KUALA LUMPUR – Malaysia requires an estimated RM55.5 billion to replace 39,000 kilometres of water pipes by 2050 in order to resolve persistent water disruption issues affecting numerous regions, according to Pengurusan Aset Air Berhad (PAAB) Chairman, Datuk Seri Jaseni Maidinsa.
This large-scale initiative is currently underway, supported by the Federal Government, with Cabinet approval to fast-track its progress.
“PAAB is making efforts to address the situation, with the Federal Government providing grants to back these initiatives. PAAB is the primary implementer,” said Jaseni.
He noted that water operators had previously been unable to replace the pipes due to financial difficulties faced by water companies.
The replacement will be conducted according to a priority system, with careful planning for each state’s needs.
“For some states, the programme may span ten years, others may require 15 years, while some could extend until 2050,” he explained during a media forum earlier today.
Replacing the aging infrastructure will significantly reduce water wastage, known as Non-Revenue Water (NRW), by up to 75%, as it will help curb physical losses in the public water supply system.
The initiative is currently being implemented by PAAB with the support of the Federal Government and with Cabinet approval to fast-track the process as the pipes have not been changed for the past 50 to 70 years.
Prioritisation of pipe replacements will depend on consumer density and water demand.
“If a pipe serves an industrial area with a high consumer base, it will be given higher priority, followed by areas with frequent breakages,” he said.
Currently, many of the pipes in use are Asbestos-Cement (AC) pipes, which have surpassed their 30-year lifespan. These will be replaced with steel pipes, such as mild steel, which have a longevity of 50 to 70 years.
“There are four states with high NRW due to old pipes: Kelantan, Perlis, Kedah, and Pahang,” added PAAB’s Chief Executive Officer (CEO), Zulkiflee Omar.
PAAB, established on May 5, 2006, is a government-owned entity under the Finance Ministry (MOF).
Its primary role is to oversee the development, upgrade, and financing of water infrastructure in Peninsular Malaysia and Labuan, leasing these assets to licensed water operators for maintenance and operation. – January 21, 2026