BORNEO WATER & WASTEWATER EXHIBITION (BWWE) 2015

Keynote Address by:

Tan Sri Dato’ Ir. Syed Muhammad Shahabudin FASc

Borneo Convention Centre

Kuching, Sarawak

14-16 December, 2015

• President, Malaysian Water Association (1994-2006) • Chairman, SMHB Sdn Bhd (datosyed@smhb.com) • Board Member, National Water Services Commission (SPAN) • Fellow, Academy of Sciences Malaysia (ASM)

Key Challenges in taking the Water Demand

Management Forward – The Malaysian & Sarawak

Context

Acknowledgement: Sources of information from SPAN, ASM, 11th MP (EPU), UN-WWDR(2005), NWRS 2012 (EPU)

OVERVIEW

Growth Brings New

Challenges

New Challenges

• Population Increase

• Increase in urban population

• Improved well-being

• Increased economic development

Serious water challenges to sustain

population and economic growth, such as:

• Water for basic needs

• Water for the growing cities (including

industry)

• Water for food

• Water for ecosystems (environment)

• Water for energy

for the future

1. Traditional (Hard) Solution - dams : storage to bridge the gap

(still needed but social/environment problems)

- Dikes, levees, sewer networks, drainage

canals

- eco-sanitation : de-coupling water and

sanitation

- desalination

Addressing the challenges (at least two

solutions)

2. Smart (Soft) Solution

- Demand management

(reduction in usage & wastage)

- Efficiency and reuse (more crop per drop,

more produce per drop)

- Watershed management (equitable

distribution of water)

- Groundwater recharge

- Global trade / virtual water

- Flood proofing, flood retention

OVERVIEW

Since the new millennium, Variability in the

availability of freshwater is a major

concern, Promotion of IWRM concept by the Government

since 1992 (Since 2008, the Academy of Sciences

Malaysia has undertaken studies further promoting IWRM)

When water

was plentiful,

simply

provided and

taken by

those who

need it

Since Independence,

10 National 5-Year Plans

implemented. The next

Plan is the 11th (Eleventh)

(2016-2020)

The first decade since

Independence, focus was

mainly on adequate water

supply for paddy growing.

Since mid-1980s massive

programme on

industrialisation started

Developing economically efficient and

sustainable approach to allocation and use of

water is vital for sustainable economic and

social development in the face of global environmental and climate change

Aspirations for Malaysia post –

2020 (11th Malaysia Plan)

Development Stages

(Supply Driven)

Scarcity Stage

(Demand Management)

Early Stages

(pre-Independence)

PHASES IN WATER REFORMATION

1

2

3

4

Water Supply is

PURELY seen as a

SOCIAL SERVICE

based on SUPPLY

DRIVEN

management

PHASES IN WATER REFORMATION – Early Stages

For a long time since

Independence, Malaysia

has no problem over

water supply.

Using only 3% of total

available water. (South Asia nearly 60% &

Central Asia nearly 90%) Meaning – the services remain the duty

of the elected Government to provide at

a HIGHLY SUBSIDISED rate

Furthermore,

Many state water providers have been

reluctant to review water tariffs (political

seasons).

Leading to undesired consequences,

such as, lack of fund for maintenance

(insufficient subsidies) resulting in high

water losses

And

Insufficient fund for service

improvements, training and D&R

Water withdrawal against available resources (1900 – 2025)

Water sector: regional trends and projection

Source: ADB - Water For All (The Water Policy) June 2003

100

80

60

40

20

01900 1940 1950 1960 1970 1980 1990 1995 2000 2010 2025

Pacific

Southeast Asia

Northern People’s Republic of China

and Mongolia

South Asia

Central Asia

1

PHASES IN WATER REFORMATION The Impact of Malaysia’s Rapid Development

Being a developing country with

so much promises for economic

growth and development,

Malaysia has implemented 10

National 5-Year Plans (The next

Plan is Eleventh – 2016-2020)

Since mid-

1980s massive

programme on

industrialisation

started.

With industrialisation, growth of industrial belt along the

west coast of Peninsular Malaysia and the Bintulu Region

Sarawak.

The increasing demand for water by industries and the

accompanying urban developments resulted in: • Fast using up of traditional water resources.

• Declining trend in available unregulated (uncontrolled) river

flows.

• Increase in water pollution (cases of WTP had to stop

production due to high pollution in rivers from factory and

sewerage discharges (untreated or partially treated).

