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REVIEW OF THE NATIONAL WATER RESOURCES STUDY (2000-2050) AND. FORMULATION OF NATIONAL WATER RESOURCES POLICY FINAL REPORT AUGUST 2011 VOLUME 1 EXECUTIVE SUMMARY VOLUME 2 WATER RESOURCES GOVERNANCE VOLUME 3 ENGINEERING STUDY [WoLumE 4 ENVIRONMENTAL STUDY VOLUME 5 POTABLE WATER SUPPLY IMMEDIATE WORKS VOLUME 6 WATER RESOURCES DECISION SUPPORT SYSTEM FRAMEWORK VOLUME 7 PERLIS VOLUME 8 KEDAH VOLUME 9 PULAU PINANG. VOLUME 10 KELANTAN VOLUME 11 TERENGGANU VOLUME 12 PAHANG VOLUME 13 PERAK VOLUME 14 SELANGOR, FEDERAL TERRITORY OF KUALA LUMPUR AND PUTRAJAYA, VOLUME 15 NEGERI SEMBILAN VOLUME 16 MELAKA VOLUME 17 JOHOR VOLUME 18 SABAH VOLUME 19 FEDERAL TERRITORY OF LABUAN VOLUME 20 ‘SARAWAK REVIEW OF THE NATIONAL WATER RESOURCES STUDY (2000-2050) AND FORMULATION OF NATIONAL WATER RESOURCES POLICY FINAL REPORT VOLUME 4 - ENVIRONMENTAL STUDY AUGUST 2011 TABLE OF CONTENTS Page No. SECTION 1 INTRODUCTION 10 INTRODUCTION 4 SECTION 2 OBJECTIVES AND APPROACH 20 OBJECTIVES AND APPROACH 24 SECTION 3 STRUCTURE OF THE VOLUME 30 STRUCTURE OF THE VOLUME 34 SECTION 4 GUIDING PRINCIPLES 40 GUIDING PRINCIPLES 44 4a ENVIRONMENTAL ASSETS 4 42 WATER RESOURCES SECURITY 44 43 KEY WATER RESOURCES AND ENVIRONMENTAL GOVERNANCE 4.3. CONSIDERATIONS. 4a FRAMEWORK FOR SUSTAINABLE USE OF WATER RESOURCES 44 Annex 4.1 - Current Malaysian initiatives On The Environment ‘SECTION 5 ENVIRONMENTAL PROFILE 5.0 ENVIRONMENTAL PROFILE 54 5A POPULATION 5 52 LANDUSE 53 5.2.4 The Inclusive and Exclusive Definition of Landuse 53 5.2.2 Current Landuse 54 5.2.3 Future Landuse 57 5.2.4 _ Landuse Analysis of Malaysia's Development Regions/Corridors 57 52.4.1 The East Coast Economic Region - ECER 57 5242 The Northem Corridor Economic Region - NCER 58 5243 The Iskandar Development Region - IDR. 5.9 524.4 The Sarawak Corridor Renewable Energy - SCORE 5-10 TOCA ‘TABLE OF CONTENTS (Cont-) Page No. ‘SECTION 5 ENVIRONMENTAL PROFILE (Conti-) 5.245 The Sabah Development Comtidor (SDC) 512 5.2.5 Land Capability 5413 53 SOCIO-CULTURAL PERSPECTIVES AND WATER RESOURCES 543 5.3.1 The Special Relationship between Traditional Communities and River 5-13 Basins 5.3.2 River Basins and their Cultural Heritage 515 5.3.3 The Special Position of Orang Asli Community of Peninsular Malaysia in 520 Relation to Water Resource Strategies Annex 5.1 - Landuse ‘Annex 5:2 - East Coast Economic Region (ECER) ‘Annex 5.3 - Northern Corridor Economic Region (NCER) ‘Annex 5.4 - Socio-Cultural Aspects SECTION 6 PRIORITY NEEDS OF THE ENVIRONMENT 64 ECOLOGY et 6.1.1 Status of Ecological Protected and Conservation Areas. 61 6.1.2 Status of Natural Ecosystems 62 61.21 Forest Ecosystems 63 61.22 _ Riverine Ecosystems 65 61.23 — Wellands, Peatlands and Mangroves Ecosystems 66 6124 Coastal Zone and Marine Zone Ecosystem 69 Annex 6.1 - Ecology SECTION 7 FOREST AND CONSERVATION OF WATER RESOURCES 10 FOREST AND CONSERVATION OF WATER RESOURCES 7A 7A PoLicy a 72 ENABLING LEGISLATION RELATED TO WATER RESOURCES 72 73 FOREST RESOURCES ASSETS 73 7.3.4 Distribution and Status 73 7.32 Forest TypelClassification 78 7.3.3 Conservation of Sensitive Forest Habitats 73 14 IMPACTS AND LIMITS ON WATER RESOURCES 72 7.44 Forest Logging and Harvesting 72 7.4.2 Impacts of Forest Harvesting and Runoff Management 712 7.4.3 Effects of Forest Conversion and Water Yield 713 7.4.4 Effects of Forest Removal on Flow Regimes 744 7.45 Effects of Forest Removal on Soil Erosion and Sedimentation, 744 7.4.8 Effects of Deforestation on Water Quality 7.16 7.4.7 impacts on Nutrient Loss 77 7.4.8 Summary of Impacts and Limits on Water Resources 718 18 RECOMMENDATIONS TO SUSTAIN WATER RESOURCES THROUGH FOREST 7-19 MANAGEMENT PRACTICES 7.54 Governance of Forest Resources and Assets 719 7.5.2 Conservation and Management of Water Catchment Forests 720 "ane tn? NAREFWALVel 4 EAacazmentTOC ace TOC2 ‘TABLE OF CONTENTS (Cont!-) Page No. SECTION 7 FOREST AND CONSERVATION OF WATER RESOURCES (Conti) 7.5.3 Conservation in Production Forests 7.22 7.54 Other Conservation Considerations 722 7.5.5 Maintain Database of Forest Functional Classes. 723 78 ‘SUMMARY OF RECOMMENDATIONS AND PRIORITY FOR ACTIONS. 724 Annex 7.1 - Forestry Information Annex 7.2 - Forest Management Plan (FMP) ‘SECTION 8 WETLANDS AND CONSERVATION OF WATER RESOURCES 80 WATER RESOURCES IN WETLANDS et a4 et Definition et Status of Lakes in Malaysia a4 Issues and Challenges a2 Strategic, Framowork for Sustainable Management of Lakes in Malaysia 85 The Way Forward 868 a2 WETLANDS. 86 8.2.4 Definition 86 8.2.2 Management of Wetlands in Malaysia a8 8.2.3 Importance of Wetlands 88 8.2.4 Issues and Threats to Wetlands B12 5 The Way Forward Bla ‘Annex 8.1 - Lakes And Wetlands ‘Annex 8.2 - Organisations Involved In Wetland Management In Malaysia SECTION 9 INLAND FISHERIES AND AQUACULTURE 90 INLAND FISHERIES AND AQUACULTURE on oA ‘STUDY BOUNDARY ot 92 POLICY AND LEGISLATION of 93 AQUACULTURE INDUSTRIAL ZONES o2 84 FRESHWATER AQUACULTURE 23 8.4.1 Production 83 94.2 Land for Freshwater Aquaculture os 9.4.3 Types of Aquaculture and Demand for Water Resources 26 9.4.4 Water Resources Quality and Demand a7 9.4.5 Impacts of River Dredging on Aquaculture 38 95 RECOMMENDATIONS TO IMPROVE WATER RESOURCES QUALITY 38 9.5.4 Aquaculture Products and Effluent Treatment 8 9.5.2 Best Practices for Aquaculture ont Annex 9.4 - Commercial Inland Fisheries In Malaysia Annex 9.2 - Inland Fisheries "Gena 2 NARSERALWO4EasesanenT OF de Pee ToC-s TABLE OF CONTENTS (Cont/-) Page No. ‘SECTION 10 WATER RESOURCES AND THE TOURISM AND RECREATION INDUSTRY 10.0 WATER RESOURCES AND THE TOURISM AND RECREATION INDUSTRY 104 10.1 STATUS OF THE TOURISM INDUSTRY 104 10.2 TOURISM AND WATER DEMAND 102 10.3 LITERATURE REVIEW 102 10.4 RELEVANT TOURISM STATISTICS 104 10.5 WATER-RELATED TOURISM PRODUCTS 106 10.6 WATER DEMAND PROJECTION 107 10.7 SUMMARY 109 Annex 10.1 - Tourism SECTION 11 SOLID WASTE MANAGEMENT AND WATER RESOURCES 11.0 SOLID WASTE MANAGEMENT AND WATER RESOURCES 14 11.1 PROFILE OF SOLID WASTE IN MALAYSIA ttt 11.4.1 Waste Types and Waste Stroams 14 14.4.2 Definition of Solid Waste 412 14.13 Number of Landfills 113 11.2. VOLUME OF WASTE IN MALAYSIA 114 11.3 POLICY, LEGISLATION AND INSTITUTIONAL ARRANGEMENT 116 41.4 ISSUES AND IMPACTS ON WATER QUALITY 116 11.4.1 Leachate Impact on Water Quality 417 1442 Leachate from Intermediary Facilities / Landfills 417 11.4.3 Leachate from Waste Bins 1141 44.44 Leachate from Collection Trucks 11 14.45 legal Dumping of Waste on Land and into Rivers, 4112 4446 — Wind-biown Litter and Drain-channeled Waste a2 44.47 Sewage Sludge Disposal 1442 Annox 11.1 - Solid Waste SECTION 12 WATER QUALITY 420 WATER QUALITY 124 421 INTRODUCTION tat 122 MONITORING INITIATIVES IN MALAYSIA 124 42.2.1 Department of Environment (DOE) 122 12.22 Department of irigation and Drainage (D1D) 125, 12.23 Ministry of Health (MOH) 126 12.2.4 Jabatan Mineral dan Geosains (JMG) 126 122.5 Department of Agriculture 126 12.26 National Water Services Commission (SPAN) and 126 Konsortium Sdn Bhd (IW) 12.2.7 Lembaga Urus Air Selangor (LUAS) 127 122.8 Perbadanan Putrajaya 127 TOC-4 ‘TABLE OF CONTENTS (Cont/-) SECTION 12 WATER QUALITY (Cont/-) 123 124 125 126 122.8 Natural Resources and Environment Board of Sarawak (NREB) 122'10 Sarawak Rivers Board 122.11, Public Works Department Sarawak (JKR Sarawak) ANALYSIS OF THE EXISTING MONITORING PROGRAMS IN MALAYSIA WATER QUALITY TRENDS, MAIN ISSUES AFFECTING WATER QUALITY WATER QUALITY MANAGEMENT INITIATIVES IN MALAYSIA Annex 12.4 - Water Qui ‘SECTION 13 ENVIRONMENTAL FLOWS 130 434 132 133 134 ENVIRONMENTAL FLOWS TERMS AND DEFINITIONS REVIEW OF NWRS APPROACH TO ENVIRONMENTAL FLOW FRAMEWORK FOR ASSESSING ENVIRONMENTAL FLOW APPLICATION OF ENVIRONMENTAL FLOW ESTIMATION TO STATE RIVERS SECTION 14 STAKEHOLDER PARTICIPATION AND CAPACITY BUILDING 140 14a 142 STAKEHOLDER PARTICIPATION AND CAPACITY BUILDING ‘STAKEHOLDER PARTICIPATION CAPACITY BUILDING AND AWARENESS CREATION 14.2.1 Awareness and Advocacy 14.2.2 Capacity Building Initiatives ‘SECTION 15 NATIONAL WATER RESOURCES VULNERABILITY INDEX 150 184 182 163 184 185 186 NATIONAL WATER RESOURCES VULNERABILITY INDEX (NWRVI) DEFINITION NWRVI MECHANICS ‘APPROACH RANKING AND SCORING ‘STRENGTHS AND LIMITATIONS OF THE INDEX INDICATORS AND CRITERIA 15.6.4 Water Quality 156.2 Ecology 156.3 Lakes and Wetlands 158.31 Wetlands 15632 Lakes Page No, 127 127 128 128 129 1244 12.23 134 134 132 193 13.16 14-4 144 143 14-4 14.6 1641 164 182 153 18-4 154 155 155 158 15-10 15-10 16-17 TOCS TABLE OF CONTENTS (Cont/-) Page No. SECTION 15 NATIONAL WATER RESOURCES VULNERABILITY INDEX (Cont) 156.4 Forest, 15-18 15.6.5 Population Density 15.19 15.6.6 16.21 156.7 for Water-Related Tourism and Recreational Activities 15:22 156.8 Heritage and Cultural Value 15.28 15.6.9 Environmentally Sensitive Areas (ESA) 15.30 156.10 Land Capability 15-81 15.7 OVERALL RESULTS 15.33 188 THE WAY FORWARD 1536, Annex 16.1 - National Water Resources Matrix SECTION 16 RECOMMENDATIONS AND GUIDELINES FOR THE PROTECTION OF WATER RESOURCES 16.0 RECOMMENDATIONS FOR THE PROTECTION OF WATER RESOURCES, 161 16.1 RECOMMENDATIONS 16-2 Annex 16.1 - Existing Malaysian Guidelines For Environment ‘SECTION 17 STATE SUMMARIES. 17.0 STATE SUMMARIES 174 Revision Description Originator Reviewer Approval Date 4 Issued to Client Key Team Members LM. ch ‘August 2077 ‘Widener 622 NAEP ALG AEAvmranenhTOO dee TOCé REVIEW OF THE NATIONAL WATER RESOURCES STUDY (2000-2050) AND FORMULATION OF NATIONAL WATER RESOURCES POLICY FINAL REPORT VOLUME 4 - ENVIRONMENTAL STUDY AUGUST 2011 LIST OF TABLES SECTION 5 ENVIRONMENTAL PROFILE Table 5.1 Population Sze by State, 2000 Table 5.2 Projected Population of Malaysia 2010-2050 TableS:3 Current Landuse Category of the ECER, Table 5.4 Current Landuse Category of the NCER Table 5.5 Current Landuse of Iskandar Development Region Table 5.6 Current Landuse Categories in SCORE Table 5.7 Archaeological and Heritage Features of Selected River Basins in Peninsular Malaysia SECTION 7 FOREST AND CONSERVATION OF WATER RESOURCES Table 71 Distribution, Area and Types of Forest in Malaysia in 2008 (milion ha) Table 7.2 Permanent Reserved Forest in Malaysia 2008 (milion ha) Table 7.3 Statistics of Forest Areas in Malaysia, 1990-2007 Table 7.4 Land Cover Definition Table 7.5 Trend of Forest Areas in Malaysia 1990 to 2010 Table 7.6 Water Catchment Forests in Malaysia (ha) ‘SECTION 9 INLAND FISHERIES AND AQUACULTURE, Table 9.1 Aquaculture Industry Zones (Freshwater) Identified for High Impact Projects (HIP) Table 9.2 Freshwater and Brackish Water Fishery Production in Malaysia (2008) Table 9.3 Estimated Production and Value from All Aquaculture System (1999 ~ 2008) (Value in RM Million) Table 9.4 Production from Aquaculture in Malaysia (2008) Table 9.5 Malaysian Water Quality Standard for Freshwater Aquaculture SECTION 10 WATER RESOURCES AND THE TOURISM AND RECREATION INDUSTRY Table 10.1 Tourist Arrival Statistics, 2005 - 2009, Table 10.2. Number of Hotels and Rooms by Stale, 2005 - 2008 Table 10.3 Table 10.4 Table 10.5 Table 10.8 LIST OF TABLES (Cont-) Istands with Tourism Potential Tourist Arrival Growth Rates, 2005-2010 Tourist Arrivals Projected, 2010-2060 Projected Annual Water Demand by Foreign Tourists, 2010-2050 ‘SECTION 11 SOLID WASTE MANAGEMENT AND WATER RESOURCES. Table 11.1 Table 11.2 Table 11.3 Table 11.4 Table 11.5 Total Number of Listed Landfils within the Country (as of Sept 2009) Estimated Waste Generation for Each State based on Population and Waste Generation Rates List of Lanaiflls in Malaysia (as of March 2008) Level of Improvement of the Sanitary Landfil Systems Concept of Levels 1-4 of Sanitary Landfills SECTION 12 WATER QUALITY Table 12.1 Table 122 Table 12.3, Table 12.4 Table 12.5 Number of DOE and DID Water Quality Stations by State (2009) Distribution of Industrial Water Pollution Sources by State (2008) Distribution of Sewage Treatment Plants by Stale (2008) Number of Water Intake Points by State and Total Water Supply Schemes ‘Water Pollution Sources and Potential Environmental Impacts SECTION 13 ENVIRONMENTAL FLOWS Table 13.4 Table 13.2 Table 13.3 Table 134 Table 13.5 Table 13.6 Table 13.7 Table 138 Table 13.9 Table 13.10 ‘Some Problems Related to Water Stress in Water Bodies Relative Data and Time Needs of Some Environmental Flow Assessment Methods Ecological Functions Performed By Different River Flow Levels (Checklist of Ecosystem Services Supported by Environmental Flows River Environmental Management Classes (REMC) ‘Mapping of River Water Quality to Smakhtin and Eriyagarna’s Classification ‘Assumed Level of Urbanisation of Malaysian States. Mapping of Urbanisation Level to Smakhtin and Eriyagama’s Classification Methods Applied to Rivers in Malaysian States Percentiles for Tennant (Montana) Method SECTION 15 NATIONAL WATER RESOURCES VULNERABILITY INDEX Table 15.1 Table 152 Table 15.3 Categories and Indicators for the NWRVI The NWRVI Scale Criteria and Score for Water Qualily Table 15.4 Table 15.5 Table 156 Table 15.7 Table 15.8 Table 15.9 Table 15.10 Table 15.11 Table 15.12 Table 15.13 Table 15.14 Table 15.15 Table 15.16, Table 15.17 Table 15.10 Table 15.19 Table 15,20 Table 15.21 Table 15.22 Table 15.23 Table 15.24 Table 15.25 Table 15.26 Table 15.27 Table 15.28 Table 15.29 Table 15.30 Table 15.31 Table 15.32 Table 15.33 Table 15.34 LIST OF TABLES (Cont/-) Scoring for water Quali (Percentage Rivers within Class | & Il) by State Criteria and Score for Ecological Assets ‘Sooring based on Eoological Sensitivity by State Criteria and Score