A/HRC/42/47/Add.8 providers. This model of PAAB is operational in Peninsular Malaysia and the federal government supports the two states in East Malaysia for urban water and sewerage interventions through loans, often in the form of soft loans. From interactions with interlocutors in the two states, the Special Rapporteur observed that the budget allocation from the federal government is not sufficient, particularly considering the high cost involved to provide water and sanitation services to the population sparsely located in remote rural areas, which cover the majority of the territory in those states. Comment from the Government of Malaysia:  To add the term water before asset management. Regulation 7. Paragraph 20 7. Another outcome of the reform was the establishment of the water and sanitation regulator. All water and sewerage service provisions in the Peninsular Malaysia are licensed and regulated by the National Water Services Commission (SPAN) under the Water Services Industry Act 2006 National Water Services Commission Act 2006. The Special Rapporteur finds the regulatory strategy currently in place at the federal level adequate. SPAN requests the providers to develop a three-year planning and provides institutional support attached to the achievement of an agreed performance. He recommends SPAN to carry out its regulatory functions in a manner immune to pressure from any illegitimate interest and that the main objectives of regulation are aligned with the framework of the human rights to water and sanitation (A/HRC/36/45). Comment from the Government of Malaysia:  The National Water Services Commission Act 2006 governs issues related to the role of SPAN while regulation and licensing falls under WSIA 2006. 8. Paragraph 21 8. SPAN does not have a role in East Malaysia and therefore the national regulatory strategy does not apply in those states. In Sarawak, the State Water Authority plays the regulatory role. It has general control and supervision of all water supply authorities and the management of all water resources and water catchment areas in Sarawak. The state of Sabah does not have an independent regulator and the water department in Sandakan performs the role of a regulator. The Special Rapporteur encourages the Government, in a dialogue with state governments, to harmonise water and sanitation service regulation in the country, through bodies that are independent of service providers. Comment from the Government of Malaysia:  Malaysia proposes to include new formulation to reflect the role of State Water Authority in Sarawak as follows: In Sarawak, the State Water Authority plays the regulatory role. It has general control and supervision of all water supply authorities and the management of all water resources and water catchment areas in Sarawak. Orang Asli Indigenous Peoples 9. Paragraph 26 9. Peninsular Malaysia is home to 215,000 Orang Asli indigenous peoples, where they are the minority. The Special Rapporteur visited seven villages in the Gua Musang district of the state of Kelantan where Temiar-Orang Asli peoples live. He was able to see how 4