KUALA LUMPUR 13 April 2026 (The Capital Post) – The Energy Transition and Water Transformation Ministry is exploring new business models to address Malaysia’s persistent issue of non-revenue water (NRW), Deputy Prime Minister Fadillah Yusof said.
He explained that the move is necessary as reducing NRW treated water lost before reaching consumers—requires substantial investment, particularly in replacing ageing infrastructure such as old and leaking pipes. Authorities are assessing alternative financing and operational structures to ensure long-term sustainability without placing excessive financial burden on consumers.
Fadillah noted that discussions with stakeholders have included various proposals, including restructuring the water supply system and exploring different governance approaches. However, he acknowledged that certain options, such as a full federal takeover of water assets, remain sensitive and require careful consideration involving both federal and state authorities.
He added that any new model must balance investment needs with affordability, as infrastructure upgrades could lead to higher tariffs if not managed properly. The government is therefore studying the most effective framework that can attract funding while maintaining fair pricing for consumers.
-Advertisement-
Malaysia continues to face high NRW levels, with a significant portion of treated water lost due to leakages, theft and inefficiencies in the system. Experts have highlighted that addressing these losses is critical to improving overall water supply efficiency and avoiding the need for costly new treatment facilities.
The ministry emphasised that collaboration with all stakeholders, including state governments and industry players, will be essential in identifying a viable solution to reduce water losses and strengthen the country’s water management system.-The Capital Post