UKM-GRADUATE SCHOOL OF BUSINESS

MASTER OF BUSINESS ADMINISTRATION

ZCMB6142
ORGANIZATIONAL DEVELOPMENT AND CHANGE MANAGEMENT

SEMESTER 1
ACADEMIC SESSION 2023/2024
SET 3

GROUP ASSIGNMENT

GROUP 1

AFDHAL BIN ZULAMIR HASSANI P121569

HOH YEE MOON P120612
JONATHAN IRUTHEEYANATHAN P120699
MOHD HAZRUL AIZAT BIN ZULKEPLI P125948
MUHAMMAD FIRDAUS BIN FIRUZ P124850
MUHAMMAD RASHIDUL AMIN BIN MUHAMAD RAPINGI P126124
SHUKRA BINTI MOHD NADZAR P125944

SUBMITTED TO
ASSOC. PROF. DR. LOKHMAN HAKIM OSMAN
Introduction

Water sustainability has become a critical concern as the world grapples with the
alarming statistics surrounding water resources. According to BBC, less than 1% of the
Earth's water is available for human consumption, highlighting the precious and finite nature
of this essential resource. The escalating global population, which has doubled over the past
40 years, has resulted in a fourfold increase in water usage (source: BBC). This surge in
demand raises concerns about the sustainability of our water resources, particularly as
projections indicate that by 2030, global water requirements may surpass sustainable use by
40%, placing nearly half of the world's population under severe water stress (source: OECD).
Furthermore, the United Nations (2023) predicts that by 2050, one in five developing
countries will confront water shortages, intensifying the need for comprehensive water
management strategies.

Issues related to water, such as scarcity, stress, and the impact of population growth
and climate change, compound the challenge of ensuring water sustainability. Water scarcity
arises when demand exceeds the available supply, leading to detrimental effects on
ecosystems and human communities. As the global population continues to grow and
urbanize, the strain on water resources intensifies, exacerbating water stress in various
regions. Climate change further complicates the issue, with altered precipitation patterns,
rising temperatures, and extreme weather events disrupting traditional water sources and
exacerbating scarcity concerns. These interconnected challenges demand a multifaceted
approach to address water sustainability, incorporating conservation, efficient water use, and
adaptation strategies to mitigate the impacts of a changing climate.

To address the impending water crisis, concerted efforts are needed at local, national,
and global levels. Initiatives focusing on water conservation, efficient agricultural practices,
and the development of sustainable water infrastructure can contribute to alleviating stress on
water resources. Collaborative international efforts, informed by the sobering statistics and
projections, are crucial to developing comprehensive strategies that prioritize equitable access
to water while safeguarding the environment. The urgency of these actions cannot be
overstated, as they are essential for securing a future where water is accessible, sustainable,
and sufficient to meet the needs of a growing global population.
Focus of the Issues Water Crisis

On a global scale, efficient water management is crucial for addressing the challenges
of evolving business environments within the context of global change management.
Emphasizing the pressing issue of worldwide water scarcity has garnered significant attention
in recent years due to challenges in securing dependable water sources. This issue arises from
a mix of natural influences and human actions, impacting various regions around the world
such as the United States, India, Africa, and many other countries for several reasons (Alan,
Prakash & Ronald, 2022).

The Southwest in the United States faces severe water stress despite abundant
resources, due to dry weather and increasing demand. Urban areas with growing populations
experience heightened pressure on water supply, necessitating robust management strategies.
Similarly, India is ranked 13th for overall water stress and grapples with a severe water crisis
driven by high population density, agricultural demands, and inadequate water management
infrastructure. According to Patel & Singh (2019), this situation poses significant challenges
for the country. According to Mukherji et al. (2019), the overdrawn groundwater for irrigation
further contributes to the crisis, with declining groundwater tables.

Furthermore, African countries, particularly those in Sub-Saharan Africa, are facing

severe shortages of water because of climate change and limited access to water resources.
According to Makaya et al. (2023), this issue is especially intense in certain locations, such as
South Africa's Western Cape, which experiences significant levels of stress despite being in a
moderately water-stressed region. These geographical inequalities highlight the critical need
for an integrated, region-specific strategy to sustainable water management.

