Why did Putrajaya postpone enforcing Section 114 on Selangor water firms?

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Putrajaya Postpones Enforcement of Section 114 Due to Agreement by Selangor Water Firms on Buyout Offer

Putrajaya has decided to postpone the enforcement of Section 114 of the Water Services Industry Act 2006 (Wasia) on Selangor's water utility firms because three of the four companies have agreed to the state government's buyout offer. This decision, which is supported by the Selangor government, negates the need to forcibly acquire these entities. The agreements reached by Syarikat Bekalan Air Selangor Bhd (Syabas), Puncak Niaga Sdn Bhd (PNSB), and Konsortium Abbas Sdn Bhd (ABBAS) align with the ongoing water restructuring exercise in the state.
Three Water Utility Companies Agree to State Buyout Terms

Syarikat Bekalan Air Selangor Bhd (Syabas), Puncak Niaga Sdn Bhd (PNSB), and Konsortium Abbas Sdn Bhd (ABBAS) have formally agreed to the Selangor state government's takeover plan as part of the state's water restructuring initiative. This agreement signifies a significant step in resolving the long-standing issue of water concessionaire ownership in Selangor. The terms of these agreements are consistent with the memorandum of understanding that was previously signed between the federal and state governments in February.
Federal Government Supports Postponement of Forcible Acquisition

The federal government has officially decided to halt the enforcement of Section 114 of Wasia, which would have allowed for the compulsory acquisition of the water utility firms. This postponement is a direct consequence of the voluntary agreements reached by Syabas, PNSB, and ABBAS. The federal ministry, in a joint statement with the Selangor government, confirmed that there is no longer a necessity to invoke this section against these companies, indicating a collaborative approach to resolving the water sector restructuring.
Buyout Figures Reflect February Memorandum of Understanding

The financial details of the agreements indicate a total buyout price of RM6.57 billion for the three companies. Specifically, the state government's acquisition of PNSB is valued at RM2.47 billion, Syabas at RM3.11 billion, and ABBAS at RM990 million. These figures are in accordance with the terms outlined in the memorandum of understanding signed by both Putrajaya and Selangor in February, which stipulated the state's intention to take over the four water concessionaires operating within Selangor.
Selangor Continues Discussions with Remaining Concessionaire

While three companies have agreed to the state's terms, the Selangor government remains open to negotiating the takeover of Splash, the fourth water concessionaire. The state government has reiterated its readiness to proceed with acquiring the equities, assets, and liabilities of Splash, provided that its shareholders accept the price offered by the state government on February 26. This ongoing dialogue highlights the state's comprehensive approach to consolidating water management within its jurisdiction.

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Why did Putrajaya postpone enforcing Section 114 on Selangor water firms?

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