Country Presentation: Malaysia

The views expressed in this presentation are the views of the author and do not necessarily reflect the
views or policies of the Asian Development Bank Institute (ADBI), the Asian Development
Bank (ADB), its Board of Directors, or the governments they represent. ADBI does not guarantee the accuracy of the data included in this paper and accepts no responsibility for any consequences
of their use. Terminology used may not necessarily be consistent with ADB official terms.
Policy Dialogue Session on Sustainable Sanitation in Asia

21-22 September 2018
Tokyo
Country Presentation
MALAYSIA
By
Ida Syahrina binti Haji Shukor
Principal Assistant Secretary
Ministry of Water, Land and Natural Resources
Malaysia, 2017
32 m Population
329,847 Size GDP $922,894 billion

square kilometres (PPP, IMF)
Among the most

50.1% Malay Infra developed in Asia
22.6% Chinese
11.8% Indigenous People Largest forest
6.7% Indian
8.8% others
4th Cover (67.6%)
Evolution of Sewerage Services in Malaysia

Technology
Prior to 1950s
Oxidation Pond Activated Sludge/ Fully Mechanised

Pour Flush Septic Tank Imhoff Tank Aerated Lagoons Biological Filters Plant
Early Days in 1980-s 1990-s Year

1950-s 1960-s 1970-s 2000
Malaya
Primary/Primitive Treatment Partial/Full Secondary Treatment Tertiary Treatment
Address Public Health Address River Pollution Address

Environment
The sewerage systems in Malaysia has improved significantly within a span of over 5
decades
Coverage and Achievements
Proportion of Population Equivalent (PE) by Key Achievements of Sewerage Industry:

Sewerage System 2015-2016
Communal Septic Tank <1% Water borne diseases (reported cases)
Private STP Environmental risk reduced due to clean rivers

2X 58% (2015)
Pour Flush 28% (1993)
Ind. Septic Tank Growth of assets managed in sewerage industry

RM30bn (2017)
5X RM5bn (1993)
Public STP
0 10 20 30 40 50 60 70
Potential CAPEX and OPEX
2016 2015 RM5–RM10 bn/yr in wastewater industry
Adapted from: Malaysia Water Industry Guide, 2017
Source: IWK Sdn. Bhd., 2017

Coverage
2013 2014 2015 2016

SEWERAGE SYSTEM
Quantity PE Quantity PE Quantity PE Quantity PE
Public Sewage 6,167 21,549,561 6,374 22,517,132 6,571 23,517,185 6,752 24,789,450
Treatment Plant
(a+b)
a. Multipoint 6,085 15,142,046 6,288 15,724,638 6,481 16,296,052 6,659 16,964,923
Plant
b. Regional Plant 82 6,407,515 86 6,792,494 90 7,221,133 93 7,824,527
Private Sewage 2,762 2,697,074 2,972 2,813,248 3,158 2,795,877 3,338 3,009,095
Treatment Plant
Communal Septic 4,378 525,240 4,377 529,780 4,386 532,051 4,386 532,076
Tank
Individual Septic 1,306,662 6,669,142 1,324,083 6,739,192 1,321,856 6,747,774 1,343,439 6,859,823
Tank
Traditional System 894,859 4,474,293 894,859 4,474,293 894,859 4,474,293 1,154,592 5,772,960
Network Pumping 975 n.a. 1,027 n.a. 1,078 n.a. 1,117 n.a.
Station
Length of Sewer 17,384 n.a. 18,076 n.a. 18,689 n.a. 18,689 n.a.
Network (km)
Source: Malaysia Water Industry Guide, 2015-2017
Institutional Arrangements at the National/Subnational Level for Sanitation
GOVERNANCE STRUCTURE OF THE NATIONAL SEWERAGE INDUSTRY
Ministry of Water, Land & Ministry of Energy,

Ministry of
Science, Technology, Ministry of Housing & Local Ministry of Finance
Natural Resources Economic Affairs
Environment & Climate Government (KPKT) (MOF)
(KATS) (MEA)
Change (MESTECC)
Department of Department of Department of Department of Department of

