Official Opening Address by Natural Resources, Environment and Climate Change Minister, YB Nik Nazmi Nik Ahmad.

Assalamualaikum and a very good morning to all.

I want to begin by thanking everyone for your presence and support of this Conference. It is an honour for me to be invited to open the Water Malaysia Conference 2023 and to lead the Minister’s Dialogue Session with water industry players. This Conference and the Dialogue is an effective platform for engagement and interaction among water policymakers, implementers and operators, water industry players, NGOs as well as consumers. I must hence congratulate the organiser, the Malaysian Water Association and the co-organiser, Indah Water Konsortium Sdn. Bhd, for bringing us all together today.

The theme for the Conference—Strategic Asset Management for Water and Wastewater Utilities is indeed a timely one. This is especially since, as I understand, the focus will be on managing critical and ageing assets. As we all know, renewing and replacing the nation's public water infrastructure is an ongoing task to ensure water and sewerage utilities are well maintained.

The current government is determined to ensure that all Malaysians will enjoy better access to water and that the sector can be taken to higher levels during our term in office. Water is life and we know its importance in the face of climate change as manifested in the current heatwave our nation is facing. We understand that the status quo is simply not good enough anymore and we are determined to work with all stakeholders to push the needle forward. Therefore, events like the Conference and Dialogue are all the more important.

Ladies and gentlemen,

ISSUES IN WATER AND WASTEWATER UTILITIES ASSET MANAGEMENT

Success in the water and wastewater fields obviously relies greatly in managing such assets strategically. It is clear that utility managers face many challenges. As such, the priority is understanding how we can elevate the importance of establishing effective asset management programmes. I believe this Conference can help utility managers to not only understand how to successfully approach the issue of asset management, but also how to leverage on a well-designed programme to help them better plan and overcome challenges in this field.

Malaysia needs to put our shoulders to the wheel to maintain our infrastructural assets. Water and sewerage assets are crucial both as a public service as well as for nation building. Hence, it is the duty of these assets’ custodians to provide the necessary maintenance and care as part and parcel of their environment and social governance (ESG) commitment. Good management and maintenance of these scale assets such as dams can minimise the risk of structural failure and help keep the public safe.

It must also be acknowledged that funding is also a longstanding issue when it comes to maintaining assets. Asset owners or water operators are entrusted with the task to maintain these infrastructures to ensure uninterrupted services to water and sewerage consumers. The challenges in this aspect are two pronged: first, operators face technical challenges to audit all the assets and second, a large amount of funding is required for maintenance and repair work. It is therefore pertinent that all asset managers take into account these aspects in conducting water and sewerage services.

Ladies and Gentlemen,

MALAYSIA’S WATER CHALLENGE

Let me say something about Malaysia’s water situation. Malaysia enjoys an overall high level of access to potable water supply and sanitation services. As of 2022, access to water supply is at 97.07% in urban areas and 97.03% in rural areas.

Nevertheless, as we enter into the mid-term review of the 12th Malaysia Plan, we are cognisant that a lot more still needs to be done, particularly in ensuring sustainable and uninterrupted water supply, as well as reducing non-revenue water (NRW) level.

At present, our NRW level is at 37.2%, signifying a loss of more than RM2 billion a year. Moreover, there are segments of society that still require support in accessing water supply and the Ministry is looking into ways to assist some states to ensure that their population can equally enjoy clean water supply. Water disruptions, regrettably, occur largely due to poor maintenance culture and the absence of good asset management practices. In this regard, I welcome the opportunity to discuss these and other concerns with the industry players in the Dialogue later.

Good water asset management is contingent on delivering safe drinking water to our homes and businesses through conveyance pipelines, pumping stations, treatment plants, and other infrastructure. We want to make sure that all the assets, systems, and infrastructure are reliable and that citizens get the most out of their investment in the form of well-maintained infrastructure. The ultimate goal is to ensure safe and reliable drinking water and sanitation for all citizens.

