Singapore Budget 2017: Water prices to increase by 30% over two years
At the Singapore Government’s Budget Statement for Financial Year 2017 in Parliament yesterday, Minister for Finance Heng Swee Keat delivered the news that water tariff will increase for the first time in 17 years.
The increment will see prices hiking up by 30% in the next two years to fund higher costs of water production. Earlier this year, it was reported that there is 'significant risk' that the Linggiu Reservoir, which Singapore draw their water supply from, may dry out this year as the water level hit a historical low. As the irregular water level continues, the country will have to turn towards desalination and Newater production, which will result in higher costs to produce and maintain.
“Water sufficiency is a matter of national survival,” Mr Heng said. “Imported water and local catchment water currently meet more than half of our water demand, but both sources depend heavily on weather conditions.”
Water price in Singapore has remain the same for more than a decade and is currently underpriced. The first hike will begin from July 1 this year with the following happening from July 1 next year.