for Wetlands Scoring for Wetlands by State Critetia and Score for Lake Trophic Level Scoring for Lakes (Trophic Status) by State Forest Classification in Malaysia Criteria and Score for Forest, ‘Scoring for Forest (Total Permanent Reserved Forests) by State Criteria and Score for Population Density ‘Scoring for Population Density by State (2010) Criteria and Score for Fisheries ‘Scoring for Fisheries by State Percentage of Water Bodies, Forest and Buil-Up Areas ‘Scoring for Landuse (Water Bodies, Forest and Bui Up) by State Criteria and Score for River Water Quality for Tourism and Recreation Percentage Rivers by State falling in Water Quality Classes and Scoring for Tourism and Recreation by State Final Score for Marine Water Quality for Tourism and Recreation Marine Water Quality Parameters Exceeding Standards (%), 2008 and Scoring for Marine Water Quality Overall Results for the Tourism and Recreation Sector (Overall Scoring for Tourism and Recreation by State Criteria and Score for Heritage and Cultural Values Scoring for Heritage and Cultural Values by State Criteria and Score for ESA Scoring for ESAs by State Criteria and Score for Land Capability Scoring for Land Capability by State National Water Resources Vulnerability Matrix ‘Comparisons of the NWRVI Findings with the Water-Stressed States Proposed Strategies According To Vulnerability LIST OF TABLES (Cont/-) SECTION 16 RECOMMENDATIONS AND GUIDELINES FOR THE PROTECTION OF WATER, RESOURCES Table 16.1 Summary of Recommendations for Protection of Water Resources SECTION 17 STATE SUMMARIES Table 17.1 Key State Environmental Assets Relating to Water Resources REVIEW OF THE NATIONAL WATER RESOURCES STUDY (2000-2050) AND FORMULATION OF NATIONAL WATER RESOURCES POLICY FINAL REPORT VOLUME 4 —- ENVIRONMENTAL STUDY AUGUST 2011 LIST OF FIGURES SECTION 4 GUIDING PRINCIPLES Figure 41 Need for Water Figure 42 Sustainable Water Resource Use Figure 43 Integrated Water Resources Management and Sustainable Water Use SECTION 5 ENVIRONMENTAL PROFILE Figure 5.1 Population Distribution by State, Mataysia, 1991 and 2000 Figure52 Current Landuse SECTION 7 FOREST AND CONSERVATION OF WATER RESOURCES Figure 71 Forest Areas in Peninsular Malaysia Figure7.2 Forest Areas in Sarawak Figure7.3 Forest Areas in Sabah SECTION 11 SOLID WASTE MANAGEMENT AND WATER RESOURCES Figure 11.1 Waste Projection for Peninsular Malaysia, 2000-2020 Figure 11.2 Locations of Landifil Sites and Water Intake Points in Peninsular Malaysia Figure 11.3 Locations of Landfil Sites and Water Intake Points in Sabah and Sarawak SECTION 12 WATER QUALITY Figure 12.1 River Water Quality for Basins within Malaysia forthe Year 2008 Figue 12.2 WOl by State for 2003, Figure 12.3 WOl by State for 2004 Figure 12.4 WOl by State for 2005 Figure 12.5 WOl by State for 2006 Figure 12.6 Figure 12.7 Figure 12.8 Figure 12.9 LIST OF FIGURES (Cont-) WO! by State for 2007 WAI by State for 2008 Locations of Rivers under the 1 State 1 River Program River Basins under the River Pollution Prevention and Water Quality Improvement Program by DOE ‘SECTION 13 ENVIRONMENTAL FLOWS Figure 13.1 Figure 13.2 Figure 13.3 Figure 13.4 Number of Environmental Flow Methodologies of Each Type in Use Worldwide and their Relative Proportions, Compared with the Global Total Five Steps in the Scientific Process for Developing Ervironmental Flows Adaptive Refinement of Flow Prescription Flowchart Estimation of Environmental FDCs for Different Environmental Management Classes by Lateral Shift SECTION 15 NATIONAL WATER RESOURCES VULNERABILITY INDEX Figure 15.1 National Water Resources Vulnerability Index (NWRVI) by States AF AE AAGR AKSB AN ARI BAKU BCM BKSA BLS BoD BRH cop CAPEX, CORPRI NII coas cst DAINET DBKL DID bo DOA DOE Dosa oss vs ECER ECM EIA EMP EPU EQA EScP Eto. LIST OF ABBREVIATION ‘Annual Average Flow Actual Evaporation Average Annual Growth Rate Air Kelantan Sdn Bhd Ammoniacal Nitrogen Average Recurrence Interval Bekaian Air Kelantan Utara Billion Cubic Metres Badan Kawal Selia Air Pahang /State Water Regulatory Body Barat Laut Selangor Biochemical Oxygen Demand Bernam River Headworks Chemical Oxygen Demand Capital Expenditure Corporatization/Privatization Critical National information Infrastructure Council of Australian Government Centralised Septic Tanks Development Alternatives Information Network Dewan Bandaraya Kuala Lumpur Department of Irrigation and Drainage / Jabatan Pengairan dan Saliran Dissolved Oxygen Department of Agriculture Department of Environment / Jabatan Alam Sekitar Drought Sequence Analyses Decision Support System Department of Veterinary Services Malaysia Eastem Corridors Economic Region Energy Commission of Malaysia Environmental Impact Assessment Environmental Management Plan Economic Planning Unit (Federal) Environmental Quality Act Erosion and Sediment Control Plan Evapo-transpiration FAO FR FT FTPP. FTWCR FTWRD FWRD GDP GEV ais GNP wh ewhia Gwe ha HEP IADA IADP. Icm IczM lowe IFM IFR ILaM INwas IP IPP IRBM Ist ISRWT IUCN wk IwRM IWRSNR, JAS JBA LIST OF ABBREVIATION Food and Agriculture Organisation Forest Reserves Federal Territory / Wilayah Persekutuan Fair Trade Practices Policy Federal Tertitories Water Resources Council Federal Territories Weter Resources Department Federal Water Resources Division Gross Domestic Product General Extreme Value ‘Geographical Information System Gross National Product Gigawatt-hour Gigawatt-hours per annum Global Water Partnership hectare Hydro-electric Project Integrated Agricultural Development Area Integrated Agricultural Development Project Integrated Catchment Management Integrated Coastal Zone Management Intemational Conference on Water and the Environment Integrated Flood Management In-Flow-Requirement Integrated Lake Basin Management Interim National Water Quality Standard Intellectual Property Independent Power Producer Integrated River Basin Management Individual Septic Tanks Inter-State Raw Water Transfer International Union for the Conservation of Nature Indah Water Konsortium Sdn Bhd Integrated Water Resources Management IWRS - Northern Region of Peninsular Malaysia Jabatan Alam Sekitar / Department of Environment Jabatan Bekalan Air / Water Supply Department (ona ESE? NWREFNALL OF Aevaten oe i JICA JKR JMG JPS JPSPN KeTTHA KKM kw Kwa kWh Lap LPPP Weld or lod wid of twa LNG Ln2P LNsP LSAN Luas LUAN MADA MAF MAM MAR MARDI Mcal McM Mo ME MHLG MI Mid LIST OF ABBREVIATION Japanese International Cooperation Agency Jabatan Kerja Raya / Public Work Department Jabatan Mineral dan Geosains / Department of Minerals and Geo-Science Jabatan Pengairan dan Saliran / Department of Irrigation and Drainage Jabatan Pengurusan Sisa Pepejal Negara Kementerian Tenaga, Teknologi Hijau Dan Air Malaysia / Ministry of Energy, Green Technology and