Malaysia: Malaysia is now moving into the second phase of the Water Sector Transformation Roadmap 2040 (AIR2040) under the 13th Malaysia Plan (13MP) to develop local technology that meets international standards, says Deputy Prime Minister Datuk Seri Fadillah Yusof. He stated that AIR2040 aims to ensure an affordable, sufficient, clean, and quality water supply while transforming the water sector into a dynamic economic contributor through strategic collaboration in research, development, commercialization, and innovation.
According to BERNAMA News Agency, the Langat 2 Water Treatment Plant (WTP), developed by Pengurusan Aset Air Berhad (PAAB), exemplifies local capability in building large-scale water infrastructure with modern water treatment technology, setting a benchmark for facilities that meet international standards. Fadillah highlighted that constructing such infrastructure with modern technology involves high costs, with PAAB acting as the financier and implementer to optimize construction costs.
Fadillah, who is also the Minister of Energy Transition and Water Transformation, mentioned during the opening ceremony of the Langat 2 WTP by Prime Minister Datuk Seri Anwar Ibrahim that under the National Water Services Industry Restructuring, PAAB manages the financing of water supply infrastructure for states engaged in the Water Services Industry Restructuring Agreement. The financing model aims to allow water operators to focus on efficient management of water supply systems, enhancing their financial resilience and stability.
Under AIR2040, the government plans to introduce alternative financing to strengthen the water sector’s financial sustainability, reducing dependence on government funds. Fadillah noted that the Ministry of Energy Transition and Water Transformation (PETRA) is exploring alternative water sources like reclaimed water for non-food-related industrial use, such as data centers.
PETRA is also focusing on reducing Non-Revenue Water (NRW) in the 13MP through the Critical Pipe Replacement Programme, holistic NRW solutions, and providing rebates to water operators that meet NRW targets. The NRW rate is expected to decrease to 28.8 percent by 2030. Additionally, cooperation with state governments will continue in planning and developing new water source infrastructure to meet domestic and critical industrial water supply needs for state development.