The increasing demand for water is influenced by several factors that highlight the
necessity for comprehensive strategies to guarantee sustainable water usage. According to
United Nations, (2023), one of the significant factors contributing to this rising demand is
population growth, which causes substantial strain on current water resources and directly
corresponds to an increased requirement for water resources to meet the expanding needs of
households, agriculture, and industries. This demographic pressure emphasizes the
significance of effective water management practices to sustain a balance between supply and
demand while ensuring sustainable usage. As the global population continues to grow, the
demand for water for domestic use, agriculture, and industry also increases. This puts greater
pressure on our planet's limited water resources (World Health Organization, 2024).

In addition, urbanization and economic growth are among the factors driving up water
consumption. The rapid expansion of metropolitan areas leads to a significant surge in water
usage, straining existing resources. As economies progress, there is an increased need for
water, highlighting the significance of comprehensive water management strategies that can
adapt to the evolving requirements of urbanized areas. With the growth of urban areas and
development of various industries, there is mounting pressure on water resources, raising
serious concerns about sustainability (Choi, et al., 2023).

Moreover, climate change contributes to the issues of water management. Changes in

precipitation patterns, such as increasing rainfall intensity and prolonged dry periods, as well
as the effects of rising temperatures, have a direct impact on water availability and
distribution. Rising temperatures increase evaporation rates from rivers, lakes, and reservoirs,
affecting surface water levels and potentially leading to more frequent low-flow conditions.
Adapting to climate-induced changes requires proactive water management measures that
enable resilience in the face of unpredictable environmental shifts and long-term
sustainability (IPCC, 2022).

Another factor is industrial development, a crucial factor in boosting the economy,

also has a notable impact on the demand for water. Industrial operations require substantial
amounts of water, placing additional pressure on already limited resources. According to
UNESCO (2023), Meeting industrial water requirements while safeguarding ecological
harmony calls for creative approaches to managing water that emphasize effectiveness and
conservation. As industries continue to grow and diversify, strategic water management
approaches become increasingly imperative for sustainable development.

Thus, effective global water management is necessary for addressing complex

business difficulties and encouraging organisational development in emerging economies.
Strategies must consider the specific challenges faced by regions such as the United States,
India, and Africa. Population growth, urbanisation, climate change, and industrialization are
all key factors when developing successful water management systems. According to Choi, et
al. (2023), organisations may help to promote sustainable water usage and develop resilience
in the face of escalating environmental issues by incorporating these elements into
organisational development and change management strategies, as well as having a positive
impact on society.

Reasons to Address the Issues

Water scarcity impacts more than 40 percent of community in the world, and more
countries are experiencing water stress. At least one in the four people is expected to suffer
recurring water shortage by 2050. The United Nations has recognized the importance to
address the issue related to water scarcity through its Sustainable Development Goal 6 on
clean water and sanitation to safeguard drinking water and emphasis on the sustainable
management on water resources, ecosystem and wastewater (United Nations, 2023).

Human Survival
Water is fundamental necessity for life. As the global population continues to grow,
finding solution to ensure access to clean and sufficient water is essential for survival and
well-bring of individuals. Our health can be jeopardized without an adequate water supply.
Water is important to keep us hydrating to maintain bodily functions and regular body
temperature, and subsequently individuals suffer from dehydration, malnutrition and fatal in
the extreme cases without a consistent intake of clean water.

In addition, clean water is crucial for personal hygiene practices such as washing
hands, bathing and maintaining clean living environment. Proper sanitation, facilitated by
adequate water resources, supports to avoid the spread of waterborne diseases that could
devastating impact public health. On the other hand, contaminated water resources lead to
outbreaks of diseases including cholera, typhoid fever, and water-borne diseases (World
Wildlife Fund, 2024).

Socioeconomic Impacts
Agriculture is one of the major water consumption industries as crops require
consistent and sufficient water supply for growth. Water scarcity reduce the crop yields, and
consequently impact the global food security and threaten the communities rely on
agriculture for sustenance and livelihood (Qureshi et al., 2013). Decline in crop yield not only
increases the economic hardships on farmers but also threatens the food supply for
communities. It contributes to higher food price and makes the essential food ingredients less
affordable for consumers. Moreover, prolonged water scarcity could result in chronic food
shortages and increase vulnerability to famine.

Access to water is crucial to various industries, including as manufacturing and

energy operation, highlighting its essential role in the economic sustainability Industries rely
heavily on water for various processes, from colling system in manufacturing plants to
hydropower generation in the energy sector. Water scarcity disrupt the manufacturing
operations by increasing the production costs related to alternative water resources and
advance technologies on water conservation, and consequently diminish economic growth
(Dolan et al., 2021).