Water Malaysia Kementerian Kesihatan Malaysia / Ministry of Health Kilometre kilowatt Kuching Water Board kilowatt-hour Lembaga Air Perak Laporan Penyiasatan Pengeluaran Padi litresfcapitalday ltresiworkeriday Liquefied Natural Gas Log-normal 2- parameter Log-normal 3-parameter Lembaga Sumber Air Negeri Kedah Lembaga Urus Air Selangor / Selangor Water Management Authority Lembaga Urus Air Kedah / Kedah Water Resource Board Muda Agricultural Development Authority Mean Annual Flood Mean Annual Minimum Mean Annual Catchment Rainfall Malaysian Agricultural Development institute Malaysian Criteria & Indicator Million Cubic Metres Maximum Demand Muttiple Effect Ministry of Housing and Local Government Million Litres Million Litres Per Day MMD MNC MNMP MOH MoNRE/NRE MP MSF MSMA MVA Mw. m3is NAHRIM NAM NATIP NCER NDWasP NERC NGO NIPP NLC NREO NRW NWI NwMs: Nwams NWR NWRD NWRL NwRP NWRS Nwsc oie OPP3 PAAB PCCipce PDMP LIST OF ABBREVIATION Malaysian Meteorological Department / Jabatan Meteorologi Malaysia Multinationals Company Malaysian National Medicine Policy Ministry of Heaith Ministry of Natural Resources and Environment Malaysia Malaysia Plan Multistage Flash ‘Manual Saliran Mesra Alam ‘Manufacturing Value-added Megawatt Cubic metres/second National Hydraulic Research Institute of Malaysia Non-aligned Movernent National Timber Industry Policy Northern Corridors Economic Region National Drinking Water Quality Surveillance Programme National Environment Research Council Non Government Organisation National Intellectual Policy National Land Council Natural Resources and Environment Ordinance Non Revenue Water National Water Initiative National Water Market System National Water Quality Management Strategy National Water Resources Council National Water Resources Department National Water Resources Law National Water Resources Policy National Water Resources Study National Water Services Commission Organization of Islamic Conference Third Outiine Perspective Plan Pengurusan Aset Air Berhad Per capita consumption Power Development Master Pian "Gone 652 NAROF WALLA Ot Areva de wv PE PFR PGMS PME PMP PPA PSMP PTG RBC RC RDC RDZ RO SAINS SAIP SALCRA SAMB SAP sBCP SCORE spc SESB SESCO SEB SFMLA SFZ SITExT SMI SPAN ssmP sTIDC sTP LIST OF ABBREVIATION Population Equivalent Permanent Reserved Forests Pacific Garbage Management Systems Probable Maximum Flood Probable Maximum Precipitation Power Purchase Agreement Power Systems Development Master Plan Pejabat Tanah dan Galian / Land and Mines Department Public Works Department / Jabatan Kerja Raya Rotating Biological Contractor Reinforced Concrete Regional Development Corridor Regional Demand Zone Reverse Osmosis ‘Syarikat Air Negeri Sembilan Sdn Bhd ‘Sabah Agro-Industrial Precinct ‘Sarawak Land Consolidation and Rehabilitation Authority ‘Syarikat Air Melaka Berhad Sabah Agricultural Policy ‘Sapangar Bay Container Port ‘Sarawak Corridors of Renewable Energy ‘Sabah Development Corridor Sabah Electricity Sdn Bhd ‘Sarawak Electricity Supply Company Sarawak Energy Berhad ‘Sustainable Forest Management License Agreement ‘Sapangar Free Zone ‘Sandakan Integrated Trade Exchange Terminal ‘Small And Medium industry Suruhanjaya Perkhidmatan Air Negara J National Water Services Commission ‘Sabah Shoreline Management Plan Sarawak Timber Industry Development Corporation Sewage Treatment Plant Sibu Water Board State Water Resources State Water Resources Agency State Water Resources Council State Water Resources Department SWRTC. SYABAS, Tom Tem TNB Tonnes/ha TOR Tss UNDP UPEN uRS ve waMco, wom Wr WHO wal waip WRP WROMC ‘WsIA LIST OF ABBREVIATION State Water Resources Technical Committee ‘Syarikat Bekalan Air Selangor Sdn Bhd Total Catchment Management Transient electromagnetic Tenaga Nasional Berhad Metric tons per hectare Terms of Reference Total Suspended Solids United Nations Development Programme Unit Perancang Ekonomi Negeri / State Economic Planning Unit Conduct a User Requirements Study Vapour Compression Water Asset Management Company ‘Water Demand Management ‘Water for the Future ‘World Health Organization Wilayah Persekutuan / Federal Territory Water Quality Index ‘Water Quality Improvement Plan Water Resources Plans Water Resources Development and Management Corporation Water Services Industry Act 2006 Water Treatment Plant World Water Council REFERENCES ‘Abdul Rahim, N and Zulkifi Y. (1994). 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Ministry of Agriculture and Agro-Based industry Malaysia. REFERENCES (Cont/-) Department of Fisheries (2008). Production from Aquaculture in Malaysia 2008. Ministry of Agriculture and Agro-Based Industry Malaysia. Department of Irrigation and Drainage (1986). Sungai Tekam Experimental Basin Transition Report, July 1980 - June 1983, Ministry of Natural Resources and Environment, Malaysia. Department of Irrigation and Drainage (2000). Urban Stormwater Management Manual for Malaysia (MASMA). Ministry of Natural Resources and Environment, Malaysia Department of Irrigation and Drainage (2001). Guidelines for of Natural Resources and Environment, Malaysia. ivers and River Reserves. Ministry Department of Irrigation and Drainage (2010). Study of the Impacts on Land Development Activities on Water Resources of Sg Kelantan and the Development of a Conservation Plan Ministry of Natural Resources and Environment, Malaysia Department of Statistics (1983). 1980 Population Census. 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Pollution Killing Tasik Chini. http:/ithestar.com,my/news/story asp? file=/2004/7 26ination/8510259&sec=nation. Date accessed: March 22, 2010. Douglas, |., Greer, A¥., Kawi, B. and Sinun, W. (1993). Impacts of road and compacted ground ‘on post-logging sediment yield in a small drainage basin, Sabah, Malaysia. in J.S. Gladwell (Ed): Hydrology of Warm Humid Tropics Regions, Intemational Association of Hydrological Sciences Publication, No. 216. pp. 213-218 Dyson, M., Bergkamp, G., and Scanlon, J. (eds) (2003). Flow. The Essentials of Environmental Flow. IUCN, Gland and Cambridge, UK. "ere 62 NRSIFNALWOIAEAsmsarrtPvnecn doe Roi REFERENCES (Cont/-) Economic Planning Unit (1971). First Malaysia Plan Land Capability Classification Report, West Malaysia. Economic Planning Unit, Prime Minister's Department, Kuala Lumpur. Economic Planning Unit (2001). Eighth Malaysia Plan 2001-2005. Economic Planning Unit, Prime Minister's Department, Putrajaya, Economic Planning Unit (2006), Minister's Department, Putrajaya, h Malaysia Plan 2006-2010. Economic Planning Unit, Prime Economic Planning Unit (2008). Mid-term Review of Ninth Malaysia Plan (2006-2010). Economic Planning Unit, Prime Minister's Department, Putrajaya. Economic Planning Unit (2008). National Study for the Effective Implementation of IWRM in Malaysia Report. Economic Planning Unit, Prime Minister's Department, Putrajaya Economic Planning Unit (2010) Tenth Malaysia Plan 2011-2015. Economic Planning Unit, Prime Minister's Department, Putrajaya. Ministry of Natural Resources and Environment (2008). Environmental Quality (Control of Pollution from Solid Waste Transfer Station and Landfill) Regulations 2009. Ministry of Natural Resources and Environment, Malaysia, FAO-FRA/ Food and Agriculture Organisation-Global Forest Resource Assessment (2010). Forest Resources Assessment 2010. 