In the Ministry's efforts to restructure the national water services industry, two Acts have been formulated, which are the National Water Services Industry Act (NWS) and the National Water Services Commission Act (SPAN). Both were passed by Parliament on 10 May 2006 (Dewan Rakyat) and 1 June 2006 (Dewan Negara) and acceded to by the King on 10 July 2006. This new legislative framework is expected to increase the country's water services quality, particularly in protecting consumer rights. With this, the water services industry will become more effective and efficient, and will levy tariffs that are reasonable to consumers.

Subsequently, the Migration Plan Study and Regulation and Licensing Method Study were implemented with the assistance of consultants appointed by KPMG and Zul Rafique & Partners. The Ministry studied the initial drafts of the reports of both studies and held a discussion with relevant parties particularly water supply operators. The studies are expected to be finalised in the first quarter of 2007. At the same time, the Ministry also prepared a framework to begin a study on the direction of the National Sewerage Services.