KUALA LUMPUR: A study will be conducted by the Energy Transition and Water Transformation Ministry on infrastructure, financing and legal challenges faced by the water resources sector.
Deputy Prime Minister Datuk Seri Fadillah Yusof, who disclosed this, said the ministry will work with stakeholders to develop a National Water Reclamation Policy.
“Rising demand from data centres and water-intensive industries is putting pressure on water resources, making water reclamation a key solution.
“Malaysia currently produces 48.5 megalitres per day (MLD) of reclaimed water and aims to reach 118 MLD by 2030 for industrial use,” he said in his keynote address at the opening of the Asiawater Expo & Forum 2026 here yesterday.
His speech was read out by Deputy Energy Transition and Water Transformation Minister Datuk Seri Abdul Rahman Mohamad.
Fadillah, who is also the Energy Transition and Water Transformation Minister, said Malaysia is strengthening long-term water security through better reserve margins, integrated river-basin management and water reuse initiatives.
“Wastewater services are also being expanded to improve environmental protection and public health,” he added.
Fadillah said amendments to the Water Services Industry Act are also being conducted to strengthen regulations on water supply, sewerage and reclaimed water.
“Malaysia’s water infrastructure is advanced but faces challenges such as ageing systems and high Non-Revenue Water (NRW).
“As the country enters the 13th Malaysia Plan, water operators are urged to improve efficiency, reduce NRW and adopt innovative financing, strong governance and closer collaboration.
“Efforts are underway to strengthen utilities through better financial management, tariff reviews and regulatory frameworks, while ensuring water security with adequate reserve margins and climate-resilient infrastructure,” he added.
Fadillah also said embracing digitalisation and data-driven decision-making is essential for modern water management, adding that sustainable water management is a shared responsibility.
“Nationwide initiatives continue to promote responsible consumption, reminding us that every drop saved contributes to a stronger, more sustainable future,” he added.
The event saw Malaysia and the Netherlands signing a memorandum of understanding (MOU) on water management, with the partnership reflecting a shared commitment to combining advanced technology with sustainable policies.
By leveraging both countries’ expertise, the aim is to enhance water ecosystem resilience, support sustainable growth and ensure access to clean, safe and reliable water for the people.
The National Water Services Commission (SPAN) also launched the SPAN Incubator Hub and announced plans to explore a Water Innovation Fund as part of efforts to strengthen Malaysia’s water and sewerage sector in line with the Water Sector Transformation Aspirations 2040 (AIR 2040).
Fadillah said this at the 14th edition of Asiawater which was launched yesterday (April 7), at the Kuala Lumpur Convention Centre (KLCC), reinforcing its position as the region’s leading platform for water and wastewater solutions in developing Asia.
As water security rises on national and global agendas, Fadillah said the event brings together policymakers, industry leaders, utilities, and technology providers to address the region’s most pressing water challenges.
Asiawater 2026 which will run until April 9, is organised by Informa Markets Malaysia, with the theme “Building Nations: Leveraging Technology-Driven Water Services for Inclusive Growth.”
The 14th Asiawater Conference convenes policymakers, utilities, and industry leaders to address key priorities, including digital transformation, infrastructure resilience, financing, and governance.
The event is expected to welcome over 20,000 trade professionals from more than 52 countries, alongside over 1,000 exhibiting brands and companies.
In his welcome address, Informa Markets Malaysia chairman Tan Sri Abdul Rahman Mamat highlighted the growing complexity of water challenges.
“We meet at a time when water is no longer viewed solely as an infrastructure issue, but as a national and strategic priority,” he said.
Reinforcing the role of Asiawater, Abdul Rahman noted that the platform continues to support informed decision-making, accelerate the adoption of proven technologies, and strengthen collaboration across the water ecosystem.
“A defining strength of Asiawater 2026 lies in its comprehensive knowledge platforms, featuring over 60 conferences, forums, and technical sessions designed to bridge policy, innovation, and real-world implementation,” he added.
SPAN chairman Abdul Kadir Mohd Din said this is due to the sector facing mounting challenges, including pressure on raw water resources, climate change, rising operational costs and the urgent need for technological adoption.
He said the sector must move towards a more innovative, resilient and knowledge-based system in line with AIR 2040, which seeks to strengthen national water security through improved operational efficiency, reduction of NRW, digitalisation and sustainable financing models.
“The SPAN Incubator Hub will provide a structured platform to support innovation mobilisation within the sector and assist industry players in making more evidence-based decisions in adopting technologies,” he said.
The hub is designed as a neutral platform for sector knowledge sharing, collaborative learning, evidence-based technology evaluation and strengthening innovation capacity across the industry.
Two key initiatives were also introduced under the framework – the SPAN Innovative & Technology Exchange (SPITE) and the proposed Water Innovation Fund.
SPITE will serve as a technology-sharing platform connecting water operators, technology providers, research institutions and industry players to improve exposure to emerging solutions.
The Water Innovation Fund is being explored as an initiative to support applied research, studies and selected demonstration projects to generate new evidence and knowledge in assessing the potential of technologies before they are considered for broader industry implementation.
The fund is being developed progressively, with SPAN reviewing governance structures, priority focus areas and a potential allocation of up to RM1mil for 2026 once the implementation mechanism is finalised.