Water demand for industrial and domestic use rose from 0.8 billion m3 (2192 MLD) in 1980 to 3.5

billion m3 (9589 MLD) in 2000, a significant 337% increase (20 years) averaging nearly 17% per year.

The earlier decades since

Independence, focus was mainly

given on adequate water supply

for paddy growing. (The granaries currently contribute

more than 70% of National rice

production)

For water supply and sewerage services, Malaysia has far

exceeded the UN Target of Millennium Development Goals.

2

PHASES IN WATER REFORMATION Malaysia’s Fast Changing Water Scenario

Since the New Millennium,

situations hence, somewhat,

changed. The socio-economic

landscape has changed

tremendously:

The population has grown

The economy diversified

Urbanisation expanded, a

Society more affluent.

Sg. Lebam Dam

Sg. Selangor Dam

On the other hand,

• Recent frequent prolonged droughts have exposed the

emergence of “Social and Economic Water Sensitive

Areas” (attributable to rapid economic development and

Climate Change)

Malaysia on the verge of being

a developed high income

nation by 2020

• Urgent need for better

ways of planning in Water

Services Management- A

sustainable way is:

Transform from SUPPLY

MANAGEMENT (Traditional

Solution) to incorporate

Concept of WDM (Smart

Solution)

Sg. Layang Dam

Population figures 1980 : 14M 2011 : 28M

Demand (Water Supply Production)

1980: 2,000 Mld 2011 : 14,600 Mld Urban population

1980 : 35% 2011 : 73.5% NWRS 2012

2

Harnessing water productive power and

minimising its destructive force

Addressing environmental protection and

negative effect of poor management and for

urgent action

Ending fragmented responsibility for water

Integrate water resources management across all

sectors – agriculture, energy, industry, tourism,

education, health, finance, planning etc.

PHASES IN WATER REFORMATION WDM At Scarcity Stage

Increased demand of water (population growth, industries

expansion, agricultural needs,

etc.)

Severe drought

Fears of the effect of global

warming (more frequent severe

flooding and drought, stormy

weather, etc.)

Environmental degradation

from reduced environment

flows

Competing interests, such

as, irrigation, water supplies,

competition between

upstream and downstream

users.

Sungai Selangor Dam

Since the new millennium,

VARIABILITY in the

availability of fresh water is a

major concern. Becomes a Security Risk with:

Sustainable development will not be achieved

without a water-secure world – a concern for

intrinsic value of water.

3

PHASES IN WATER REFORMATION WDM at Scarcity Stage

Variability in the availability of freshwater is a major

problem.

Water is plentiful in some places but short of supply when

and where it is needed most.

Climate change threatens to exacerbate the twin problems

of scarcity and variability.

Due to prolonged drought (which could now be frequent –

climate change impacts), Water Rationing is imposed. In

recent times, the country has faced two major problems in

water supply services and imposed RATIONING.

A. Selangor, FT Kuala Lumpur and Putrajaya

(Feb – May, 2014) B. South Johor (16 Aug, 2015 till now)

Water Crisis can occur in any part of the country.

Efforts made to implement IWRM (WDM) by the

Government since 1992 but has not met with much

success.

Currently the Academy of Sciences Malaysia

(ASM) is preparing strategies for IWRM Road Map

implementation

3

The approach in WDM (IWRM)

includes:

• Draw on all water stakeholders to

collaborate and work closely

together.

• A commitment by each sector to

share water resources and agree on

sectoral allocation.

• Make the best use of water

resources by investing in and

incentivising “reduce, reuse and

recycle” system.

• Start managing groundwater as

valuable resource, especially in

water crisis.

• Revitalise irrigation institutions from

formation of irrigation services.

• Enhance challenge of the Water-

Food and Energy Nexus

TAKING WDM FORWARD Strategic Advice by Academy Sciences Malaysia (ASM)

ASM established under the Academy of

Sciences Act 1994 with the VISION “to

be the Scientific Thought Leader in

advancing Science for Malaysia to

become a contributor to science”.

Since 2008, ASM has undertaken

studies to provide advice to Government

on strategic water and water-related

policies, issues and programme.

Strategic advice include providing

guiding principle and practices for

WDM.

A report on “STRATEGIES TO

ENHANCE WDM in MALAYSIA” has

been completed with:

A full list of 27 Strategies proposed.

