PAAB Marks Two Decades Of Water Sector Restructuring Efforts
KUALA LUMPUR, June 26 (Bernama) -- Pengurusan Aset Air Berhad (PAAB), a wholly owned company of the Minister of Finance Incorporated, marks its 20th anniversary, reflecting two decades of strategic role in transforming the national water services industry and strengthening water supply security for public well-being.
Since its establishment on May 5, 2006, PAAB has financed the takeover of water industry loans amounting to RM23.04 billion and invested RM23.84 billion in infrastructure development.
Overall, total financing and investments have reached RM46.88 billion, positioning PAAB as a key driver of the country’s public infrastructure development, it said in a statement.
As of Dec 2025, 10 states have signed the National Water Services Industry Restructuring Plan, under which several strategic projects have been completed. These include 21 water treatment plants with a combined capacity of 2,085 million litres per day, 42 storage tanks with a capacity of 783 million litres, and 3,263 kilometres of pipeline upgrades and extensions nationwide.
The PAAB 20th Anniversary Dinner at the Banquet Hall, Menara Felda Platinum Park, was officiated by Deputy Prime Minister Datuk Seri Fadillah Yusof, who is also the Energy Transition and Water Transformation Minister, last night.
Also present were Deputy Minister Datuk Seri Abdul Rahman Mohamad, ministry secretary-general Datuk Seri Mad Zaidi Mohd Karli, National Water Services Commission (SPAN) chairman Datuk Abdul Kadir Mohd Din, SPAN chief executive officer Datuk Ahmad Faizal Abdul Rahman, PAAB chairman Datuk Seri Jaseni Maidinsa, and PAAB chief executive officer Zulkiflee Omar.
In his speech, Fadillah said the issue of non-revenue water (NRW), which stands at about 40 per cent nationwide, requires coordinated and urgent action rather than waiting for long-term plans up to 2050, to ensure sustainable water supply for people and industry.
He said immediate measures are crucial as Malaysia continues to attract foreign investment in high-impact and high-growth sectors, including data centres that require stable water and energy supply.
“Ten years is still not enough to resolve non-revenue water. We are still building treatment plants, but 40 per cent of water is being lost. Coordinated action involving all federal agencies and state governments is needed now to ensure the people are not affected by supply disruptions,” he said.
Fadillah stressed that strong commitment from PAAB and SPAN in driving sustainable policy initiatives is critical to national well-being and economic growth.
He added that while planning extends to 2050, the timeline is too long and more aggressive action is required now.
At the event, Jaseni said the organisation’s mandate is to implement the National Water Services Industry Restructuring Plan through the Full Cost Recovery Roadmap by 2050.
He said this is being carried out in four phases: Migration (2008–2020), Stabilisation (2021–2030), Consolidation (2031–2040), and Full Cost Recovery (2041–2050).
He added that the RM23.84 billion capital expenditure up to Dec 2025 includes RM8.33 billion for completed projects handed over to operators, RM1.84 billion for projects under construction, and RM13.67 billion for projects in design and planning stages.
PAAB said its success is measured not only by investment value or assets delivered, but by the impact on people through more stable, clean and quality water supply.
-- BERNAMA
