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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

Policy Dialogue Session on Sustainable Sanitation in Asia
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

Policy Dialogue Session on Sustainable Sanitation in Asia

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

Policy Dialogue Session on Sustainable Sanitation in Asia

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
Policy Dialogue Session on Sustainable Sanitation in Asia

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
Policy Dialogue Session on Sustainable Sanitation in Asia

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
Policy Dialogue Session on Sustainable Sanitation in Asia

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
Policy Dialogue Session on Sustainable Sanitation in Asia

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
Policy Dialogue Session on Sustainable Sanitation in Asia

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
Policy Dialogue Session on Sustainable Sanitation in Asia

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
Policy Dialogue Session on Sustainable Sanitation in Asia

Thank You