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JICAI Japan International Cooperation Agency (2009). The Study on National Solid Waste Minimisation in Malaysia. Ministry of Housing and Local Government Malaysia. Jennings, S., Nussbaum, R., Judd, N. and Evans, T. (2003). The High Conservation Value Forest Tool Kit. ProForest, Oxford, UK. REFERENCES (Cont/-) Johor National Parks Corporation. Our Areas. hitp://ichorparks.com.my/about/our-areas!. Date accessed: April 2, 2010. Jurutera Jasa (Sarawak) Sdn Bhd (2009), The Sarawak Integrated Water Resources Management Master Plan Study. State Planning Unit, State Government of Sarawak. Krchnak, K., Richter, B. and Thomas, G. (2008). Integrating Environmental Flows into Hydropower Dam Planning, Design, and Operations. Water Working Notes No. 22. Water Program Partnership. Sustainable Development Network, The World Bank, Washington DC. Kuraji, K. and Paul, L. L. (1994), Effects of rainfall interception on water balance in two tropical inforest catchments, Sabah, Malaysia, In T, Ohta (Ed) Proc. Of the International Symposium on Forest Hydrology, University Tokyo, Tokyo, pp. 291-298, Legal Research Board (2006) Environmental Quality Act of 1974 (Act 127) and Subsidiary Legislation. International Law Book Services, Kuala Lumpur. Local Government Department (2005). National Strategic Plan for Solid Waste Management 2005 Ministry of Housing and Local Government, Malaysia. MA. Clarke and R.P.D., Walsh (2006). Long-term erosion and surface roughness change of rain-forest terrain following selective logging, Danum Valley, Sabah, Malaysia. Catena 68:109 ~ 123. Malaysian Timber Council (2009). MTC Annual Report. Malaysian Timber Council Maimer, A. (1993). Dynamics of hydrology and nutrient losses as response to establishment of forest plantation. A case study on tropical rainforest land in Sabah, Malaysia. Published Ph. 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Ministry of Natural Resources and Environment, Malaysia "Genoa 02 WORSENING EAsaserarfnemon doe Rev REFERENCES (Cont-) Ministry of Natural Resources and Environment (2009). Environmental Quality Act 1974. Ministry of Natural Resources and Environment, Putrajaya, Malaysia. Malaysian Timber Certification Council) MTCC (2002). Malaysian Criteria, Indicators, Activities and Standards of Performance for Forest Management Certification (MC&I). Malaysian Timber Certification Council, Kuala Lumpur. Nykvist, N., Grip, H., Sim, B.L., Malmer, A. and Wong, F.K. (1994). Nutrient losses in forest plantations in Sabah, Malaysia. Ambio, 23(3): pp. 210-215. Cyebande, L. (1988). Effects of tropical forest on water yield. In E. R. C. Reynolds and F. B. Thompson (Eds) Forest, Climate and Hydrology: Regional Impacts. The United Nations University, Japan. 217pp. Ozdemir, ADeniz, Omer Karaca, M. Kemal Erkus (2007). Low Flow Calculation To Maintain Ecological Balance In Streams. 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Applic. 19, pp. 397-441. Doi: 10.1002/Rra.736. ‘The Nature Conservancy (2006). Environmental Flows: Water for People, Water for Nature. TNC MRCSO1730. Boulder, CO: Nature Conservancy. ‘The Nature Conservancy (2010). Environmental Flow Prescriptions. hitp:/www.nature.ora/ initatives/freshwater/misc/art16857 html. Date accessed: March 17, 2010. Ti, T.C. (1994). Issues and Challenges in Developing Nature Tourism in Sabah. Proceedings of Seminar on Nature Tourism as a Tool for Development and Conservation, Kundasang, Sabah. Kota Kinabalu: Institute for Development Studies (Sabah), Konrad Adenauer Foundation, 1994. 125 pp. United Nations Environment Programme/ UNEP (2000). Planning the Management of Lakes and Reservoirs: An Integrated Approach to Eutrophication. Environmental Publications from United Nations Environment Programme (UNEP) and Key International Organisations. 87 pages. ISBN 9280718 10x. Verdegem, M.C.J. and Bosma, RH. (2009). Water withdrawal for brackish and inland aquaculture, and optionsto produce more fish in ponds with present water use. Water Policy 11 ‘Supplement 1 (2009) 52-68, Water Resources Consulting Service (1994). Water Resources Master Plan Negeri Sabah. Natural Resources Office Sabah, Malaysia, World Wildlife Fund (2009). High Conservation Value Forest (HCVF) Toolkit for Malaysia - A national guide for identifying, managing and monitoring High Conservation Value Forests. Oxtober 2009. 64 pp. World Wildlife Fund-Malaysia and Cubitt G. (1998). National Parks and Wild Places of Malaysia World Wildlife Fund-Malaysia Zati, S. and Zulkifi, Y. (2007). National Overview “The Status of Eutrophication of Lakes in Malaysia”. Colloquium on Lakes and Reservoir Management: Status and Issues, 2-3 August 2007, Putrajaya, Malaysia Zulkifi Y., Douglas,l., and Abdul Rahim, N. (2006). Export of dissolved and undissolved nutrients from forested catchments in Peninsular Malaysia. Forest Ecology and Management, 224 pp. 26-44, "Geni 62 NURSE RALWOLAEaarenrerncn. doe Rovil REFERENCES (Cont-) Zulkifi, Y., Abdul Rahim, N. and Baharuddin, K. (1993). Selective logging in Malaysia: impacts on streamwater chemistry. Paper presented at International Symposium on Forest Hydrology, Canberra, November, 1993 Zulkifi, Y., Baharuddin, K. and Abdul Rahim, N. (1998). Estimating rates of nutrient recovery following timber harvesting in a second growth forest of Peninsular Malaysia. Forestry Science, Vol 54. Kluwer Academic Publisher, Dordrecht, 419-429, GoneahR 2 NARGF WALLA EAnaninenteloenca de Revi REVIEW OF THE NATIONAL WATER RESOURCES STUDY (2000 - 2050) AND FORMULATION OF NATIONAL WATER RESOURCES POLICY FINAL REPORT, VOLUME 4 - ENVIRONMENTAL STUDY AUGUST 2011 SECTION 1 INTRODUCTION 10 INTRODUCTION INTRODUCTION Malaysia's development is guided through its system of five-year development plans, which apply economic planning as its primary tool. In order to attain a fully developed and high- income nation status by 2020, the country has undergone massive landuse and resources Uptake changes to transform the economy dependent on agriculture and mining to one driven by industrialisation and knowledge. While there are many positive results arising from such development to improve the standards and quality of life of the