Environmental Consequences
Water scarcity exacerbates the impact of climate changes, particularly through intense
droughts. The delicate balance of precipitation pattern is disrupted as water becomes shortage
and contribute to irregular and unpredictable weather conditions. In the countries
experiencing severe water scarcity, the soil becomes parched and worsen the heatwaves to
increase the risks of wildfires (World Health Organization, 2024). The interconnected
relationship between water scarcity and climate changes creates a dangerous feedback loop
where each exacerbates the consequences posed by the other.

Water scarcity causes critical environmental risks, with consequences extending

beyond the immediate water shortage. Over-extraction of groundwater in response to water
scarcity not only exhausts the underground water reservoirs but could also lead to land
subsidence and impact the soil structure. Water shortage also result in reducing wetlands
which important to maintain environmental balance (World Wildlife Fund, 2024). Wetlands
act as buffers against flood to control and mitigate the impacts of extreme weather events. It
also contributes significantly to biodiversity by serving as vital habitats for a diverse range of
plant and animal species.
Recommendations and Implications

Recommendations

Treating low water conditions, especially in regions experiencing drought or water

scarcity, requires a combination of conservation efforts, efficient water management
practices, and potentially innovative solutions. Some strategies for treating low water
conditions are:

a. Implement techniques like drip irrigation, precision agriculture, and drought-resistant

crops in agriculture industries and address leaky irrigation systems, promote crop
diversification, and optimize water use for different crops.
b. Encourage water conservation practices like shorter showers, fixing leaks, and using
water-efficient appliances in urban areas, implementing tiered water pricing structures
that reflect water scarcity and incentivize conservation for pricing reforms and
identify and fix leaks in water distribution systems to minimize water loss for leak
detection issues and repair.
c. Water recycling and reuse by treating and reuse wastewater for industrial processes
whenever possible can be a good thing to start with besides implementing closed-loop
systems that minimize water intake and maximize wastewater reuse within the
industrial process and investing in water-efficient technologies by upgrading to
equipment and processes that use less water throughout the water supply and usage
process.
d. Rainwater harvesting is a very good approach to capture and store rainwater for later
use, reducing dependence on other water sources when it comes to supply-side
management. Treating and reusing greywater (from showers, sinks, etc.) for non-
potable purposes such as irrigation could also be a great measure in combatting this
issue. Watershed management by protecting forests, wetlands, and other natural areas
to conserve water resources and promote groundwater recharge is also very crucial
and considering desalination in coastal areas as a last resort due to its high energy
consumption will be a great help to tackle this matter.
e. Institutional and policy measures by enforcing strong water governance to establish
clear water rights frameworks, effective water management institutions, and
transparent decision-making processes is also important to tackle this issue. Investing
 in water infrastructure such as upgrade aging water treatment and distribution systems
to reduce water loss and improve efficiency and economic incentives for instance
implementing water pricing structures that reflect the true value of water and
encourage conservation will also assist in curbing this matter. Providing subsidies
and loans as financial support for farmers and industries to adopt water-saving
technologies and practices could also aid at the same time investing in research and
development on drought-resistant crops, desalination technologies, and water-efficient
practices to address this problem.

Simply put, holistic management applies to a practical, common-sense approach to

overseeing natural resources that considers economic, cultural, and ecological goals. In
essence, the whole is greater than the sum of its parts, and each facet is related to and
influences the others. Good examples of holistic management are communities that operate
sewage treatment plants while pursuing partnerships with clean energy producers to use
wastewater to fertilize algae and other biofuel crops. The crops, in turn, soak up nutrients and
purify wastewater, significantly reducing pumping and treatment costs.

While the topic of water scarcity may feel daunting, there’s a lot of hope. The future
of our planet and its water resources is not written in stone. If we come together to invest in
reducing water scarcity, we can help ensure people are able to rely on healthy water sources
for decades to come.

