PUTRAJAYA, March 24 — The nation is not among countries at risk of ‘water bankruptcy’, as feared globally, as it still has sufficient raw water resources, said Deputy Prime Minister cum Energy Transition and Water Transformation Minister Datuk Seri Fadillah Yusof.
He said it receives over 2,500mm of rainfall annually, with renewable water resources exceeding 580 billion cubic metres per year, indicating no physical water shortage.
“However, the real challenge lies in managing water resources in an integrated way, protecting river basins, and improving the efficiency of the national water supply system.
“The country’s main challenge is not a lack of water, but how we manage, protect and optimise water resources strategically to ensure long-term water security, resilience, and sustainability,” Fadillah said in a statement today.
He was responding to local media reports urging the government, through the Energy Transition and Water Transformation Ministry, to develop a strategic plan to address the risk of a global water bankruptcy scenario.
Fadillah added that key issues include managing diverse water storage options, addressing encroachment into catchment areas, tackling river pollution, and better integrating alternative sources, such as groundwater and off-river storage systems.
“Overall, active dam storage can supply water for up to 90 days (three months), while the national non-revenue water (NRW) rate remains around 34.3 per cent, meaning about six million litres of treated water are lost each day.
“This loss is estimated at nearly RM2 billion a year in potential revenue. Cutting the NRW rate to 25 per cent could save the country around two million litres of water daily, without the need for new treatment plants,” he said.
Malaysia's daily water demand is expected to rise from about 19.372 million litres in 2025 to over 25,000 million litres by 2030, underscoring the need for strategic planning of new water sources.
It has 2,986 river basins, with about 30 per cent of the main ones experiencing moderate to severe pollution from industrial discharges and unchecked land use, which threatens water treatment operations.
Fadillah said current water tariffs for some operators cover only costs, emphasising the need to fast-track Integrated Water Resources Management across all major river basins.
“The use of digital technology and artificial intelligence should also be boosted through a national water sector digital hub, set to launch later this year, with a regional hub planned by 2040.
“New financing methods for the water sector, such as public-private partnerships and performance-based funding, should be expanded to accelerate NRW reduction and the development of alternative water sources,” he said, noting that continuous public awareness is needed, as Malaysians use around 225 litres per person daily, well above the World Health Organisation’s sustainable target of 165 litres.
