Chapter 1 — Individual licence
Requirement for individual licence
(1) Subject to section 5, no person shall—
(a) own a public water supply system or public sewerage system or any part of the systems; or
(b) undertake, provide or make available any water supply services or sewerage services or part of the services by means of operating a public water supply system or public sewerage system,
unless he holds an individual licence granted under this Act.
(2) Notwithstanding subsection (1), a developer of a sewerage system or water supply system who is required under section 47 to hand over such sewerage system or water supply system to a licensee shall not be required to hold an individual licence for the ownership of the sewerage system or water supply system until the sewerage system or water supply system is completed or commissioned, whichever is earlier.
(3) An individual licensee shall not provide any of the licensed activities referred to in subsection (1) except in accordance with the conditions of the individual licence granted to the licensee.
(4) A person who contravenes subsection (1) commits an offence and shall, on conviction, be liable to a fine not exceeding one million ringgit or to imprisonment for a term not exceeding ten years or to both.
Power to exempt from requirement for individual licence
(1) The Minister may, upon the recommendation of the Commission, by order published in the Gazette, exempt a person from the licensing requirements under section 4 subject to such terms and conditions as the Minister thinks fit.
(2) A person who is exempted from the licensing requirements under subsection (1) shall comply with the duties and obligations of an individual licensee as if the person is an individual licensee under this Act unless otherwise specified in the exemption order.
Application for individual licence
(1) Any person may apply to the Minister for an individual licence to be granted to him under section 9 by submitting a written application to the Commission.
(2) An application under this section may be withdrawn at any time before it is granted or refused.
Further information or document
(1) The Commission may, at any time after the receipt of an application for an individual licence under section 6, request the applicant to give to the Commission within the period specified in the request further information or document on the application.
(2) If any additional information or document required under subsection (1) is not provided by the applicant within the period specified in the request or any extension of time granted by the Commission, the application shall be deemed to be withdrawn and shall not be further proceeded with, but without affecting the right of the applicant to make a fresh application.
Recommendation by the Commission
(1) The Commission shall within sixty days from—
(a) the receipt of an application under section 6; or
(b) where the Commission has requested for further information or document under section 7, the provision of the information or document,
submit a written recommendation to the Minister as to whether or not the individual licence should be granted to the applicant.
(2) The written recommendation of the Commission shall specify—
(a) the reasons for its recommendation; and
(b) any special conditions which the applicant should be subject to if the Commission recommends to the Minister to grant the individual licence.
Grant or refusal of individual licence
(1) The Minister may, after considering the application for individual licence under section 6 and the further information or document provided under section 7 and having due regard to the recommendation of the Commission under section 8, grant the individual licence or refuse to grant the individual licence.
(2) If the Minister decides to grant an individual licence under subsection (1), he shall—
(a) require the individual licensee to pay the prescribed fees within the prescribed period;
(b) impose all the standard licence conditions of an individual licence as may be prescribed; and
(c) impose such special conditions as he thinks fit.
(3) The decision of the Minister to grant or not to grant an individual licence shall be communicated to the applicant by the Commission by written notice as soon as practicable.
(4) The written notice by the Commission under subsection (3) shall specify—
(a) in the case where the individual licence is granted, the fact of such grant and the requirements and conditions imposed under subsection (2); and
(b) in the case of a refusal to grant an individual licence, the fact of such refusal and the reason for the refusal.
Compliance with individual licence conditions
(1) An individual licensee shall comply with—
(a) the prescribed standard conditions of the individual licence; and
(b) any special conditions imposed by the Minister on the individual licence.
(2) An individual licensee who fails to comply with any condition of an individual licence under subsection (1) commits an offence and shall, on conviction, be liable to a fine not exceeding five hundred thousand ringgit or to imprisonment for a term not exceeding five years or to both.
Power to impose additional, vary or revoke conditions
(1) The Minister may, on the recommendation of the Commission, at any time—
(a) impose any additional conditions on the individual licence; or
(b) vary or revoke any conditions imposed on the individual licence.
(2) Before the Minister makes a decision under subsection (1), the Commission shall give the individual licensee—
(a) a written notice of the Minister’s intention together with a draft copy of the imposition, variation or revocation; and
(b) an opportunity to make written submissions within a period specified in the written notice which shall not be less than thirty days.
