Malaysia’s 31% non-revenue water target is stalled, hampered by operator finances and the pandemic, with a new 28.8% goal set for 2030.

KUALA LUMPUR: The national target to reduce non-revenue water to 31% by 2025 has been stalled. Deputy Prime Minister Datuk Seri Fadillah Yusof cited financial strain on water operators and pandemic disruptions as key obstacles.

He said achieving the target requires continuous initiatives and substantial investment. The financial position of less sustainable operators has limited their ability to implement current NRW reduction programmes.

Fadillah, who is also Minister of Energy Transition and Water, explained that existing water tariffs still do not reflect the true cost of operations. The COVID-19 pandemic in 2020 and 2021 also disrupted the implementation of planned NRW programmes.

This caused delays in some initiatives and affected the achievement of the 31% target. He was responding to a question in the Dewan Rakyat regarding the RM2.525 billion allocation under Budget 2025.

Fadillah outlined enhanced programmes through Phases 1 and 2 of the National NRW Reduction Programme. These initiatives include the replacement of critical pipelines nationwide and a holistic NRW solution in several states.

“Incentive schemes for water operators are also being continued under the National NRW Programme Approach 2,” he said. The prorated rates are designed to encourage greater participation from operators in targeted states.

He stated that with these initiatives, an NRW target of 28.8% is expected to be achieved by 2030. Fadillah added that the adjustment of water tariffs starting August 1, 2025, will also help increase cash flow for operators.

“Therefore, water operators must play an active role in reducing NRW to achieve the set targets,” he said.

 The Sun Malaysia