Kuala lumpur: The ambitious goal of achieving a 31 percent Non-Revenue Water (NRW) target under the 12th Malaysia Plan has encountered significant setbacks, largely due to financial constraints faced by water operators and disruptions caused by the COVID-19 pandemic.

According to BERNAMA News Agency, Deputy Prime Minister Datuk Seri Fadillah Yusof, who also serves as the Minister of Energy Transition and Water (PETRA), emphasized the need for ongoing NRW reduction initiatives and substantial investments to meet the target. He pointed out that the unsustainable financial positions of many water operators, exacerbated by water tariffs that fail to cover operational costs, have severely limited their capacity to implement current NRW reduction programs.

The pandemic, particularly during 2020 and 2021, further disrupted the execution of planned NRW initiatives, causing delays and affecting the ability to reach the 31 percent target. Fadillah addressed these challenges in response to a query from Datuk Seri Tuan Ibharim Tuan Man (PN-Kubang Kerian) during a session in the Dewan Rakyat. The query focused on why the NRW target for 2025 might not be met despite a significant RM2.525 billion allocation under Budget 2025.

Fadillah outlined that PETRA has been working to strengthen existing programs through Phases 1 and 2 of the National NRW Reduction Programme. These efforts include replacing critical pipelines across the nation and implementing a comprehensive NRW solution in states such as Pahang, Kelantan, Perlis, Sabah, Sarawak, and Labuan.

Incentive schemes under the National NRW Programme Approach 2 are being continued to encourage participation from operators in targeted states. The prorated rates offered aim to boost operator involvement, with the expectation that the NRW target of 28.8 percent can be achieved by 2030.

Additionally, Fadillah mentioned that adjusting water tariffs under the second implementation period of the Tariff Setting Mechanism (TSM 2), beginning August 1, 2025, will help improve cash flow for operators. He stressed the importance of active participation by water operators in reducing NRW to achieve the desired outcomes.