(3) After the expiry of the period specified in the notice, the Minister shall, after considering any written submission made by the individual licensee and having due regard to any recommendation of the Commission, decide whether to impose the additional conditions or to vary or revoke any existing conditions or to take no further action.
(4) The Commission shall give the individual licensee a written notice of the Minister’s decision under subsection (3) as soon as practicable and the decision shall take effect on a date to be specified in the written notice.
Transfer of individual licence
(1) The grant of an individual licence under section 9 shall be personal to the individual licensee and the individual licence shall not be assigned, sub-licensed or transferred to any other person except with the prior written approval of the Minister.
(2) An individual licensee who assigns, sub-licenses or transfers its individual licence to any other person without the prior written approval of the Minister commits an offence and shall, on conviction, be liable to a fine not exceeding three hundred thousand ringgit or to imprisonment for a term not exceeding three years or to both.
Revocation of individual licence
(1) The Minister may, upon the recommendation of the Commission, revoke an individual licence under any of the following circumstances:
(a) the individual licensee has failed to comply with any provisions of this Act or its subsidiary legislation;
(b) the individual licensee has failed to comply with any of the conditions of the individual licence;
(c) the individual licensee had improperly or illegally obtained the individual licence;
(d) the individual licensee has been convicted of an offence under this Act or its subsidiary legislation;
(e) a receiver, receiver and manager, provisional liquidator or like official has been appointed over the whole or substantial part of the individual licensee’s assets and such appointment is not revoked or annulled within a period of sixty days from the date of such appointment; or
(f) there has been any act or default on the part of the individual licensee or there has been a change of circumstances such that the individual licensee would no longer be entitled to be granted an individual licence under this Act.
(2) Before the Minister makes a decision under subsection (1), the Commission shall give the individual licensee—
(a) a written notice of the Minister’s intention to revoke the individual licence; and
(b) an opportunity to make written submissions within a period specified in the written notice which shall not be less than thirty days.
(3) After the expiry of the period specified in the notice, the Minister shall, after considering any written submission made by the individual licensee and having due regard to any recommendation of the Commission, decide whether or not to revoke the individual licence.
(4) The Commission shall give the individual licensee a written notice of the Minister’s decision under subsection (3) as soon as practicable.
(5) The individual licensee shall not be entitled to any form of compensation from the Minister or the Commission if the individual licence is revoked in accordance with subsection (1).
Effective date of revocation of individual licence
The revocation of an individual licence under section 13 shall take effect on—
(a) a date specified by the Minister in the written notice given under subsection 13(4); or
(b) if no date is specified in the written notice given under subsection 13(4), on the expiry of thirty days from the date on which the notice is served on the individual licensee.
Publication of revocation of individual licence
(1) Where the revocation of an individual licence has taken effect, the Commission shall, as soon as practicable, cause the revocation to be published in at least one national language and one English language national daily newspaper for at least three consecutive days.
(2) Any delay or failure to publish the notice of revocation shall not in any manner affect the validity of the revocation.
(3) The Minister and the Commission shall not be liable for any action, loss or damage arising from or occasioned by the publication of the notice referred to in subsection (1).
Surrender of individual licence
(1) An individual licensee may surrender its individual licence by forwarding the licence to the Commission with a written notice of the surrender of the licence.
(2) The surrender of the individual licence shall take effect six months from the date the Commission receives the licence and the written notice under subsection (1) or on such other date as may be specified by the Minister.
(3) The surrender of an individual licence under subsection (1) shall be irrevocable unless the Minister by notice in writing to the individual licensee allows the surrender to be withdrawn before the effective date of the surrender of the individual licence.
Renewal of individual licence
(1) An individual licensee may apply for a renewal of its individual licence not later than one year before the date of expiry of the existing individual licence.
(2) The Minister shall, on the recommendation of the Commission, upon payment of the prescribed fee, renew an existing individual licence except in the following circumstances:
(a) the individual licensee has failed to comply with any provisions of this Act or its subsidiary legislation;
(b) the individual licensee has failed to comply with any of the conditions of the individual licence;
(c) the individual licensee had improperly or illegally obtained the individual licence;
(d) the individual licensee has been convicted of an offence under this Act or its subsidiary legislation;
(e) a receiver, receiver and manager, provisional liquidator or like official has been appointed over the whole or substantial part of the individual licensee’s assets and such appointment is not revoked or annulled within a period of sixty days from the date of such appointment; or
(f) there has been any act or default on the part of the individual licensee or there has been a change of circumstances such that the individual licensee would no longer be entitled to be granted an individual licence under this Act.
