A/HRC/42/47/Add.8 Legal, Policy and Institutional Framework 1. Paragraph 4 1. The autonomy of the states of Sabah and Sarawak and the differing levels of economic development between Peninsular Malaysia and East Malaysia also influenced the reform of Malaysia’s water and sanitation sector, which commenced in 2006 2004 and finalised in 2016. The reform resulted in amendments to domestic legislation and the reorganisation of the institutional framework of water and sanitation sector at the federal level. The two states in East Malaysia did not take part in the reform and the reform only covered states in Peninsular Malaysia and federal territories. Comment from the Government of Malaysia:  The Malaysian Parliament passed two acts in 2006, which marked the commencement of reform in the water and sanitation sectors in Malaysia. Reform initiatives are still on going. National Law 2. Paragraph 11 2. In the state of Sarawak, three pieces of legislation governs the water and sanitation sector. The Water Ordinance 1994 regulates the conservation, protection, development, and management of water resources of the state and the supply and distribution of water. The Water Supply Regulation 1995 outlines technical and administrative standards related to the provision of water supply services, including tariffs related to abstracting groundwater and consumer tariffs. Finally, the Sewerage System and Services Ordinance, 2005 Sewerage Systems and Services Ordinance, 2005 regulates the sewerage systems and services in urban areas. Comment from the Government of Malaysia:  The accurate terminology is Sewerage Systems and Services Ordinance, 2005. Institutional Framework 3. Paragraph 14 3. As the result of the reform, the federal government is mandated to regulate the water supply and sanitation services with the power over water-based projects and the states retain their power to declare and regulate water catchment areas, water sources, and river basins. Institutional actors at the federal level have been consolidated to ensure provision, regulation, and funding for both water and sanitation. Notably, in 2006, the Ministry of Energy, Water and Communication Water, Land and Natural Resources was established and is responsible for developing integrated water management, from water catchment to water access at households. Several other institutional bodies in the water and sanitation sector of Malaysia were established, which includes: Indah Water Konsourtium (IWK) the federal mechanism for the provision of sanitation; National Water Services Commission (SPAN), the national regulator; and the Water Asset Management Company (PAAB), the custodian of water assets. The states of Sabah and Sarawak decided not to be part of the new institutional architecture and retained their own institutional framework and autonomy over water and sanitation service provisions. Comments from the Government of Malaysia:  The Ministry of Water, Land and Natural Resources was established in 2018 after the 14th General Elections. 2

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