Malaysia still has enough raw water resources, so it does not fall into the category of nations that are at risk of “water bankruptcy,” as is feared worldwide.
Datuk Amar Haji Fadillah Haji Yusof, Deputy Prime Minister and Minister of Energy Transition and Water Transformation, stated that the real challenges to address are integrated water resource management, river basin protection, and the efficiency of the country’s water delivery system.
“Malaysia receives an average of more than 2,500 millimetres of rainfall per year with an estimated renewable water resource of more than 580 billion cubic metres per year, thus showing that the country does not face a physical shortage of water resources,” he said in a statement.
“The country’s main challenge is not water shortage but how we manage, protect and optimise water resources strategically to ensure security, adaptation and sustainability of long-term water supply.”
The ministry emphasised this in reference to a report by Harian Metro dated 23rd March 2026, which recommended that the government, through PETRA, formulate a strategic plan to overcome the risk of a ‘global water bankruptcy’ situation.
It quoted water quality and water quality modelling expert Dr Zaki Zainudin as saying that the term does not just refer to the lack of water resources alone but also involves aspects of water quality that are increasingly affected by pollution.
The media also reported that the United Nations University Institute for Water, Environment and Health (UNU-INWEH) warned that the world is entering an era of ‘global water bankruptcy’.
“I would like to inform you that among the main issues that need attention are the management of diverse water storage, encroachment on catchment areas, and river pollution, as well as the lack of integration between various alternative water sources such as groundwater, water reservoirs in and around rivers, recycled water, rainwater harvesting systems and desalination.”
“In general, active dam storage can accommodate water supplies for up to 90 days (three months).”
At the same time, the national Non-Returnable Water (NRW) rate remains around 34.3%, or approximately 6,000 million litres of treated water lost per day.
This loss is estimated to be nearly RM2 billion in revenue potential per year.
“If the NRW rate can be reduced to just 25%, the country can save about 2,000 million litres per day of additional water without having to build new water treatment plants.”
The statement went on to say that Malaysia’s water demand is expected to continue to increase from about 19,372 million litres per day in 2025 to over 25,000 million litres per day by 2030 based on the design capacity of water treatment plants, thus requiring more strategic planning of new resources.
Malaysia has 2,986 river basins, with approximately 30% of the country’s major river basins facing moderate-to-serious pollution pressures as a result of industrial emissions and uncontrolled land-use activities, which can have an impact on water treatment plant operation.
“Currently, the existing water tariff rates for some water operators are only sufficient to cover current costs.”
“In this regard, it is necessary to expedite the implementation of the Integrated Water Resources Management (IWRM) approach in all major river basins in the country and strengthen water storage strategies through the construction of water reservoirs in the river basins and fringes, increasing the capacity and function of dams, systematically mapping groundwater resources, and empowering research elements in exploring powerful and competitive technologies in water resources management.”
The creation of a national water sector digital hub, which will be introduced later this year, as well as at the regional level by 2040, is another way to improve the use of digital technology and artificial intelligence.
Furthermore, in order to expedite the implementation of NRW reduction projects and the development of alternative water sources, new methods of financing the water sector, such as public-private partnerships and performance-based financing, must be expanded.
Given that Malaysians still consume about 225 litres of water per person per day domestically compared to the World Health Organisation’s sustainable target of 165 litres, ongoing public education campaigns are also necessary to increase public awareness of the importance of water.
“Malaysia is not going to become water-bankrupt.”
“However, by 2030, supply pressure may arise in multiple areas in the absence of a thorough and integrated transformation of water resource management.”
In line with the aspirations of MADANI Malaysia, which emphasises resource sustainability and the well-being of the people, the implementation of strategies under the AIR 2040 framework will not only enable Malaysia to guarantee the country’s water security but also has the potential to emerge as a hub of excellence in the regional water sector by 2040.
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