PUTRAJAYA, March 24 — Malaysia is not at risk of “water bankruptcy,” stressing that the country still has sufficient raw water resources, but must urgently transform how it manages and safeguards its water systems, said Deputy Prime Minister Fadillah Yusof.
Speaking in response to growing global concerns, he noted that Malaysia receives more than 2,500 millimetres of rainfall annually and has over 580 billion cubic metres of renewable water resources each year, indicating that the country does not face a physical shortage of water.
“Malaysia is not a country that will face water bankruptcy. However, without comprehensive and integrated transformation in water resource management, supply pressures could emerge in certain areas by 2030,” he said.
Fadillah, who also serves as Minister of Energy Transition and Water Transformation, emphasized that the real challenge lies in improving governance, protecting river basins, and enhancing the efficiency of national water delivery systems.
His remarks follow a report citing concerns raised by water quality expert Dr Zaki Zainudin, who warned that “water bankruptcy” globally is not only about scarcity but also deteriorating water quality due to pollution. The United Nations University Institute for Water, Environment and Health (UNU-INWEH) has also cautioned that the world is entering an era of global water bankruptcy.
Fadillah highlighted several critical issues requiring immediate attention, including water storage diversification, encroachment into catchment areas, river pollution, and the lack of integration among alternative water sources such as groundwater, riverbank storage, recycled water, rainwater harvesting, and desalination.
He revealed that Malaysia’s active dam storage can currently support water supply for up to 90 days.
However, the country continues to face high levels of non-revenue water (NRW), which stands at approximately 34.3%, equivalent to nearly 6,000 million litres of treated water lost daily — resulting in an estimated RM2 billion in lost revenue annually.
“If NRW can be reduced to just 25%, Malaysia could save up to 2,000 million litres of water per day without the need to build new treatment plants,” he added.
Water demand is projected to rise significantly from about 19,372 million litres per day in 2025 to over 25,000 million litres per day by 2030, underscoring the need for strategic planning and new resource development.
Out of Malaysia’s 2,986 river basins, about 30% of major basins are currently under moderate to severe pollution pressure due to industrial discharge and uncontrolled land use, potentially affecting water treatment operations.
Fadillah also noted that existing water tariffs for some operators are only sufficient to cover operational costs, highlighting the need for reforms in sector financing.
To address these challenges, he called for the accelerated implementation of Integrated Water Resources Management (IWRM) across major river basins, expansion of water storage infrastructure, systematic mapping of groundwater resources, and stronger investment in research and innovation.
“The use of digital technology and artificial intelligence must be enhanced through the development of a national water sector digital hub, which is expected to be launched this year, and expanded regionally by 2040,” he said.
He also stressed the importance of expanding public-private partnerships and performance-based financing models to expedite projects aimed at reducing NRW and developing alternative water sources.
Additionally, Fadillah underscored the need for continuous public awareness campaigns, noting that Malaysians currently consume about 225 litres of water per person daily — significantly higher than the World Health Organization’s sustainable target of 165 litres.
Reaffirming the government’s commitment under the Malaysia MADANI framework, he said initiatives under the AIR 2040 strategy would not only ensure long-term national water security but also position Malaysia as a regional hub of excellence in the water sector by 2040.