Department of Budget Division Economic Planning
Sewerage Irrigation and General Director Town & Country
Environment Local Unit
Services Drainage of Lands & National Water Services
Commission
Planning Government
Mines
Sewerage Services Provider in Malaysia
Indah Water Konsortium Sdn Majaari Services Sdn Majlis Perbandaran Pasir Majlis Bandaraya Johor Department of Sewerage Department of Public Works of
Bhd Bhd Gudang Bahru Services of Sarawak Sabah
Financial Investment Structure
SEWERAGE CAPITAL INVESTMENT
GOVERNMENT CONCESSIONAIRE DEVELOPER

FUNDED FUNDED FUNDED
• 5 years National Plans • Soft Loan & Capital Markets • Part of Land & Property Development
• Sewerage Capital Contribution • Built into Tariff Structure • Major Contributor of Sewerage CAPEX
PUBLIC PLANTS O & M INVESTMENT
GOVERNMENT FUNDED SERVICE LICENSEE

FUNDED
• Soft loan/subsidy to IWK • Tariff Collection

Financial Investment
PPP: The Malaysian Experience
Smart partnership between Reasons for establishing partnership :

Government and private sector for the Characterised by the sharing of • Efficient design, construction,
purpose of providing public investment, risk, responsibility and operation and maintenance of
infrastructure, community facilities and reward between the partners infrastructure
related services • Enhanced services
Outsourcing
SOA BLT
Corporatisation BLMT
BOO Privatisation PFI
Leasing
BOT BLMOT
Land swap
Challenges and Issues
1 Disparity between urban and rural achievements in sewerage facilities coverage
2 High CAPEX for sewerage infrastructure
3 High OPEX
4 Low sewerage tariff
5 Low public acceptance/awareness on sewerage services

Expenditure on Sewerage Infrastructure Development
1,163
mil
3,214
mil
5,647
mil
2,769*
mil
?
8th MP 9th MP 10th MP 11th MP 12th MP
80% connection
Rationalisation of STP
Integration
* 2016 – 2017 only

Way Forward
11th MP
National Sewerage Master Plan
Ensure availability
and sustainable Joint Billing for Water and
management of water Sewerage Services
and sanitation for all
Connected Sewerage Services
Especially In Urban Areas
Rationalising and upgrading of
Ensure sustainable sewage treatment plants
consumption and
production patterns Waste to Wealth Initiatives
50% Bio-solids to be recycled
Bio-solids to be recycled for

50% electricity generation
1/3 Bio-effluent to be recycled

Thank You

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The views expressed in this presentation are the views of the author and do not necessarily reflect the

Policy Dialogue Session on Sustainable Sanitation in Asia

329,847 Size GDP $922,894 billion

Among the most

Policy Dialogue Session on Sustainable Sanitation in Asia

Oxidation Pond Activated Sludge/ Fully Mechanised

Early Days in 1980-s 1990-s Year

Primary/Primitive Treatment Partial/Full Secondary Treatment Tertiary Treatment

Address Public Health Address River Pollution Address

Policy Dialogue Session on Sustainable Sanitation in Asia

Proportion of Population Equivalent (PE) by Key Achievements of Sewerage Industry:

Communal Septic Tank <1% Water borne diseases (reported cases)

Private STP Environmental risk reduced due to clean rivers

Ind. Septic Tank Growth of assets managed in sewerage industry

Source: IWK Sdn. Bhd., 2017

Policy Dialogue Session on Sustainable Sanitation in Asia

2013 2014 2015 2016

GOVERNANCE STRUCTURE OF THE NATIONAL SEWERAGE INDUSTRY

Ministry of Water, Land & Ministry of Energy,

Department of Department of Department of Department of Department of

Sewerage Services Provider in Malaysia

SEWERAGE CAPITAL INVESTMENT

GOVERNMENT CONCESSIONAIRE DEVELOPER

PUBLIC PLANTS O & M INVESTMENT

GOVERNMENT FUNDED SERVICE LICENSEE

• Soft loan/subsidy to IWK • Tariff Collection

PPP: The Malaysian Experience

Smart partnership between Reasons for establishing partnership :

1 Disparity between urban and rural achievements in sewerage facilities coverage

2 High CAPEX for sewerage infrastructure

4 Low sewerage tariff

5 Low public acceptance/awareness on sewerage services

* 2016 – 2017 only

50% Bio-solids to be recycled

Bio-solids to be recycled for

1/3 Bio-effluent to be recycled

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