Implications

Implementing the recommendations outlined above would have significant

implications for water management and sustainability efforts. Firstly, prioritizing water
conservation and efficiency measures at both individual and community levels would lead to
a reduction in water wastage and increased awareness about responsible water usage
(Esmaeilishirazifard et al., 2024). This could result in tangible benefits such as decreased
strain on water sources, reduced water bills for consumers, and improved overall water
security. Additionally, adopting practices like rainwater harvesting would not only conserve
water but also contribute to groundwater recharge, thus bolstering long-term water
availability.
 Secondly, embracing integrated water resource management strategies would entail a
comprehensive approach to addressing water-related challenges. By considering the entire
water cycle, including factors such as water quality, ecosystem health, and societal needs,
communities can better safeguard their water resources for future generations (Mishra et al.,
2021). This approach fosters resilience against water scarcity and pollution while promoting
equitable access to clean water for both urban and rural populations.

Investing in research and innovation, as suggested in the recommendations, holds the

promise of transformative breakthroughs in water management. By funding initiatives
focused on developing efficient desalination technologies, sustainable irrigation methods, and
novel water-saving devices, societies can unlock new avenues for enhancing water efficiency
and resilience (Zhang & Oki, 2023). Embracing these innovations would not only optimize
water use but also drive economic growth through the creation of green technologies and
industries.

Furthermore, increasing investments in water infrastructure is essential for

modernizing aging systems and expanding access to clean water. Improved infrastructure can
enhance water supply reliability, mitigate the impacts of droughts and floods, and ensure
equitable distribution of water resources (Ward et al., 2020). However, such investments must
prioritize resilience and sustainability, incorporating nature-based solutions and green
infrastructure to minimize environmental degradation and enhance ecosystem services
(Anderson & Gough, 2022).

Finally, effective policy development and stakeholder involvement are crucial for
translating these recommendations into actionable initiatives. Governments, in collaboration
with civil society and private sector stakeholders, must enact regulations that promote
sustainable water use, protect vulnerable ecosystems, and incentivize conservation efforts
(Tong, 2020). By implementing transparent water pricing mechanisms and enforcing
regulations consistently, policymakers can encourage responsible consumption while
fostering a culture of stewardship towards water resources. Overall, the successful
implementation of these recommendations requires coordinated action across multiple sectors
and levels of governance, underpinned by a commitment to sustainability and equity.
Solutions in Malaysian Context (Agri-Industry)

In the sections earlier, we have delved into what water scarcity is all about, the factors
contributing to the scarcity, and the need to address the issue. We have also discussed viable
solutions and the implications if nothing is done to address the issue. In this section we will
attempt to will examine the localized solutions on how we can mitigate, if not eradicate, the
issue of water scarcity in Malaysia. We will first examine the transformation of agricultural
practices involving two major important crops, palm oil and paddy. We will also briefly
analyze practices for vertical farming which could replace the traditional way of growing
vegetables in Malaysia. Finally, we will also investigate the adaptations required to transform
the infrastructure and water policies in Malaysia.

Agricultural Transformation

Palm Oil
There are very mixed responses when discussing about palm oil as they are associated
with positive and mostly negative impacts. Malaysia is one the countries that are active in
palm oil cultivation making it one of the largest producers of palm oil (Johari et. al., 2020).
The palm oil industry accounted for 5% of Malaysia’s export and 36% of the country’s gross
domestic product (GDP) in the agricultural sector (Johari et. al., 2020). Palm oil accounts for
about 40% of the current global annual demand for vegetable oil used in food, animal feed
and fuel but planted oil palm covers less than 5–5.5% of the total global oil crop area due to
oil palm’s relatively high yields (Meijaard et. al., 2020). The argument against palm oil
cultivation is usually due to adverse effects of deforestation which is of concern for us as it
relates to waster scarcity. Deforestation meant that the natural water cycle is disrupted leading
to less precipitation (cloud formation) causing drought, which in turn causes drinkable water
scarcity.

It is worth to know that palm oil itself is water sustainable due to the low water
requirement and the large oil yields compared to other major oil sources. According to
Wageningen University and Research (2020), in order to produce 1 tonne of oil, oil palm
requires 0.26 ha of land, soy requires 2.0 ha of land and rapeseed requires 1.25 ha of land.
This meant that for 1 tonne of oil, oil palm require the least amount of land compared to the
other oils. While deforestation is a major problem, we should acknowledge that it is a
problem for any type of oil cultivation. In economic sense, palm oil seems the most
reasonable crop as it produces more oil with smaller deforestation rate, a lesser evil in
negative impact when compared to other oil cultivation.

Water usage in oil palm is also relatively lower when compared to other crops.
Sipayung (2023) gathered that speculations that oil palm is water greedy was first
conceptualised due to misinformation or for economic purposes. Findings by Gerbens-Leenes
et. al (2009) quoted by Sipayung (2023), compared water consumption of several crops
versus the energy produced and it was found that oil palm consumes lesser water compared to
soybean and rapeseed to produce the same amount of energy.

