KUALA LUMPUR, Feb 24 — The 31 per cent non-revenue water (NRW) target under the 12th Malaysia Plan has been stalled, hampered by financial strain on water operators and the COVID-19 pandemic.
Deputy Prime Minister cum Energy Transition and Water (PETRA) Minister Datuk Seri Fadillah Yusof said that achieving the target requires continuous NRW reduction initiatives and substantial investment.
“However, the financial position of less sustainable water operators, due to existing water tariffs that still do not reflect the true cost of operations, has limited their ability to implement current NRW reduction programmes.
“The COVID-19 pandemic in 2020 and 2021 also disrupted the implementation of planned NRW programmes, causing delays in some initiatives and affecting the achievement of the 31 per cent target,” he said during a question and answer session in the Dewan Rakyat today.
Fadillah was responding to Kubang Kerian MP Datuk Seri Tuan Ibharim Tuan Man's query on the main reasons the 31 per cent NRW target for 2025 is unlikely to be met, despite an allocation of RM2.525 billion under Budget 2025.
He also inquired about the immediate and concrete corrective measures being taken to achieve the 25 per cent NRW target by 2030.
The Deputy Prime Minister replied that PETRA has enhanced existing programmes through Phases 1 and 2 of the National NRW Reduction Programme.
These initiatives include replacing critical pipelines nationwide and implementing a holistic NRW solution in Pahang, Kelantan, Perlis, Sabah, Sarawak, and Labuan.
“Incentive schemes for water operators are also being continued under the National NRW Programme Approach 2, with prorated rates designed to encourage greater participation from operators in the targeted states.
“With these initiatives, the NRW target of 28.8 per cent is expected to be achieved by 2030,” he said.
Fadillah added that the adjustment of water tariffs under the second implementation period (Tariff Setting Mechanism or TSM 2), starting August 1, 2025, will also help increase cash flow for operators.
“Therefore, water operators must play an active role in reducing NRW to achieve the set targets,” he said.