population, these often come at a high cost to the environment in general and the water resources in particular. A major consequence of the degradation of the environment is water quality deterioration that in tun negates the very quality of lfe that the country wants to achieve. In general, land development and population growth affect both water quality and quantity Through landuse change, the land will be depleted of nutrients, which in turn will affect the natural habitats and survival of fauna species that are dependent on it for food and shelter. Water resources are thus not only required for human consumption and to power the economy, but are vital for the survival of fauna and flora and their biodiversity. This Study is incomplete if a volume on the water resources and the environment is not included in, because economic growth, water and the environment are symbictically linked; one cannot exist without the other. This connection is reflected in all the five-year development plans, the ‘most recent being the Tenth Malaysia Plan 2011 ~ 2016, which treats natural resources and water as Malaysia's natural endowments. This ‘Environmental Study’ is Volume 4 of the Review of the National Water Resources Study 2000 ~ 2050 and Formulation of a National Water Resources Policy (2010). It contains a nationwide overview of water resources for water security and to sustain environmental integrity. it complements the other four sectoral volumes of the Final Report, namely: Volume 2: Water Resources Governance, Volume 3: Engineering Study, Volume 5: Potable Water Supply Immediate Works, and Volume 6: Water Resources Decision Support System Framework. The review will cover the period from 2010 to 2050, In the previous National Water Resources Study (2000-2050) in Peninsular Malaysia, only a chapter in Volume 4 covered ‘Environmental Considerations’. The fact that in this current review, a whole volume is devoted to the environment is a reflection of the increased recognition of the significance of the environment in relation to water resources planning and sustainable management. As in the NWRS (2000), the term ‘environment’ is taken to include all physical, biological and social components of an area or site. With respect to water needs and sustainable water use, the relationships with these components are both direct and indirect. Direct, in that an adequate supply of clean water is required to maintain ecosystems, such as lakes and wetlands and aquatic flora and fauna; and indirect in that changes or modifications to landuse, particularly forest cover, will change the water and sediment runoff regimes often to Peet Ene view ofthe National Water Resources (2000 - 2050) and Formulation of National Water Resources Policy FIRMA ~ Volume 4 Environmental Study, Final Report, August 2011 INTRODUCTION ~ Ranhill Consulting Sn Bhd ~ the detriment of riverine and estuarine ecosystems, and will cause economic and social hardships through more frequent and severe flooding, For the purpose of this review, the major study sectors that have relevance to water resources and the environment are provided below. Agriculture and animal husbandry are not included here although they have very significant impacts on land and water resources, as they are thoroughly covered in detail in Volume 3 (Engineering Study) and Volume & (Potable Water Supplies Immediate Works), and all the State Reports, and will nt be repeated here. ‘The list of studies in this Volume 4 will include: + Population + Landuse * Cultural and Heritage + Ecology + Forestry + Lakes and Wetlands + Inland Fisheries and Aquaculture * Recreation and Tourism = Solid Waste + Water Quality © Environmental Flow In this report, the coastal areas extend seawards to three nautical miles from the coastline, Which is the limit of State coastal and marine jurisdiction. A nation-wide overview of water resources and environmental integrity for these sectors, except for Coastal Areas, is presented in this volume. The Study on Coastal Areas is presented in Volume 3. More detailed information for each of the 13 States and for the three Federal Territories of Kuala Lumpur, Putrajaya and Labuan are presented in the State Reports (Volumes 7- 20) "ivan an 60:2 WHRFNALIVaIA EAstesiantecion 100 1-2 REVIEW OF THE NATIONAL WATER RESOURCES STUDY (2000 - 2050) AND FORMULATION OF NATIONAL WATER RESOURCES POLICY FINAL REPORT, VOLUME 4 - ENVIRONMENTAL STUDY. AUGUST 2011 SECTION 2 OBJECTIVES AND APPROACH 2.0 OBJECTIVES AND APPROACH OBJECTIVES AND APPROACH The main objective of Volume 4 is to provide an overview of the nation’s environmental assets that are dependant upon or are affected by water use, It presents a selected number of key environmental sectors that most require water for their very survival, e.g. wetlands, forests, and assets that, if lost or degraded, would adversely affect the water resource regimes, Information and knowledge of this will assist the States in the allocation of water resources for a variety of needs on a sustainable basis in future ‘A summary overview on a State-by-State basis of areas of water stress, and areas where water resources are healthy, is presented in a vulnerability matrix by State. A number of environmental diagnostic indicators have been selected to develop the National Water Resources Vulnerability Index and for each, an objective ranking system is devised, allowing States and areas that are under water stress to be identified, and remedial actions targeted Factors that limit and threaten the environmental integrity have also been identified with recommendations for improvement and sustainable management proposed. In terms of approach, we follow the axiom that the governance of water in Malaysia has become very complex and more so when the environment is taken into consideration. Any water crisis ranging from water being too little, too much and too polluted is now considered @ crisis of governance, At the 2002 World Summit on Sustainable Development held in Johannesburg (South Africa), Malaysia, together with many other countries of the world, re- affirmed its commitments to the concept of integrated water resources management (IWRM) and to develop Water Efficiency Plans by 2005. The date has since been amended to allow countries to develop their Water Efficiency Plans according to their time schedule. The main aim is to improve water resource use efficiency through integrated management of land, water and living ecosystems, while strengthening the national capacities to overcome any water crisis, To ensure water security and the optimal use of water resources in the country, the Federal Government is now providing the initiatives to create an enabling environment for greater conservation of water source