3

TAKING WDM FORWARD Broader Application of WDM

By considering a broader and creative

application of WDM (as defined by David

B. Brooks (2006) as challenges for the

future to:

(1) Reduce the quantity or quality of

water required to accomplish a

specific task.

(2) Adjust the nature of the task or the

way it is undertaken so that it can

be accomplished with less water or

with lower quality water.

(4) Shift the timing of use from peak to

off-peak periods.

(5) Increase the ability of the water

system to continue to serve society

during times when water is in short

supply.”

Make lower quality water attractive for

industrial, municipal and irrigation use, etc.

(eg less costly)

Benefitial for some large industries to

operate during off-peak period, usually

night time (energy cost lower and

industries could possibly be given

discounted rate ?)

(3) Reduce the loss in quantity or

quality of water as it flows from

source through use to disposal.

3

.

• Perception of the “Abundance of

Water”.

This perception continues to prevail amongst end-users and water developers

• Higher Emphasis on Water Supply

Management (WSM) compared to

WDM

The momentum gathered for WSM during the country’s rapid development

phase continues. Reluctance for investment in WDM.

• Resistance to charge and reluctance

to pay for water services

Charging and paying for the real price of water services a contentious issue.

• Weak public participation in water

management

Yet to be “visible” and organised for full interaction

• Disparity between Central and State

management approache s

Whilst Water Services Industry Act 2006 is available to provide for and

regulate water supply and sewerage services, there is a need to harmonise on

the way water is managed.

• The embedded sectorial approach. After years of development by respective sectors (water supply, agriculture,

hydro-electricity, etc.), particularly dams, there is pressure to identify

opportunities to support WDM. (Sharing use of water).

The Study on ‘Strategies to Enhance WDM in Malaysia’ , by the Academy of Sciences Malaysia (ASM), established some inherent characteristics seen to constraint efforts for WDM.

Sg. Selangor Dam

STRATEGIES TO ENHANCE WDM IN MALAYSIA - The Inherent Characteristics of Water Management

3

STRATEGIES TO ENHANCE WDM IN MALAYSIA Characteristics of a Developed and High Income Nation

In developing strategies to

enhance WDM in Malaysia, the

main characteristics that were

considered in ASM Studies are:

• A harmonised policy and law for water management for the country.

There is a need to harmonise the way water is managed nationally.

• Realistic tariffs and rates for water

supply, raw water and treated

wastewater. Future need to introduce rate for agricultural water use.

The public and the industry need to pay for more realistic

tariffs and rates in return of transparent and high level service.

Need to establish a regulatory body for agriculture water use similar to SPAN.

• Care of the environment. The society tends to have higher care for the environment.

Need to establish a regulatory body for ecosystem (environment) management (catchment management).

• High level of public participation in water management.

Many Water User Associations (WUA) formed by communities interested in various aspect of water management

• Ownership of leading edge technology

Solutions towards solving present and anticipated future problems on programmes well supported by the Government,.

• A distantly structured water industry

sector Water is seen not only as a national resource but also as a

natural capital for economic growth. The concept of water as an asset and is tradable.

3

1. Adopt WDM in Policy Decisions

SPAN has all the functions imposed on it to ensure a dedicated WDM unit be formed as an integral part of the operating system

2. Upgrade Water Supply and Sewerage Services systems to “Operation Excellence level”

To achieve “Operation Excellence level, there should not be any shortage of trained manpower to operate and maintain the systems.

3. Reduction in NRW and Per Capita Consumption.

Looking to the future (2020 and beyond), there is prospect of reducing NRW and in particular leakage towards minimum background leakage (Singapore 5% NRW, and Australia 7% NRW). SPAN has targetted 25% NRW for 2020 and 180 l/c/d for per capita consumption.

4.

Promoting Reduce, Reuse and Recycle of Water.

Recycling of wastewater, grey water or stormwater has been extensively used overseas: As an example, the total potential augmentation from sewerage treated water

effluent (operated by IWK) is estimated to be about 25% of total water demand (2020) available for non-potable use.

For Bintulu Region in Sarawak (undergoing rapid industrial and urban expansion, at the moment), percentage of potential effluent water recycled is estimated to be about 11.6% of total water demand in 2015 (or nearly 25% compared to industrial water demand)

5. Intensive Groundwater Investigation (Commencing with Aquifer Mapping).

Key argument for groundwater is being able to use it when there is a shortage of surface water. Priority should be given for groundwater development in water-scarce areas. In the NCER, North Kedah should be the target for intensive groundwater development (commencing with Aquifer Mapping) and in Sarawak at the Bintulu region.

