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THE Energy Transition and Water Transformation Ministry (PETRA) is committed to transforming the water sector into a vital economic driver, aiming to contribute significantly to Malaysia’s Gross Domestic Product (GDP).
Deputy Prime Minister Datuk Seri Fadillah Yusof told the Dewan Rakyat today that the water sector is essential for providing basic public services and has immense potential for growth, driven by technological innovations, infrastructure investments, and the development of related industries.
Fadillah, who is also PETRA minister, said to achieve this vision, PETRA has outlined several strategies to create a conducive environment for private investment in the water sector.
“These strategies focus on establishing a supportive policy framework, offering attractive incentives, leveraging modern technology, and fostering stronger public-private partnerships (PPP).”
The Ministry will focus on ensuring that policies related to the water sector instil confidence in investors and these initiatives include:
- Amendments to the Water Services Industry Act 2006 (Act 655);
- Introducing an Investment Incentive Framework for the Water Sector; and
- Strengthening Monitoring and Governance Frameworks.
“The government recognises the importance of public-private partnerships in attracting investment in water infrastructure projects.
“To enhance this collaboration, the PETRA plans to develop water infrastructure projects, while establishing risk-sharing mechanisms and to create public-private dialogue platforms for continuous engagement between stakeholders,” Fadillah added.
Fadillah said this in reply to a question raised by Datuk Seri Hasni Mohammad [Simpang Renggam] on the government’s comprehensive strategy to position the water sector as a dynamic and growing contributor to Malaysia’s Gross Domestic Product (GDP).
Hasni had cited that the government had planned this effort as part of the broader "AIR 2040" roadmap, designed to attract and maintain private investment, creating a robust and competitive water industry.
Fadillah added that modern technology and innovation will play a pivotal role in making the water sector more appealing to private investors and for this, the planned initiatives include developing a Digital Water Economy and fostering research and development (R&D) into water technologies, he said.
In an effort to position Malaysia as a prime destination for water sector investments, the Ministry will ramp up promotional activities by establishing a ASEAN Water Knowledge Hub and participating in international exhibitions and trade shows.
To make these initiative a success, a skilled workforce is crucial to the success of any growing industry and PETRA focus for this would be to provide training and skills development for workers in the water sector and facilitating technology transfer to strengthen industry capacity.
Fadillah said; “Through these strategic initiatives outlined in the AIR 2040 plan, PETRA is confident that it can successfully attract and retain private investment in the water sector.
“By fostering a favourable policy environment, enhancing public-private collaboration, leveraging modern technologies, and promoting Malaysia as an investment hub, the water sector has the potential to evolve into a dynamic new pillar of the economy.
“Not only will AIR 2040 enhance the sector's competitiveness, but it will also contribute to Malaysia's long-term sustainable development goals, Fadillah added.
He explained the plan aims to ensure that the water sector not only drives economic growth but also aligns with the country’s broader sustainability agenda. – March 6, 2025