(3) The Commission may request the individual licensee to provide any information or document as may be required for the renewal application within a period specified in the request.
(4) Notwithstanding subsection (2), if the information or document requested under subsection (3) is not provided by the individual licensee within the period specified in the request or any extension of time granted by the Commission, the Minister may not renew the individual licence.
(5) If the Minister refuses to renew the individual licence, the Commission shall inform the individual licensee by written notice as soon as practicable of the Minister’s refusal to renew the individual licence.
(6) The individual licensee shall be given an opportunity to make written submissions to the Minister within a period specified in the written notice referred to in subsection (5) which shall not be less than fourteen days.
(7) After the expiry of the period specified in the notice under subsection (6), the Minister shall, after considering any written submissions made by the individual licensee and having due regard to any recommendation of the Commission, decide whether or not to renew the individual licence.
(8) If the Minister decides not to renew the individual licence, the Commission shall notify the individual licensee as soon as practicable of the Minister’s decision and shall publish the decision in at least one national language and one English language national daily newspaper for at least three consecutive days.
(9) Any delay or failure to publish the notice referred to in subsection (8) shall not in any manner affect the validity of the Minister’s decision not to renew the individual licence.
(10) The Minister and the Commission shall not be liable for any action, loss or damage arising from or occasioned by the publication of the notice referred to in subsection (8).
Effect of revocation, surrender or non-renewal of individual licence
(1) If the revocation of an individual licence under section 13 or a surrender of an individual licence under section 16 has taken effect or where the individual licence has not been renewed under section 17, the individual licensee shall immediately cease to provide any facility or service in respect of which the individual licence was granted.
(2) Notwithstanding subsection (1), the Minister may authorize the individual licensee in writing to carry on providing any facility or service for such duration and upon such terms and conditions as the Minister may specify in the authorization for the purpose of winding up the licensee’s affairs.
Register of individual licence
The Commission shall maintain a register, in accordance with section 176, which shall be made available to the public, of—
(a) any individual licence granted by the Minister;
(b) any exemption order to licensing requirements of individual licence granted by the Minister;
(c) any special conditions specified in the individual licence;
(d) any imposition of additional conditions or variation or revocation of conditions;
(e) any written notice by the individual licensee surrendering its individual licence;
(f) any revocation of individual licence;
(g) any non-renewal of individual licence; and
(h) any written approval from the Minister to the assignment, sub-licensing or transfer of an individual licence.
Chapter 2 — Class licence
Requirement for class licence
(1) Subject to section 22, no person shall—
(a) own a private water supply system or private sewerage system or any part of the systems; or
(b) undertake, provide or make available any water supply services or sewerage services or part of the services by means of operating a private water supply system or private sewerage system,
unless he holds a class licence granted under this Act.
(2) Notwithstanding subsection (1), an individual licensee is not required to apply for a class licence for the activities specified in subsection (1) within its water supply distribution area or sewerage services area if the terms of the individual licence authorizes the individual licensee to carry out any such activities.
(3) A class licensee shall not provide any of the licensed activities referred to in subsection (1) except in accordance with the conditions of the class licence granted to the class licensee.
(4) A person who contravenes subsection (1) commits an offence and shall, on conviction, be liable to a fine not exceeding two hundred thousand ringgit or to imprisonment for a term not exceeding two years or to both.
Restrictions imposed on class licensee
(1) A class licensee who owns a private water supply system or any part of the system or supplies water for its own private use, or its, tenants’, occupiers’, guests’ or invitees’ private use, within its premises shall—
(a) be prohibited from leasing, licensing or permitting any other person from using its private water supply system or a part of the system for the purposes of supplying water to the public; or
(b) not engage in any trade or business of supplying water to the public,
unless it is licensed to do so under this Act.
(2) A class licensee who owns a private sewerage system or any part of the system or provides sewerage services for the sole purpose of collecting, conveying, treating and disposing sewage by means of a private sewerage system shall—
(a) be prohibited from leasing, licensing or permitting any other person from using its private sewerage system or a part of the system for the purposes of providing sewerage services to the public; or
(b) not engage in any trade or business of providing sewerage services to the public,
unless it is licensed to do so under this Act.