areas, integrated management of river basins from source to the sea, and tighter control of water pollution to preserve biological diversity and the environment. It is also looking at alternative sources of water and encouraging water recycling and reuse, applications of new technologies that can reduce water demands and encouraging water savings while preparing the country to overcome the negative effects of climate change. In view of the above aspirations of the country, the approach taken in this Volume and reiterated in every State Report from Volumes 7 to 20, is to examine the various components of the environment affecting and are affected by water resource use, with a focus on environmental conservation. It follows an integrated environmental framework of providing the background information for setting the scene for the study, examining the environmental requirements and limiting factors, and ways to conserve water resources in the environment. ra 6582 NRE WAV Easesameriecon 2 Ooo Bt BRET Review of the National Water Resources (2000 - 2050) and Fo:mulation of National Water Resources Policy ~ Volume 4 Environmental Study Final Report, August 2011 ‘OBJECTIVE AND APPROACH, ~ Ranhill Consulting Sdn Bhd ~ This Volume devotes a considerable overview of the current water resource scenario in relation to the environment and the factors that will have an effect on water resources such as size and distribution of population, landuse and socio-cultural activities. These will be profiled in detail at the State reports insofar as they impinge on the competing use of water in the environment. (On the section of environmental requirements and limiting factors, the Study has reviewed the support and provisioning of ecosystem services that benefit water users, such as forests, which are water source areas; and lakes, wetlands and groundwater as natural water reservoirs. These same provisions, however, could easily be negated, of which water pollution will be a major limiting factor (such as discharges from aquaculture use of river water, sewage and solid waste contributions to water pollution, return flows from agricultural areas etc). Water pollution, mainly in the form of return flows and industrial wastewater, has been known to place @ very serious limitation on the usable volume of water in the river system, thus affecting not only the vulnerable aquatic ecosystem itself, but also all other beneficial uses Finally, to sustain and improve the environment, the environmental flows in the river system are considered in terms of water quality and quantity. The qualty of water provides the “net” or “real” availability of water resources, while the quantity of water is essential to sustain all water-dependent ecosystems and habitats, and sufficient water for dilution to counter water pollution. To achieve the goals of water resources and the environment, the environmental conservation protocols are included as broad guidelines for future plans of actions after this Study. ‘insane 202 NWREFWRLWSIA Ease 2 oe 2-2 REVIEW OF THE NATIONAL WATER RESOURCES STUDY (2000 - 2050) AND FORMULATION OF NATIONAL WATER RESOURCES POLICY FINAL REPORT, VOLUME 4 - ENVIRONMENTAL STUDY AUGUST 2011 SECTION 3 STRUCTURE OF THE VOLUME 3.0 STRUCTURE OF THE VOLUME STRUCTURE OF THE VOLUME Based on the above approach, Volume 4 is divided into 17 sections, The Introduction and Objective sections are followed by a number of guiding principles that provide a conceptual framework for an analysis of water requirements, water security, sustainability and environmental integrity that are summarised and integrated as the National Water Resources Vulnerability Index (NWRVI). The policy and legislative frameworks for the current NWRS (2010) are presented in Volume 2 (Water Resources Governance), and will be briefly alluded to in the various study sectors. More detailed environmental information for each of the 13 States and the three Federal Territories are presented in the State Volumes 7 to 20. ‘The nation-wide overview of environmental assets and water resources is summarised in a framework as shown below. SETTING THE SCENE ‘+ Background information © Water availability and demand ‘+ Population + Socio-cultural profile © Landuse ENVIRONMENTAL REQUIREMENTS AND LIMITING FACTORS, + Forest ecosystems © Lake and wetland ecosystem © Aquatic ecology ACTIVITIES THAT LIMIT WATER RESOURCE USE ‘+ Inland fisheries and aquaculture ‘+ Recreation and tourism + Water quality and sources of pollution + Contributions from sewage ‘+ Contributions from solid waste SUSTAINING THE ENVIRONMENT + Environmental flow + Recommendations for environmental conservation "Genera Rb £032 NIVRSTFINAL Val 4 EsssessmentSecton 3.00% 3-4 REVIEW OF THE NATIONAL WATER RESOURCES STUDY (2000 ~ 2050) AND FORMULATION OF NATIONAL WATER RESOURCES POLICY FINAL REPORT, VOLUME 4 - ENVIRONMENTAL STUDY AUGUST 2011 SECTION 4 GUIDING PRINCIPLES 40 44 42 GUIDING PRINCIPLES GUIDING PRINCIPLES ENVIRONMENTAL ASSETS The environmental assets must not be viewed as isolated or peripheral components in water resources studies and investigations, because these assets have intrinsic physical and socio- economic values. With respect to the former, for example, areas of natural beauty attract eco- tourists, mangrove swamps are juvenile habitats for commercially valuable marine life, and forests ameliorate flood flows and costly flooding. There are already in place, strong ‘commitments from the Federal and State Govemments towards environmental protection and conservation, and cognizance of these policy frameworks are necessary when determining water needs and seeking sustainable water resource management. Most of the details of these policies are provided in Volume 2. This Volume will only highlight relevant ones insofar as they will provide a better understanding on the need to conserve water resources and to sustain the environmental assets. WATER RESOURCES SECURITY For water security purposes, it is the policy of the Federal Government to protect and conserve ecosystems that require adequate water to function and to protect water supplies for the population and for all development projects. In the Tenth Malaysia Plan, itis stated that the Federal Government will introduce initiatives ‘to encourage the States to gazette forests, especially in catchment areas, as protected forests’, and that in order to protect biodiversity and habitats, the Federal Government will implement the 4.2 million ha ‘Central Forest Spine’ concept in Peninsular Malaysia, and the 6.0 million ha ‘Heart of Borneo concept in Sabah and Sarawak. These areas, which will serve as ecological linkages, biodiversity reservoirs and catchment areas with potential to be developed for tourism, will be classified as