Key Challenges in taking the Water Demand Management Forward The Malaysian & Sarawak Context

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1 BORNEO WATER & WASTEWATER EXHIBITION (BWWE) 2015 Key Challenges in taking the Water Demand Management Forward The Malaysian & Sarawak Context Keynote Address by: Tan Sri Dato Ir. Syed Muhammad Shahabudin FASc Borneo Convention Centre Kuching, Sarawak December, 2015 President, Malaysian Water Association ( ) Chairman, SMHB Sdn Bhd Board Member, National Water Services Commission (SPAN) Fellow, Academy of Sciences Malaysia (ASM) Acknowledgement: Sources of information from SPAN, ASM, 11 th MP (EPU), UN-WWDR(2005), NWRS 2012 (EPU)

2 OVERVIEW Growth Brings New Challenges for the future 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

3 OVERVIEW Addressing the challenges (at least two solutions) 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 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

4 PHASES IN WATER REFORMATION When water was plentiful, simply provided and taken by those who need it Early Stages (pre- Independence) Scarcity Stage (Demand Management) 1 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) Development Stages (Supply Driven) 2 Since Independence, 10 National 5-Year Plans implemented. The next Plan is the 11 th (Eleventh) ( ) The first decade since Independence, focus was mainly on adequate water supply for paddy growing. Since mid-1980s massive programme on industrialisation started Aspirations for Malaysia post 2020 (11 th Malaysia Plan) 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 4

5 PHASES IN WATER REFORMATION Early Stages 1 For a long time since Independence, Malaysia has no problem over water supply. Using only % of total available water. (South Asia nearly 60% & Central Asia nearly 90%) Water withdrawal against available resources ( ) Water sector: regional trends and projection Central Asia South Asia Northern People s Republic of China and Mongolia Southeast Asia Pacific Source: ADB - Water For All (The Water Policy) June 200 Water Supply is PURELY seen as a SOCIAL SERVICE based on SUPPLY DRIVEN management 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

6 PHASES IN WATER REFORMATION The Impact of Malaysia s Rapid Development 2 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 ) For water supply and sewerage services, Malaysia has far exceeded the UN Target of Millennium Development Goals. Since mid- 1980s massive programme on industrialisation started. 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) 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 m (2192 MLD) in 1980 to.5 billion m (9589 MLD) in 2000, a significant 7% increase (20 years) averaging nearly 17% per year.

7 PHASES IN WATER REFORMATION Malaysia s Fast Changing Water Scenario 2 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. Malaysia on the verge of being a developed high income nation by 2020 Population figures 1980 : 14M 2011 : 28M Demand (Water Supply Production) 1980: 2,000 Mld 2011 : 14,600 Mld Urban population 1980 : 5% 2011 : 7.5% NWRS 2012 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) 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. Selangor Dam Sg. Lebam Dam Sg. Layang Dam

8 PHASES IN WATER REFORMATION WDM At Scarcity Stage Since the new millennium, VARIABILITY in the availability of fresh water is a major concern. Becomes a Security Risk with: 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 Sustainable development will not be achieved without a water-secure world a concern for intrinsic value of water. 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.

9 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

10 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. 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

11 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. Make lower quality water attractive for industrial, municipal and irrigation use, etc. (eg less costly) () Reduce the loss in quantity or quality of water as it flows from source through use to disposal. (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. 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?)

12 STRATEGIES TO ENHANCE WDM IN MALAYSIA - The Inherent Characteristics of Water Management 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 Perception of the Abundance of Water. Higher Emphasis on Water Supply Management (WSM) compared to WDM Resistance to charge and reluctance to pay for water services Weak public participation in water management Disparity between Central and State management approache s. This perception continues to prevail amongst end-users and water developers The momentum gathered for WSM during the country s rapid development phase continues. Reluctance for investment in WDM. Charging and paying for the real price of water services a contentious issue. Yet to be visible and organised for full interaction 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).

13 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. Realistic tariffs and rates for water supply, raw water and treated wastewater. Future need to introduce rate for agricultural water use. Care of the environment. High level of public participation in water management. Ownership of leading edge technology A distantly structured water industry sector There is a need to harmonise the way water is managed nationally. 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. The society tends to have higher care for the environment. Need to establish a regulatory body for ecosystem (environment) management (catchment management). Many Water User Associations (WUA) formed by communities interested in various aspect of water management Solutions towards solving present and anticipated future problems on programmes well supported by the Government,. 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.

14 STRATEGIES TO ENHANCE WDM IN MALAYSIA Among the Strategies (Possible Solutions) Water Supply and Sewerage Services 1. Adopt WDM in Policy Decisions 2. Upgrade Water Supply and Sewerage Services systems to Operation Excellence level. Reduction in NRW and Per Capita Consumption. 4. Promoting Reduce, Reuse and Recycle of Water. 5. Intensive Groundwater Investigation (Commencing with Aquifer Mapping). SPAN has all the functions imposed on it to ensure a dedicated WDM unit be formed as an integral part of the operating system To achieve Operation Excellence level, there should not be any shortage of trained manpower to operate and maintain the systems. 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. 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) 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 waterscarce 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.

15 STRATEGIES TO ENHANCE WDM IN MALAYSIA Among the Strategies (Possible Solutions) Agricultural Water Services 6. Need for a Central Regulatory Agency With this Central Agency (possibly modelled on SPAN) service level and governance for agriculture should improve tremendously. Potential Irrigation Water Savings in the Granaries 7. The potential future Agriculture Water Savings for use in Inter-Sector WDM. 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 water deficit state of Perlis, Kedah and Pulau Pinang.

16 LOOKING AT THE FUTURE ( ) The 11 th MALAYSIA Plan ( ) Focus Areas 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 D : Increasing efficiency and productivity of water and sewerage services 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. 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 nonpotable 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.

17 LOOKING AT THE FUTURE (Beyond 2020) Passionate Stewards of the Environment (abstracted from the Eleventh Malaysia Plan ) The environment is no longer seen as a tradeoff 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. 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) 4 The 11 th 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 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.

18 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.

19 BORNEO WATER & WASTEWATER EXHIBITION (BWWE) 2015 Thank you