Kuala lumpur: Pengurusan Aset Air Berhad (PAAB) has committed RM22.436 billion to the development of Malaysia's national water infrastructure over the last 20 years, demonstrating a long-term dedication to enhancing the country's water services ecosystem.
According to BERNAMA News Agency, PAAB's chairman, Datuk Seri Jaseni Maidinsa, highlighted that this investment covers capital expenditure for completed, ongoing, and future projects currently in the planning and design phases. These projects involve critical assets such as water treatment plants, reservoirs, and pipeline networks across Peninsular Malaysia.
Jaseni emphasized the importance of continuous investment, particularly as climate change impacts rainfall patterns and extends dry seasons, increasing the strain on existing water storage systems. He explained that Malaysia's dams, originally designed based on British engineering standards, were intended to store water for about 100 days, which is no longer sufficient due to prolonged dry spells extending up to six months.
To address this, PAAB has advised state governments to reassess dam design criteria to expand water storage capacities to last up to six months. This adjustment would enable more rainwater capture during wet seasons, thereby mitigating flood risks and ensuring adequate water reserves during extended droughts.
While this approach is more feasible for new dam projects, Jaseni mentioned that some existing dams could also be upgraded, citing the Mengkuang Dam in Penang as a successful example of capacity enhancement. He discussed these initiatives at the PAAB Media Forum 2026, which also featured the unveiling of PAAB's 20th anniversary logo ahead of its celebration on May 5.
The forum was attended by PAAB's chief executive officer Zulkiflee Omar, MPI president Datuk Yong Soo Heong, and 70 media and public relations professionals. Established in 2006 under the Water Services Industry Act, PAAB is wholly owned by the Minister of Finance (Incorporated) and plays a pivotal role in financing and developing water infrastructure as part of the Federal Government's water industry reform agenda.
Under this framework, the Federal Government has assumed authority over water supply from participating state governments, with PAAB leasing water assets to state operators under long-term agreements. The operators remain responsible for water treatment and distribution.
Looking forward, Jaseni stated that the national water services industry would require RM110 billion over the next 50 years to achieve long-term sustainability. This is part of the National Water Services Industry Restructuring Agreement, which includes constructing new assets and upgrading existing infrastructure.
PAAB's mandate involves facilitating access to long-term financing and alleviating the financial pressure on water operators, many of whom struggle with cash flow issues due to high capital expenditure demands. Jaseni noted that these efforts are in line with the industry's transformation roadmap towards Full-Cost Recovery by 2050, aiming to ensure that water tariffs and operational structures can sustainably support operations, maintenance, and future investments.
He concluded by stating that PAAB's focus remains on increasing treated water reserve margins, reducing non-revenue water losses, and strengthening system resilience to maintain reliable and sustainable water services nationwide.