WST 2040 TO BOOST MALAYSIA’S GDP AND WATER SECTOR GROWTH - DPM FADILLAH

KUALA LUMPUR, Oct 29 (Bernama) -- The Water Sector Transformation 2040 (WST 2040) agenda launched today is expected to contribute significantly to the nation's Gross Domestic Product (GDP) in the future, says Deputy Prime Minister Datuk Seri Fadillah Yusof.

Fadillah, who is also the Minister of Energy Transition and Water Transformation, said that water had the potential to become a major economic asset due to its capacity for generating revenue, although its management currently had not yielded optimal economic returns.

He noted that the WST 2040 agenda, to be implemented in four phases under the 12th to 15th Malaysia Plans, aimed to ensure the well-being of the people through eight key drivers that would holistically strengthen the country's water sector landscape.

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"Through WST 2040, a total of 106 projects can be implemented in the 12th Malaysia Plan (2021-2025) for the short term.

"Overall, through the four phases, there are short-, medium-, and long-term plans. This includes 87 strategies, 600 targets, and 601 Key Performance Indicators (KPIs) spanning the four phases until 2040," he said.

He said this during a press conference after launching WST 2040 at the Malaysia International Trade and Exhibition Centre (MITEC) here today.

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Fadillah further explained that in this initial phase (12th Malaysia Plan), his ministry was focusing on strengthening Integrated Water Resource Management (IWRM), while the second phase (13th Malaysia Plan, 2026-2030) would focus on developing local technology that met international standards.

In the third phase (14th Malaysia Plan, 2031-2035), he said the emphasis would shift towards achieving economies of scale, while the final phase (15th Malaysia Plan, 2036-2040) aimed to position Malaysia as a regional water industry hub, especially within the ASEAN context.

He also shared that studies for the WST 2040 had been carried out since 2020, led by the Ministry of Economy in collaboration with the Academy of Sciences Malaysia (ASM).

"It has two main objectives: ensuring water security and sustainability, and transforming water into an economic opportunity," he added.

Meanwhile, Fadillah said the government planned to invite bids from the private sector as an alternative financing solution to help reduce the burden on the government in tackling the high level of non-revenue water (NRW).

He pointed out that most water-related projects were currently funded by the government, so there was a need to balance public and private funding to ensure the sector's sustainability.

"We are opening opportunities for the private sector to offer solutions, including financing packages, to not only address our current challenges but hopefully fast-track solutions in Malaysia.

"We’re talking about replacing old pipes with new ones. If fully funded by the government, the cost is estimated at around RM10 billion," he said.

Fadillah noted that the national NRW average was about 35 per cent of the total water supply, with some states exceeding 50 per cent, costing the government approximately RM2 billion annually in lost potential revenue.

-- BERNAMA