(3) A class licensee who contravenes subsection (1) or (2) commits an offence and shall, on conviction, be liable to a fine not exceeding one hundred thousand ringgit or to imprisonment for a term not exceeding one year or to both.
Power to exempt from requirement for class licence
(1) The Minister may, upon the recommendation of the Commission, by order published in the Gazette, exempt a person from the licensing requirements under section 20 subject to such terms and conditions as the Minister thinks fit.
(2) A person who is exempted from the licensing requirements under subsection (1) shall comply with the duties and obligations of a licensee as if the person is a class licensee under this Act unless otherwise specified in the exemption order.
Exemption from duties or obligations
(1) A class licensee who —
(a) owns a private water supply system or a private sewerage system or any part of the systems or supplies water for its own private use or its tenants, occupiers, guests or invitees’ private use within its premises; or
(b) owns a private sewerage system or any part of the system or provides sewerage services for the sole purpose of collecting, conveying, treating and disposing sewage by means of a private sewerage system,
shall be exempted from the duties or obligations under sections 30, 31, 32, 33, 44, 47 and 48.
(2) A class licensee referred to in subsection (1) shall comply with all other requirements under this Act and its subsidiary legislation unless otherwise expressly exempted.
Approval for class licence
(1) The Minister may, upon the recommendation of the Commission, approve a class licence in respect of any matter requiring a class licence under this Act.
(2) The Minister shall give a copy of all class licences approved under subsection (1) to the Commission as soon as practicable and the Commission shall register the class licences.
Application for class licence and registration
(1) A person who intends to operate under a class licence shall register with the Commission by submitting a registration notice and the prescribed fees to the Commission.
(2) A class licence registered by the Commission shall—
(a) include all class licence conditions as may be prescribed; and
(b) be subject to such other conditions as may be imposed by the Minister from time to time.
(3) No person shall operate under any class licence unless the person is duly registered under this section by the Commission.
(4) The registration of a class licence is personal to the class licensee.
Compliance with conditions of class licence
(1) A class licensee shall comply with—
(a) the prescribed conditions of the class licence; and
(b) such other conditions as may be imposed by the Minister from time to time.
(2) A class licensee who fails to comply with any of the conditions of the class licence referred to in subsection (1) commits an offence and shall, on conviction, be liable to a fine not exceeding two hundred thousand ringgit or to imprisonment for a term not exceeding two years or to both.
De-registration of class licensee
(1) The Commission may de-register a class licensee in any of the following circumstances:
(a) the class licensee has failed to comply with any provisions of this Act or its subsidiary legislation;
(b) the class licensee has failed to comply with any of the conditions of the class licence;
(c) the class licensee had improperly or illegally obtained the class licence;
(d) a receiver, receiver and manager, provisional liquidator or like official has been appointed over the whole or substantial part of the class licensee’s assets and such appointment is not revoked or annulled within a period of sixty days from the date of such appointment;
(e) there has been any act or default or change of circumstances such that the class licensee would no longer be entitled to be registered as a class licensee under this Act; or
(f) the de-registration of the class licensee is in the public interest.
(2) Before making a decision under subsection (1), the Commission shall give the class licensee—
(a) a written notice of its decision to de-register the class licensee; and
(b) an opportunity to make written submissions within a period specified in the written notice which shall not be less than thirty days.
(3) After the expiry of the period specified in the notice, the Commission shall, after considering any written submissions made by the class licensee, decide whether or not to de-register the class licensee.
(4) The Commission shall give the class licensee a written notice of its decision under subsection (3) as soon as practicable and the de-registration of the class licensee shall take effect on the date specified in the written notice.
(5) The class licensee who has been de-registered under subsection
(3) shall cease all activities for which its class licence relates.
Register of class licence
The Commission shall maintain a register, in accordance with section 176, which shall be made available to the public, of—
(a) all class licences approved by the Minister and registered;
(b) all class licensees registered by the Commission;
(c) any exemption orders to licensing requirements granted by the Minister; and
(d) all decisions of the Commission to de-register a class licensee.
Source: Laws of Malaysia, Attorney General's Chambers of Malaysia (lom.agc.gov.my). Not a copy of the Gazette printed by the Government Printer (Interpretation Acts 1948 and 1967, s 61).
