Penang hawkers say a proposal to make plain drinking water free at all licensed eateries would cut into the one revenue stream keeping many stalls afloat, at the exact moment their own water bills went up.
The Penang Hawkers Association on 5 July rejected the Galen Centre for Health and Social Policy’s call for mandatory free water, calling it unworkable for operators already squeezed by rising costs.
“Whether to provide free plain water or charge customers who do not order drinks should be left to individual business owners. Every eatery has different operating costs and a different business model,” said association president Ooi Thean Huat.
He said drinks carry a profit margin of about40 percent for many eateries, a figure he described as critical to covering operating costs. “Making free plain water mandatory will inevitably affect businesses.”
The Galen Centre proposed the policy on 1 July, urging the government to require all licensed food establishments to provide free drinking water through legislation or licensing conditions. Its CEO Azrul Mohd Khalib said the measure would encourage healthier choices and reduce sugar consumption.
“In a country facing a worsening obesity and non-communicable disease crisis, plain drinking water must be made the easiest, most accessible and most affordable choice,” Azrul said.
The proposal landed on the same day Penang’s revised water tariffs took effect. Non-domestic consumers, including food premises, now pay an average of RM2.28 per cubic metre for the first 500 cubic metres, up from about RM2.13 previously. The first-tier rate rose from RM1.57 to RM1.93, while higher usage bands increased from RM2.17 to RM2.31.
The tariff adjustment is expected to generate an additional RM20 million in revenue for the Penang Water Supply Corporation and PBA Holdings Bhd in the second half of 2026, with the funds directed to water infrastructure projects.
Ooi said operators are already dealing with rising electricity, manpower and equipment costs. Some eateries charge between 50 sen and 80 sen for customers who do not order drinks, a practice he said should remain at the owner’s discretion.
Health experts raised practical concerns. Universiti Malaya’s Prof Dr Victor Hoe said while tap water is safe at treatment plants, “many food premises rely on filtration or additional treatment systems before serving drinking water, which carries extra costs for purchasing equipment, maintenance and water charges.”
Datuk Dr M. Rajen said the proposal lacks a clear benefit for both sides. “There is no clear win-win situation for businesses and customers. Restaurants will bear the cost and lose a source of income,” he said, adding that enforcement and hygiene standards would also need to be addressed.
The proposal has drawn public support. The NHMS 2023 found54.4 percent of Malaysian adults are overweight or obese. But kopitiam economics complicate the picture. Raymond Koay, 68, a Penang resident, said coffee shop owners rent stalls to hawkers for RM30 to RM50 a day and rely heavily on beverage sales.
“If they have to provide free plain water, they might as well just install a water dispenser and go home,” he said.
Other consumers backed the Galen Centre’s position. “They should provide plain water free of charge instead of charging customers between 50 sen and RM2 for a glass,” said Seri Delima resident Jennifer Ooi.
The Galen Centre pointed to Spain, the UK, parts of Australia and India, where restaurants are already required to provide free drinking water. Azrul urged the Health Ministry, Housing and Local Government Ministry, state governments and local councils to work together to introduce the requirement.