However, the amount of palm oil mill extract (POME) generated does have a
significant threat to the environment if no suitable treatment is done. POME wastewater when
released to streams untreated destabilizes the oxygen demand of rivers and water sources by
increasing the chemical oxygen demand (COD) and biochemical oxygen demand (BOD)
leading to the water source being not viable for life or as a drinking source.

Currently, the technologies to combine the anaerobic process and biofilm system in
bioreactors have produced a fresh idea in treatments of high strength wastewater like POME
(Mohammad et. al., 2021). Anaerobic biofilm reactor is another method for POME treatment
due to its significant advantages over the conventional biological treatments consisting of
anaerobic, aerobic and facultative pond systems (Soo et al., 2022). While at the moment,
there is no clear method of POME treatment that is environmentally safe as the technologies
employed must be combined to make it commercially viable, more studies could be directed
in Malaysia due to the sheer amount of oil palm cultivation. Malaysia has direct and indirect
interest to work on a much sustainable treatment system as palm oil is our major GDP
contributor and could potentially remove POME treatment as a contributor to water scarcity.

Paddy
Rice is a staple food for Malaysia and a defining feature of our culture and identity.
Malaysians of walks of life consume the grain daily as seen in many cultural dishes like nasi
lemak, bihun, and thosai to name a few. Rice is a staple food in Malaysia where per capita
consumption hovers at above 80 kilograms per year. It is also a source of income for about
300 000 farmers (IAEA, 2020). Therefore, it is not surprising that in 2016, we consumed 80
kilograms of rice per person (Che Omar et. al., 2019). The future of rice production which
consumes a lion’s share of water used in irrigated agriculture will therefore depend heavily on
developing and adopting technologies and practices which will use less water with highest
use efficiency (Padmanabhan, 2019).

Drip irrigation in rice is based on the principle of allowing precise amount of water to
crop root zone. This system is precise and allows slow application of water, in this method
water is used very economically. Drip irrigation allows water to plants directly to the root
zone through pipes. It saves 70% of water and increases yield up to 30% than conventional
cultivation of paddy (ToA, 2023). When paddy is continuously submerged condition there is
a chance of consumption of heavy metals by plant and Increase the arsenic in the crop which
may hazardous to human health when consumed (ToA, 2023).

Another method that may be introduced system of rice intensification (SRI) where the
method involves a labour intensive operation by selecting young seedlings and singly spacing
them in low water (Shamsiri, 2018). SRI is an agricultural innovation initi ated in 1983 in
Madagascar (Lai, 2022). Major limiting factor in utilizing SRI in Malaysia is the labor force
requirement in different farm operations such as raising of seedlings delicately in a protective
nursery, accurate transplanting of young seedlings (8 to 15 days old) at wider spacing starting
from 25 by 25cm to 50 by 50 cm, intermittent irrigation to avoid flooding during the
vegetative growth, yield levelling to distribute the limited water, and the intensive manual or
mechanical weeding. Nevertheless, if these operations could be entirely replaced by the
machine, it would be economically feasible to adopt SRI due to its high yielding potentials
and efficiency (Shamsiri, 2018).

Malaysia has developed a type of rice better known as nuclear rice. This particular
rice variety is called NMR152, and it was developed by Nuclear Malaysia in 2018 through
plant breeding techniques. This process involves irradiating the rice seeds to induce changes
in the plant genetic make-up, so scientists can select lines with desired traits and eventually
the best variety (IAEA, 2020).

Vertical Farming
Vertical farming is a new method of farming that attempts to provide a greater crop
yield per square meter of land. However, this term has been used to cover a broad range of
approaches, from personal- or community-scale vegetable and herb growing to vast
skyscrapers for commercial production of a wide range of crops. Vertical farming may utilize
aeroponics, aquaponics, deep water culture (DWC), nutrient film technique (NFT), drip
irrigation, and the ebb and flow and wicking systems

Solutions in Malaysian Context (Domestic)

Water sector in Malaysia is essentially made up of two parts: resource management

and service provision. The service provisions include water supply for the domestic, industrial
and agriculture, hydro-power, recreation purposes as well as eco-system maintenance. The
water resources needed for these services are drawn from the intertwining natural systems of
rivers, lakes, aquifers, wetlands, and coastal reaches (Zakaria, 2011). Both of these scopes are
of equal importance to be carefully managed and planned because they are symbiotic in
nature, i.e we cannot produce treated water if there is no reliable raw water resource in the
first place and there is also no use if there’s ample raw water available but we still fail to
deliver the final treated water to the public without frequent service interruption.