Environmentally Sensitive Areas (ESAs), where limited or no development will be permitted The Federal Government is also committed to preserving biodiversity through its 1998 ‘National Biodiversity Policy’, which is 'to conserve Malaysia's biological diversity and fo ensure that its components are utilised in a sustainable manner for the continued progress and socio-economic development of the nation’. The Federal Government has also adopted the National Forestry Policy, and a Coastal Zone Physical Plan for the protection of forests and the coastal and marine areas, respectively. The details of environmental and water resource policy statements are given in Annex 4.41 The commitment for the protection, wise use and sustainable management of the nation's environmental resources is also reflected in the Terms of Reference and Objectives for this Review Study. Conservation and river basin management are promoted and it is noted that water is seen as finite and is important to national development, the well-being of the nation, and for environmental integrity. Water security and the sustainable use of water resources are therefore considered to be of paramount importance. ‘Wigan 62 NVRSENAL Wola Eatnsrnicion 4Doe at PORTER Review ofthe National Woter Resources (2000 - 2050) and Formulation of National Water Resources Policy PRM ~ Volume 4 Environmental Study, Final Report, August 2011 GUIDING PRINCIPLES ~ Ranhil Consuling Sein Bhd ~ In terms of water resources governance, there is a strong commitment towards water sector reform as seen with the re-organisation of former water-related agencies into four new Ministries in 2004, to streamline the activities of water resource management and conservation of the environment. Nearly all the water-related activities are now groupe four major Ministries: (2) The Ministry of Natural Resources and Environment (MONRE) that looks after all natural resources including water resources; (b) The Ministry of Energy, Water and Communication (MEWC), which has since been re-organised as the Ministry of Energy, Green Technology and Water (KeTTHA) in 2009, that amongst other functions, looks after water services; (©) The Ministry of Agriculture and Agro-based Industry (MOA), with functions over water management mainly for irrigation amongst other functions; and (d) The Ministry of Housing and Local Government (KPKT), with functions over all local water enforcement functions. ‘With the new administrative set-up, there is: (2) Aseparation of utlity services and/or combination with regulatory roles (KeTTHA and MOA, MoNRE and KPKT) in the water sector; (b) Facilitation in allowing greater private sector involvement in the water utility and water-related (Ie, sewerage) services; and (c) Bringing together all the major natural resource-based agencies (land, water, mineral, forest and the environment) under one ministry to facilitate and ensure that all natural resources are planned and managed holistically With the above re-organisation, the MoNRE now piays a fundamental role in water resources management in the country, fostering an integrated approach within the framework of IWRM, as it is the custodian of Integrated Natural Resources Management (INRM), which includes land, water, forests, minerals and the environment. It has to safeguard the security of water resources in the country for all water users and this is being carried out through water conservation and sustainability approaches, with one such approach being the IWRM, a sub- set of INRM. The adoption of an IWRM approach and its sub-set of integrated river basin management (RBM) dates back to early 1990s. A series of consultation was held in 1999 and early 2000 among many and diverse stakeholders involved in the water sector, facilitated by the Malaysian Water Partnership (MyWP). The Malaysian Water Vision was formulated to support the National Vision 2020 (towards achieving a developed nation status), wherein Malaysia will conserve and manage its water resources to ensure adequate and safe water for all, including the environment. The policy statements of IWRM were thus written in the {Gane 2 NAREFWALVEA EasoearentSocion doe 4-2 Review of the National Water Resources (2000 - 2050) and Foimulation of National Weter Resources Policy Volume 4 Environmental Study, Final Report, August 2011 [GUIDING PRINCIPLES ~ Ranhil Consulting Sdn Bhd ~ 43 Third Outline Perspective Plan (OPP3) and the Eighth and Ninth Malaysia Plans. Although it is not spelt out explicitly in the Tenth Malaysia Plan, the essence is, however, implied ‘The impetus of adopting the IWRM concept is that, the approach will provide cross-sector co- ordination, reduce conflicts and inefficiencies in the management of water resources and at the same time engender equity in the distribution of water resources to all stakeholders effectively and efficiently. As water is a State matter, all the States are encouraged to establish IWRM and IRBM approaches to ensure efficient planning, effective monitoring enforcement and management of water resources based on river basins. KEY WATER RESOURCE AND ENVIRONMENTAL GOVERNANCE CONSIDERATIONS When evaluating environmental integrity and water security in the light of current water uses and practices and particularly as found in this Study when assessing new project proposals, a umber of key considerations have been considered and are addressed below. A valuable tool for assessing and prioritising water resource issues is the UNEP's Water Resources Issues Assessment Method (WRIAM). It is similar to the techniques used in RIAM (Rapid Impact Assessment Matrix) that is often used for environmental impact assessment. ‘WRIAM is objective and robust using five main criteria similar to RIAM as follows: . Importance - for example, is the area a protected place, or are endangered plant and animal species present and how they will be affected? . Magnitude of Change — what is the scale of a proposed development, and what proportion of an area or site will it affect? . Permanence — temporary or permanent? . Reversibility ~ can impacts be reversed or partially reversed? . Cumulative Character - what will be the effects of actions taken over a period of time? In addition, three other criteria will also need to be considered; . ‘Abundance ~ are species or systems abundant or scarce and how sustainable are they? . Risk - for example, what are the chances af one action or development having other consequences e.g. will the construction of dams cause channel instability downstream? . Cultural and Spiritual Assets - will a development adversely impact on communities, the cultural and spiritual assets and values? igen 50:2 NREFINALaL4EAsseaemertGelan Ae 3

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