In this regard, it is my fervent hope that this Conference will provide the operators, consultants and service providers with the avenue to discuss this crucial issue to further improve our water services going forward.

We all know very well that utilities can improve and sustain the expected level of service, reduce water losses, cut unit costs, and justify tariff rates if we know our assets inventory and what is lacking, when to maintain or replace those assets, and how the assets should be operated.

Of course, this concept is sometimes easier stated than achieved. Practical policies, plans, practices, and systems need to be put in place and supported by skilled personnel. We are fortunate to have industry experts at this Conference who can help utilities leverage the latest technology, including how to track deterioration in their systems over time.

Let us also not forget the need to maintain our flood mitigation and water supply dams at a high level. Out of all 104 dams available in the country, 41 are classified as high-risk dams, of which 9 are for irrigation, 18 for water supply, and 11 hydroelectric and 3 for agricultural purpose. The oldest dam is Sg. Merah Dam in Perak which was built in 1906. Whatever their age, it is imperative that these dams do not fail and the way to ensure this is via proactive action.

In relation to this, the NRECC and its predecessors have maintained a Flying Squad since 2018 to inspect high-risk dams, led by the Water Services Division. Through this initiative, it was found that some dams are indeed in need of maintenance to prevent any unwanted structural failures that could pose risks to public safety.

The Department of Irrigation and Drainage (JPS) has also taken the initiative to develop the Malaysia Dam Safety Management Guidelines (MyDams) to provide technical guidance for dam inspection. It is our hope that these guidelines will be fully utilised by assets managers and the Ministry is working towards making this guideline a mandatory requirement in the near future.

More must also be done to protect the sources of the water themselves. Our rivers are just as important as any power plant. There has to be a mindset change in this regard; a sense of custodianship and an understanding of the impact of our actions all round. The responsibility must be borne equally by the private sector, individuals and the government.

Ladies and Gentlemen,

CONCLUSION

Providing good water and sewerage services for the nation is always a priority of the Federal Government. My Ministry, NRECC is determined to ensure the success of water management in Malaysia. Towards that, we need to strike a balance between access to water as a necessity, as well as ensuring the financial and operational sustainability of the water sector.

Somehow, we need to reach the point of equilibrium, which can guarantee that the interests of all parties are safeguarded. Hence, this Dialogue serves as a great platform to collect stakeholders' concerns and ideas to mitigate current problems and achieve effective and efficient water management in Malaysia.

The Federal Government’s responsibility is great and we know that we must provide leadership. It is also important that the state governments—whatever their political hue—coordinate and work together with us, for the good of the rakyat. At the same time, the private sector, academia and civil society’s role is crucial. Putrajaya can act as a catalyst, but ultimately, whole-of-industry and whole-of-nation approaches will be what gets us over the line.

Good water management is a strategic imperative for the Malaysian Government, not just because of resource security, but more importantly the well-being of the people. I urge all parties to work on resolving the water issue objectively, so that the rakyat will not have to suffer. Access to clean water is a basic human right, and if we are to achieve a developed nation status— we must be able to guarantee and secure continued access to clean water for our people, wherever they are. We must meet the challenges of our water management for those in urban, rural and remote areas, not just for the present but most importantly for the future.

I welcome members of the floor to use this Conference and Dialogue engagement session to exchange and share your views and possible solutions on the sustainability challenges of providing water to consumers and businesses. Let me assure you that the NRECC takes the issues raised and the feedback given in this event very seriously and will act upon them if appropriate.

Lastly, I want to thank all sponsors, speakers and participants for your support. I look forward to what I am sure will be very interesting and thought-provoking sessions by the distinguished speakers and presenters ahead. I wish all of you a fruitful and productive deliberation. On that note, it is my great pleasure to declare the Water Malaysia Conference and Exhibition 2023 officially open.

Thank you.

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