STRATEGIES TO ENHANCE WDM IN MALAYSIA Among the Strategies (Possible Solutions)

Water Supply and Sewerage Services

3

6. Need for a Central

Regulatory Agency

With this Central Agency (possibly modelled on SPAN) service level and

governance for agriculture should improve tremendously.

7.

The potential future

Agriculture Water

Savings for use in

Inter-Sector WDM.

Potential Irrigation Water Savings in the Granaries

8. Benefitial use of

water saved for us e

by water supply and

ecosystem.

The estimated potential savings from increased irrigation efficiency (75%) in MADA is

equivalent to 291 MLD (2050) representing at least 20% of the current water supply,

requirements of the population of the 3 “water deficit” state of Perlis, Kedah and Pulau

Pinang.

STRATEGIES TO ENHANCE WDM IN MALAYSIA Among the Strategies (Possible Solutions)

Agricultural Water Services

3

The 11th MALAYSIA Plan (2016-2020) Focus Areas

LOOKING AT THE FUTURE (2016-2020)

Strategy D4 : Strengthening the

regulatory framework of the water

services industry with the National

Sewerage Master Plan, a water

demand master plan and promotion of

water to wealth initiatives.

The Government remains committed to tackling

the long-standing issues (or challenges) in water

services industry.

The following four strategies will be pursued:

Strategy D1 : Raising the financial

sustainability of the water services industry.

Strategy D2 : Expanding network and

treatment plant capacity through infrastructure

investment and use of efficient technology

Strategy D3 : Increasing efficiency and

productivity of water and sewerage services

Strategy D4

A comprehensive policy will be

prepared to promote better and

more coordinated planning through

an enhanced understanding of the

supply and demand chain from all

sources.

Establishing a water demand

management master plan

Priority will be given to reduce the

use of treated water for non-

potable uses by using alternative

water sources such as rain water

harvesting, storm water, and

treated waste water

In addition, communications,

awareness and education

programmes will be intensified to

promote the efficient and prudent

use of water.

3

Passionate Stewards of the Environment (abstracted from the Eleventh Malaysia Plan 2016-2020)

The 11th Malaysia Plan has provided for

Modernizing Agriculture :

Improving productivity and income of

farmers, fishermen and smallholders.

The focus appears to be on productivity

of crops with not much reference to

agricultural water usage or

consumption.

Strengthening the regulatory framework

of the water services (beyond 2020) for

agriculture will be most benefitial for

overall consideration of water usage

and equitable water distribution for

Inter-Sector consideration.

“The environment is no longer seen as a trade-

off to a strong economy but a prerequisite to a

sustained economic growth.

The national balance sheet fully incorporates

Malaysia’s natural assets such as forest,

mineral resources, and pristine water

sources. This facilitates better management

of these valuable endowments and allows

accountability to be assigned to relevant

agencies.”

LOOKING AT THE FUTURE (Beyond 2020)

Among the relevant agencies should be:

Regulating Agencies for:

Water Supply and Sewerage Services

(SPAN) – possibly in Sarawak in the future

Agricultural Water Services (need to be

established)

Ecosystem (Environment) Water Services

(need to be established at Federal/State

levels)

The urgent need is to move water use onto a more sustainable footing and address the legacy of what could now be deemed as the traditional allocation of water, especially to the irrigation sector, in the future.

4

CONCLUSION

Prologue

The Future of water - vision for

2050

(WWDR 2015)

The fact is there is enough water

available to meet the world’s

growing needs, but not without

dramatically changing the way

water is used, managed and

shared. The global water crisis is

one of governance much more

than of resource availability, and

this is where the bulk of the action

is required in order to achieve a

water secure world

IWRM and WDM

WDM has to be explicitly included in IWRM

planning and application and can be seen

as

“A broad adaptive strategy and an integral

part of the IWRM approach, that reduces

the use of water and wastage by better

management and reuse, rather than just

providing more supply”

WDM is being practiced worldwide but is

still in its infancy – there is no alternative

A helping hand from

Jawatankuasa Tindakan Jurutera Air

Daerah (JTJAD), Malaysia.

BORNEO WATER & WASTEWATER

EXHIBITION (BWWE) 2015

Thank you