Charles Santiago, chairman of the National Water Services Commission (SPAN), says we should always be mindful that if we don’t take care of the water cycle, it will not take care of our life cycle.
WE need to move beyond rhetorics to enhance the transformation of the water industry. Concrete, actionable and measurable initiatives are required to achieve sustainable water management.
Continuous access to clean and safe water supply is a basic human right as emphasised by the UN.
Therefore, it is imperative that water be made a national security priority to ensure an urgent and innovative response to today’s climate emergency.
Water is a finite resource, and the world is facing a global water crisis marked by growing competition for freshwater resources and rapidly deteriorating water quality, resulting in a poor and declining ecosystem. There is also unprecedented biodiversity loss, and a failure to meet basic water and sanitation needs.
This crisis is exacerbated by population growth, unsustainable consumption patterns, pollution and climate change.
When we speak about the environment or climate, often times, any discourse on water takes a back seat. We do not seem to think that water is important enough to be discussed. But water is a vital need, a transport corridor and a climate regulator.
There has been a drinking water crisis in Bengaluru, India, since last month. This city, dubbed the Silicon Valley of India, is home to 80% of all global IT behemoths, including big names like Infosys and Wipro.
If the water situation there is not bad enough, the entire state of Karnataka, and the adjoining areas of Telangana and Maharashtra are also facing water scarcity.
This is a warning sign to us. Our National Water Resource Study predicts water demand in Malaysia will increase by 103% by 2050, which would be unsustainable given the current water infrastructure.
Major cities like Jakarta, Beijing, London, Tokyo, Istanbul, Cairo and Moscow are on the global grim list too.
The climate crisis is vividly illustrated by the recent floods in Dubai, which saw about 25cm of rain in just a day. That is double the UAE’s yearly average. Much of the city’s outdoor infrastructure was flooded in the worst rainfall seen since 1949.
Malaysia is blessed with high rainfall levels. We can proudly claim that rural and urban areas now have access to clean water to the tune of 97%.
It is important to remember how El Nino impacted Malaysia from 2014 to 2016. There were water cuts and dams and reservoirs that had completely dried up.
Last year, Kelantan residents complained about water that resembled milky tea. Taps in Langkawi, specifically Kuah, have been dry since Jan 31. Water cuts and low water pressure continue to plague this area. It is clear that we must act fast.
Revenues are insufficient to cover current operating and capital expenditures, let alone environmental costs. Water tariffs are low, so exploring sustainable financing mechanisms is crucial.
The water services industry has long struggled with non-revenue water (NRW). A third of our treated water is wasted due to leaks and other factors. In 2022, NRW losses were estimated at RM2.18bil. Between 2018 and 2022, the losses totalled RM8.05bil.
Water sector equilibrium requires a two-pronged approach of tackling NRW and tariff adjustments. The reduction of NRW would also reduce the need for new water treatment plants.
In order to increase treated water reserve margins, infrastructure development in both the water and sewerage sectors is critical. For the next three years, we need to allocate at least RM10bil a year to boost our water infrastructure.
ESG in water
A recent survey among 610 Malaysian-based SMEs showed a good 44% of them prioritised energy efficiency. Only 9% focused on water scarcity.
Why is water taken too lightly by SMEs? Water should be given more importance in ESG assessments.
As with the carbon footprint, every business and individual has a water footprint. For example, it takes 2,000 gallons of water to make one pair of jeans.
While businesses acknowledge that ESG is the way forward, they need to know that the water footprint is an intrinsic element of that. It is equally important to monitor the water footprint of the supply chain.
As our stakeholders and shareholders take ESG more seriously, we need to ensure a more comprehensive approach by ensuring that we calculate the water footprint of our businesses and of our supply chains.
The industry also needs to champion zero waste concepts. The output or discharges from the water and sewerage operators should be recycled, redirected, or repurposed. Few water treatment plants employ the concept of zero discharge. This must be made mandatory.
ESG is also about amplifying social and governance within the water services industry. In 2023, during the tariff review, it was agreed that the water and sewerage operators will account for and report on how the extra revenue gained due to tariff adjustments is being utilised. These reports are expected to be published on their websites.
We have taken steps to minimise corruption within the industry. As part of the corruption free pledge, all industry players are encouraged to devote at least 1% of their operating costs to training and capacity building on integrity and ethics.
Small acts when multiplied by millions of people can transform the world. Everyone has a role to play in conserving and protecting our water, from the general public to the private sector.
It’s a shared responsibility among all stakeholders. We should always be mindful that “If we don’t take care of the water cycle, it will not take care of our life cycle.”
This article first appeared in Star Biz7 weekly edition.
