KUALA LUMPUR, Aug 20 — Malaysia is 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, said Deputy Prime Minister Datuk Seri Fadillah Yusof.
He said that in addition to ensuring an affordable, sufficient, clean and quality water supply for the people, AIR2040 is a national agenda to transform the water sector into a dynamic economic sector as well as to drive the development and innovation of local water technology through strategic collaboration in research, development, commercialisation and innovation.
He said the Langat 2 Water Treatment Plant (WTP), developed by Pengurusan Aset Air Berhad (PAAB), was among the manifestations that proved the local capability to build large-scale water infrastructure equipped with modern water treatment technology as a benchmark for a facility that met international standards.
“However, the construction of such water supply infrastructure using modern technology involves high costs. In this project, PAAB played the role of financier and implementer, enabling its construction to be carried out at more optimal costs compared to other commercial financing,” he said.
Fadillah, who is also energy transition and water transformation minister, said this at the opening ceremony of the Langat 2 WTP, also attended by Prime Minister Datuk Seri Anwar Ibrahim, here today.
He said under the National Water Services Industry Restructuring, PAAB was the agency that managed the financing of water supply infrastructure for states that had entered the Water Services Industry Restructuring Agreement.
“One of the main objectives of the financing model under this restructuring is for water operators to focus fully on the operation and maintenance of the water supply system to ensure management efficiency.
“This also helps ensure the financial position of water operators is more resilient and stable,” he said.
According to Fadillah, under AIR2040, the government plans to introduce alternative financing to strengthen the financial sustainability of the water sector, thereby reducing dependence on government funds.
He said the Energy Transition and Water Transformation Ministry (PETRA) is also exploring the potential of alternative water sources, such as reclaimed water for non-food-related industrial use such as data centres.
He added that PETRA is focusing on lowering non-revenue water (NRW) under the 13MP through the Critical Pipe Replacement Programme nationwide, holistic NRW solutions and the provision of rebates to water operators that successfully met the NRW targets set.
“Through these planned programmes, the NRW rate is expected to be reduced to 28.8 per cent by 2030,” he said.
Fadillah said cooperation with state governments would be continued in planning and developing new water source infrastructure to ensure water supply needs for domestic and critical industrial users for state development are met.
