The Selangor government will continue with restructuring of the water services industry, a move that will revoke the agreement under the Water Services Industry Act 2006.

Menteri Besar Abdul NONE Khalid Ibrahim ( left ) said the restructuring will proceed despite objections from the federal government and water concessionaire Syarikat Bekalan Air Selangor Sdn Bhd (Syabas).

"The restructuring is necessary to keep the tariff reasonable and ensure that water services are managed in a holistic manner," he told reporters after attending the Selangor Water Forum in Shah Alam today.

The Selangor government will use several approaches including tapping groundwater resources to balance the water supply needs of consumers.

Khalid said the Selangor government would also increase water tariff once every three years at less than 12 percent.

On the absence of Syabas representatives at the forum, he said Syabas was not invited as the company is suing the Selangor government.

Syabas had filed an originating summons against the Selangor government and demanded RM471,642.916 compensation for failing to agree to a hike in water tariff.

- Bernama