Penang consumers will no longer be able to pay their water bills at post offices starting January, with three other third-party payment channels set to cease operations by March.
Penang Water Supply Corporation (PBAPP) chief executive officer Datuk K. Pathmanathan said bill payments via Pos Malaysia will end on January 2, while Paylink and MobilityOne will stop accepting payments from March 3. Payments through MBF will be discontinued from March 31.
He said the decision followed a directive from the National Water Services Commission (SPAN), which prohibits third-party agencies from charging water consumers collection commissions.
“SPAN informed PBAPP in February that water consumers cannot be directly charged collection fees. Despite several appeals, we were notified on November 25 that the appeal had been rejected,” he said.
Pathmanathan explained that SPAN had ruled PBAPP must absorb the commission costs if it wished to continue using third-party payment services that impose such fees.
“PBAPP has worked with these agencies for many years to provide payment convenience, but the corporation does not earn any commission from these transactions. All fees were independently charged to consumers,” he said.
In 2024, the four agencies handled 836,444 water bill transactions, representing 27 per cent of PBAPP’s total payment transactions. Commission charges ranged between 50 sen and 90 sen per transaction.
Pathmanathan noted that Penang’s domestic water tariff of 86 sen per cubic metre for the first 35 cubic metres of monthly consumption remains the lowest in Malaysia. From July 1, 2026, the rate will be revised to 93 sen per cubic metre, making it the second lowest nationwide.
He added that PBAPP provided RM80 million in domestic water subsidies in 2024 and could not continue subsidising third-party commission costs without impacting funding for critical water supply projects.
He also expressed concern over the possibility of commission rates being increased in the future.
From 2026, consumers will continue to have access to 14 commission-free payment options, including the myPBA mobile app and portal, JomPay, Maybank2U and EasyPay. Cashless payments are also available at PBAPP Customer Care Centres in locations such as Balik Pulau, Bayan Baru, Bukit Mertajam, Jawi, Kepala Batas, Komtar, Prai, Rifle Range and Taman Selat.
For consumers who prefer in-person services, PBAPP operates nine Customer Care Centres across the state.
Pathmanathan apologised for any inconvenience caused and said PBAPP must comply with SPAN’s directive as a licensed water supply operator.