In the previous section we have discussed few of the solutions that can be
implemented in the context of Malaysian water industry concentrating mostly on the
agricultural activities, which is the most water-intensive industry in Malaysia when it comes
to water usage. In this section, we will look at the other part of critical water management
topic which is on potable water production for the general public and the community.

Water Treatment Plant & Infrastructure Upgrading

Malaysia is blessed for being rich in its water resources with rainwater is the main
source of water supply. Over 90% of the water required by the country is supplied by rivers
and reservoirs. Nonetheless, the nation's need for water is rising due to the recent decades'
tremendous economic expansion. In actuality, the nation's water supplies are already under
strain as a result of population expansion, rising economic activity, industrialization,
irrigation, fast urbanization, and rising living standards. The highest demand for water comes
from agriculture sector which uses approximately 76% of all available water in the country. It
was anticipated that the demand for water in the country would reach 20 billion m3 by the
year 2020 where the domestic and industrial sector is projected to be the main water user. On
the other hand, national coverage of water supply has increased from 80% of the total
population in 1990 to 95% in 2000 (Ferdoushi, 2014).

However, some parts of the country are facing water scarcity, particularly in the states
those are supporting heavy industrialization and large-scale agriculture for rice production.
Given the expected rapid pace of economic development, there is growing demand and
pressure on water resources in the country. Demand for water is particularly high in the states,
which are supporting large-scale agriculture for rice production such as Perlis, Kedah, and
Selangor and those that are heavily industrialised such as Pulau Pinang, Selangor, and the
Federal Territories (Sulaiman, 2012). Based on this data, we can see why the government
should prioritize working on the solutions required to manage water issue in our country
including the provision of adequate financial assistance to the stakeholders involved
especially in providing capital outlay for infrastructure upgrading purposes for instance. This
is evident when we can see billions of ringgit have been provided by the government through
the 12th Malaysia Plan or RMK-12 for the purpose of improving water services throughout the
country and also with the launching of Water Sector Transformation Plan 2040 lead by the
Economic Planning Unit or EPU.

Despite the efforts, we can still notice water issues are still far from being resolved
eminently particularly in two States namely Kelantan & Sabah. As such, in 2023 the
government has agreed to provide immediate financial assistance to these two states
amounting to RM800 million for the necessary remedial work. This type of assistance must
be continuously provided to ensure quality of water services in Malaysia to be improved, even
though the associated cost is high. Even the return of investment could be longer than
anticipated, we still need to allow this to ensure water supply in Malaysia will be reliable in
the long run, for water is probably the most basic needs in our daily life. Therefore regardless
of how difficult and expensive it is to address water issue in the country, all parties need to
play their part right to ensure a sustainable water management is being practiced in our
country. It is important that we continue to prioritise the conservation and management of our
water supply & resources, as to ensure the availability of safe and affordable water for
generations to come.
Non-Revenue Water (NRW)

Non-Revenue Water (NRW) is the difference between the volume of water supplied in
the water distribution system and the volume of water billed to the water consumer. A high
rate of NRW indicates poor water management because it can cause excessive water loss and
financial loss, which leads to increased expenditure to supply more water to meet a country’s
water demand. In many developing countries, high rates NRW remain a serious problem,
although the importance of reducing NRW is well-known to the water sector with The World
Bank estimated the average NRW rate in developing countries is at 35 per cent (Chee 2017),
and Malaysia is not excluded.

The Malaysian government have spent in excess of RM 2 billion from 1996 to 2010,
on reducing the country’s NRW rate. In 2013, the country’s NRW rate was still high at 36.6
per cent, with NRW rates ranging from 18 per cent to 62 per cent among all the country’s
states, with five out of 13 states recording NRW rates higher than 50 per cent (MWA, 2014).
Such high rates of NRW jeopardize Malaysia’s water security in the long-term, potentially
leading to negative effects on the country’s social (unfair water service bill), environmental
(loss of water resources), and economic well-being (revenue losses of water sector)
(Kanakoudis, 2012). On the contrary and in comparison, the rate of NRW in Germany for
instance is as low as 4%, which literally indicate how efficient they are in managing their
water services. Malaysia will then need a holistic approach and full commitment from every
stakeholder if we ever want to be near Germany as far as NRW is concerned.

