Finance Minister Heng Swee Keat announced during his Budet 2017 speech that beginning on 1st July 2017, water prices in Singapore will be increased by 30% in two parts over the next 2 years. This was after Water Minister Masagos Zulkifli hinted at the Government’s intention to do so last month.

Heng justified the 30% price increase by citing the rising costs of supplying water, producing water and installing associated infrastructure. The Singapore Finance Minister said as water sufficiency was a matter of national survival, rising the cost to make such investments into our water infrastructure was necessary.

“The WBF fee will increase to 92 cents per cubic metre for households that consume 40 cubic metres of water or less each month. A second tier of the fee will be introduced at a rate of $1.18 per cubic metre for households which use more than 40 cubic metres.

The potable water tariff and the water conservation tax will also be adjusted. For example, the tariff for households that consume more than 40 cubic metres of water a month will eventually increase to $1.52 from July 2018, up from the current $1.40. Water conservation tax, which is based on the water tariff, will go up to 65 per cent from July 2018, up from the current 45 per cent, for households that consume more than 40 cubic metres of water each month.”

Changed to the above WBF and WST will result in a 30% rise in water prices for Singaporeans. However, Heng Swee Keat tried to downplay the increase by citing statistics which indicated that more than 75% of households in Singapore will face water bill increases of less than $18 a month while businesses will face less than $25 increase every month.

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