Chor: Waste companies will be paid RM8 per household

Posted on September 9, 2011. Filed under: Waste |

-the Star-

KUALA LUMPUR: The three solid waste management concessionaires will be paid RM800mil a year to upgrade their services in peninsular Malaysia, said Housing and Local Government Minister Datuk Chor Chee Heung.

He said the Government would pay the concessionaires – SWM Environment, Alam Flora Sdn Bhd and Environment Idaman Sdn Bhd – an average of RM8 per household for each month under a 22-year contract. The rates will be open for review every seven years.

“In order not to burden the public, they just pay the amount they have been paying for assessment fees, of which a certain percentage is for such services. Any extra charge will be borne by the Government.

“We will be bearing RM500mil a year while the rest will be collected from assessment fees,” he said after launching the Waste Manage­­ment Association’s pavilion at the Second International Greentech & Eco Products Exhibi­tion & Conference Malaysia here yesterday.

He said that in the past, the rate would vary between RM2.30 and RM12 but this had been standardised to make it fair to concessionaires.

“In the past, those who did not make money did not care to do the job well,” he said.

Under the Solid Waste Manage­ment and Public Cleansing Act, which came into effect on Sept 1, solid waste management and public cleansing would be privatised and the concessionaires involved subjected to a Key Perfor­mance Indicator system.

Three states have been exempted from the Act – Selangor, Penang and Perak.

Chor said that since the Act came into effect, the concessionaires had carried out their tasks well despite teething problems.

“From Sept 1 to 5, the Solid Waste Manage­ment and Public Cleansing Corporation received 549 complaints but within two days, 450 were settled,” he said, adding that there was also a common hotline at 1-800-88-7472 for the public to call in.

“I urge the three companies to buck up and do the job well so that, at least in the eyes of the Government, it is justified that this privatisation of solid waste is carried out.”

He also said all three companies would provide free international standard rubbish bins to every home within two years.

On Bank Negara’s proposed move to assess the eligibility for housing loans based on net income rather than gross income, he said this would reduce the number of house buyers.

“I propose that instead of basing their eligibility on net income, perhaps we can split this into two or three levels,” he said, adding that those buying property worth less than RM500,000 should be considered by their gross income while those aiming for more expensive homes should only be eligible on their net income.

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