Kuala lumpur: Malaysia is not among the countries at risk of 'water bankruptcy', as feared globally, due to its abundant raw water resources, stated Deputy Prime Minister and Minister of Energy Transition and Water Transformation, Datuk Seri Fadillah Yusof. He highlighted that Malaysia receives over 2,500mm of rainfall annually, and its renewable water resources exceed 580 billion cubic metres per year, indicating no immediate physical water shortage.

According to BERNAMA News Agency, the primary concern for Malaysia is not a lack of water, but rather the management of its water resources in a way that protects river basins and enhances the efficiency of the national water supply system. Datuk Seri Fadillah Yusof emphasized the importance of strategic management, protection, and optimization of water resources to ensure long-term water security, resilience, and sustainability.

Fadillah was responding to local media reports urging the government, through the Ministry of Energy Transition and Water Transformation (PETRA), to develop a strategic plan to avert a global water bankruptcy scenario. He identified key issues such as managing diverse water storage, encroachment into catchment areas, tackling river pollution, and integrating alternative sources like groundwater and off-river storage systems.

Currently, Malaysia's active dam storage can supply water for up to 90 days, with the national non-revenue water (NRW) rate around 34.3 per cent, resulting in the loss of about 6 million litres of treated water each day. This loss is estimated to cost nearly RM2 billion annually in potential revenue. Fadillah suggested that reducing the NRW rate to 25 per cent could save the country around 2 million litres of water daily, eliminating the need for new treatment plants.

Fadillah projected that the country's daily water demand will rise from approximately 19,372 million litres in 2025 to over 25,000 million litres by 2030, highlighting the necessity for strategic planning of new water sources. With 2,986 river basins in Malaysia, about 30 per cent of the main ones face moderate to severe pollution from industrial discharges and unchecked land use, posing threats to water treatment operations.

Additionally, Fadillah noted that current water tariffs for some operators barely cover costs, stressing the urgency to fast-track Integrated Water Resources Management (IWRM) across all major river basins. He also advocated for the enhancement of digital technology and artificial intelligence through a national water sector digital hub, expected to launch later this year, with a regional hub planned by 2040.

To bolster financial support for the water sector, Fadillah called for the expansion of new financing methods such as public-private partnerships and performance-based funding. This approach aims to accelerate NRW reduction and the development of alternative water sources. Moreover, he underscored the need for continuous public awareness, as Malaysians currently use around 225 litres per person daily, significantly above the World Health Organisation's sustainable target of 165 litres.