013, Malaysia decided to have a regulatory reformation with the introduction of the National Policy on the Development and Implementation of Regulations (NPDIR). Its aim was to improve the government’s regulatory management system in line with promoting Good Regulatory Practice (GRP).

This research is to investigate how Good Regulatory Practice (GRP) helps in transforming the water industry generally and in particular in determining the costs and benefits of water services regulation in Malaysia. In order to answer the research question, a mixed methodology was used. It consists of a qualitative data with 10 in-depth interview sessions with respective agencies, and 46 respondents for surveys from 100 targeted officers of relevant agencies to obtain their views on the implementation of GRP relating to cost and benefits in the water services industry. The quantitative method used consists of secondary data collected from several important documents such as the official statistics, government databases and reports from related agencies such as the Ministry of Water, Land and Natural Resources (KATS), the National Water Services Industry Commission (SPAN), and the Water Asset Management Company (PAAB).

The findings from the qualitative analysis show the related costs – identified as costs to businesses, costs to government and costs to consumers – and their importance. The qualitative analysis also shows that Regulatory Impact Analysis (RIA) is chosen as the method used in assessing cost and benefits in water services.

The quantitative findings present in detail how the benefits of GRP implementation towards better water services regulation have increased quality, efficiency and performance of the industry. In all of these, the research outcomes prove that applying GRP results in positive improvements in the Malaysian water services industry. This can be seen by the following; when the Water Asset Management Company (PAAB) has been successful in raising financing on the capital markets, better operational and financial efficiencies by the water operators, reduction in the level of non-revenue waters (NRW), and the water services businesses has become more stable. Both strands of findings are interpreted in relation to quality and reliability of water services either in or outside the water services regulation framework.



  • Architecture, Building and Civil Engineering


Loughborough University

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© Hartini Yahya

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A thesis submitted in partial fulfilment of the requirements for the award of the degree of Doctor of Philosophy of Loughborough University.


  • en


M. Sohail Khan ; Julie Fisher

Qualification name

  • PhD

Qualification level

  • Doctoral

This submission includes a signed certificate in addition to the thesis file(s)

  • I have submitted a signed certificate