To make thing worst, the household water consumption in Malaysia is relatively

higher than the average consumption elsewhere on the globe, or even the recommendation set
by the World’s Health Organization (WHO) which is supposed to be 165 liter per capita per
day. Domestic water consumption in most states in Malaysia is higher than 220 liter per capita
per day (MWA, 2014). This figure is relatively high in comparison with the other cities in
Southeast Asia: for example, Singaporeans only consume 160 liter of water per day. Therefore
with little conservation effort and high water consumption rate, coupled with the high rate of
NRW, it is risky for Malaysian to eventually face water stress if the issue is not being
eradicate urgently.
Legal & Legislation

Finally, there have been many emerging issues in the context of water resources and
supply in Malaysia. Legal constraint is one of the main issues related to water sector in
Malaysia. The country suffers from a plethora of sector-based water laws, both at federal and
state levels, and from the lack of a comprehensive water law (Rahman, 2009). At present,
many of the laws that are implemented by the many government entities that deal with water
are outdated, redundant, or unclear. Water legislation is contained under these laws. This
legislation on diversified water resources and supply focuses on specific features that are
difficult to be effectively implemented since they are closely tied to the responsibilities of the
various government entities. One example, perhaps a well known one, on the disintegration of
water services in Malaysia is on the provision of potable water supply versus the management
of sewerage system or wastewater. We know that these two scopes are being overseen by
different entities whereas in developed countries mostly they will combine the two so that a
better and a more integrated approach can be deployed to run the operation. Waste water can
be reclaimed to become the raw water resources required to produce clean potable water but
this is easier to be done if the same entity is in charge of the overall operation.

The other pertaining issue on policy level is on the rate of water tariff being charged to
the consumers. In Malaysia, raising water tariffs is a politically sensitive issue. In Penang,
domestic water tariff costs only 0.35 Malaysian Ringgit which is equal to 0.08 US cents for
the first 40,000 liter; in Perlis, the domestic water tariff costs 0.59 Malaysian which is equal
to 0.14 US cent for the first 40,000 liter of water. With such low water tariffs, the public has
no incentive to conserve water and the water service providers have no money to carry out
more water‐related and NRW reduction projects. Importantly, at present the structure of water
tariffs in Malaysia’s water sector is not based on full cost recovery, i.e., the revenue collected
by the water service industry can barely cover total operating expenditures.

In order to achieve long‐term water sustainability, the current water tariff structure of
Malaysia’s water sector needs to be revised. Look at how the Europeans charge the consumer
where some countries charge water even higher than what the charge people for petrol and
diesel. Moreover, water conservation has not been practiced by Malaysians, as domestic water
consumption is very high as compared to the recommended amount by WHO (Chee, 2017).
Of course the topic of tariff hike will not be popular among the consumers, but by having the
right strategies and proper communication plan, it is not impossible to implement it. After all,
this is one of the immediate action plan required to save the industry and making sure that the
coming generations will have access to clean and adequate water supply better than what we
currently have.

Conclusion

In conclusion, addressing the pressing issues of water scarcity and ensuring sustainability
necessitates a comprehensive and collaborative approach. As we confront the alarming
statistics and projections indicating a growing water crisis, it is imperative that nations and
communities adopt proactive measures to safeguard this vital resource for future generations.
A multi-faceted strategy that combines water conservation and efficiency measures,
integrated water resource management, research and innovation, investment in infrastructure,
and improved policy development & involvement is essential to mitigate the impacts of water
stress and scarcity.

Water conservation and efficiency measures play a pivotal role in alleviating pressure on
water resources. Encouraging responsible water use in households, industries, and agriculture
can significantly reduce demand. Implementing innovative technologies and practices, such
as efficient irrigation systems and water-saving appliances, can contribute to sustainable
water management. additionally, adopting integrated water resource management ensures a
holistic approach that considers the entire water cycle, promoting the efficient and equitable
use of water resources.

Research and innovation are crucial components in developing sustainable solutions to water-
related challenges. Investing in scientific research and technological advancements can lead
to breakthroughs in water purification, desalination, and efficient water use technologies.
Furthermore, investment in infrastructure is vital for building resilient water systems.
Upgrading water treatment plants, maintaining distribution networks, and implementing water
storage solutions are key steps in enhancing water infrastructure and ensuring reliable access
to clean water.

