Eight change drivers of Malaysia's water sector under new AIR 2040 plan

As one of the national agendas, AIR 2040 aims to transform the water sector into a sustainable area, and a catalyst for development. 

Malaysia’s Water Transformation Roadmap 2040 (AIR 2040) was launched on 29 October 2024 (Tuesday), in a ceremony attended by Deputy Prime Minister and Minister of Energy Transition and Water Transformation Dato’ Sri Haji Fadillah Bin Haji Yusof

According to a media release from the Ministry of Energy Transition and Water Transformation, (PETRA) the AIR 2040 has the potential to drive Malaysia as a major hub for the water sector for regional countries.  

As one of the national agendas, AIR 2040 aims to transform the country's water sector into a sustainable and catalyst for economic development, ensure quality water supply and advance the fields of science, technology, innovation and economy (STIE). 

AIR 2040, which will be implemented over a period of 20 years through four phases under the Malaysia Plan, will drive security in terms of people's wellbeing. 

In a Facebook post, Dato’ Sri Fadillah Yusof said that this will be implemented through eight change drivers to holistically empower the landscape of Malaysia’s water sector, namely:  

1. Alternative financing - Development of new business and financial models to keep the water industry sector competitive, attractive and profitable; 
2. New economic sector - Water sector as a new economic sector of the country; 
3. Climate change adaptation - Readiness to reduce the impact of water risks on infrastructure and society (increased protection levels (ARI) structural design) in an effort to prepare people's situations for the impact of climate change. 
4. Virtual water and the water trail - Identifying the uses of virtual water (water required in the production of an agricultural product or the use of daily life as contained in food as vegetables and fruits) and water trail (the process of counting water scientifically starts from raw materials to the final process of production of a product) in economic sector; 
5. Advocacy and public awareness - Significant increase in awareness of Integrated Water Resource Management (IWRM) concept across all levels. ; 
6. Data integration - Establishment of Data and Research, Development, Commercial and Innovation Centre (RDIC) to develop innovative expertise and technologies in the water sector; 
7. Smart technologies - Water sector readiness towards implementation of IR4.0 and the use of smart technologies for total development of water sector, and
8. Energy-Food-Water Nexus - Sustainable management of water resources to ensure social and economic continuity of the country. 

The minister added that by 2040, the Malaysian government envisions the country becoming a water hub for developing countries and the ASEAN region. To realise this vision, Malaysia aims to establish itself as a global reference centre for research & development, innovation, and talent development within the water sector.  

By significantly increasing investments in water technology, research, and skills development, Malaysia can position itself as a global centre of excellence in this field, which will not only attract foreign investment but also generate higher-quality job opportunities for its citizens, he highlighted.

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