In the Malaysian context, specific attention should be given to sectors like palm oil, rice
paddy, and NRW. Developing and implementing water sustainability management practices in
these sectors can have a significant impact. Upgrading water treatment plants and reducing
non-revenue water losses are critical steps in improving water supply efficiency.
Policymakers must play a proactive role by devising and enforcing policies that promote
sustainable water practices. Public involvement and awareness are equally important to foster
a collective responsibility towards water conservation. By embracing these strategies and
tailoring them to the unique challenges faced in Malaysia, the nation can make significant
strides towards ensuring water sustainability for current and future generations.
REFERENCES

Alan C. Lewis, C. Prakash Khedun & Ronald A. Kaiser. (2022). Assessing Residential
Outdoor Water Conservation Potential Using Landscape Water Budgets. ASCE Library.
Journal of Water Resources Planning and Management. Volume 148, Issue 6
Anderson, V., & Gough, W. A. (2022). Enabling nature-based solutions to build back better
—an environmental regulatory impact analysis of Green Infrastructure in Ontario,
Canada. Buildings, 12(1), 61. https://doi.org/10.3390/buildings12010061
Che Omar, S., Tumin, S. A., & Ahmad Shaharudin, A. A. (2019). The status of the paddy and
rice industry in Malaysia. Khazanah Research Institute.
https://www.krinstitute.org/Publications-@-
The_Status_of_the_Paddy_and_Rice_Industry_in_Malaysia.aspx
Chee H. L, Ngai W.C, and Ranjan R (2017). Understanding Public Perception of and
Participation in Non-Revenue Water Management in Malaysia to Support Urban Water
Policy.Water 2017, 9, 26 MDPI.
Choi, Seo Hyung, Shin, Eunher, Kim, Dongkyun, Song, Youngseok, Zandaryaa, Sarantuyaa,
Makarigakis, Alexandros K., Kim, Ji-youn, Sohn, Okjoo, Clench, Callum, Trudeau,
Mary. (2023). Water security and cities: integrated urban water management.
UNESCO, International Centre for Water Security and Sustainable Management.
Cornell University. (n.d.). SRI International Network and Resources Center. System of Rice
Intensification - Malaysia.
http://sri.ciifad.cornell.edu/countries/malaysia/index.html#:~:text=According%20to%2
0WWF%2DMalaysia%2C%20the,compared%20to%20conventional%20planting%20m
ethods.
Doran, F., Lamontagne, J., Link, R., Hejazi, M., Reed, P. Edmonds, J. (2021). Evaluating the
economic impact of water scarcity in a changing world. Nature Communication, 12.
https://doi.org/10.1038/s41467-021-22194-0
Esmaeilishirazifard, N., Ekhtiari, M., Nikkar, M., & Fattahi, K. (2024). Investigating the
impact of technical, economic, and social behavioral saving strategies on domestic
water-saving consumption patterns in Shiraz. Cleaner and Responsible Consumption,
12, 100167. https://doi.org/10.1016/j.clrc.2023.100167
Ferdoushi A, Chamhuri S, and Rawshan A. B, (2014) Water resources in Malaysia: Issues and
challenges Journal of Food, Agriculture & Environment Vol.12 (2): 1 1 0 0 - 1 1 0 4 . 2
0 1 4.
IAEA. (2020) Malaysia’s nuclear agency and partners bring improved rice variety to
country’s farmers. https://www.iaea.org/newscenter/news/malaysias-nuclear-agency-
and-partners-bring-improved-rice-variety-to-countrys-farmers
IPCC. (2022). Climate Change 2022: Impacts, Adaptation, and Vulnerability. Contribution of
Working Group II to the Sixth Assessment Report of the Intergovernmental Panel on
Climate Change. Cambridge University Press.
Johari, M. A., Hashim, K., Mansor, N. H., & Che Jaafar, N. (2020). Soil and water
conservation practices among the independent oil palm smallholders in Betong and
Saratok, Sarawak, Malaysia. Journal of Oil Palm Research.
https://doi.org/10.21894/jopr.2020.0065
Kanakoudis, V.; Tsitsifli, S (2012). Urban water services public infrastructure projects:
Turning the high level of the nrw into an attractive financing opportunity using the pbsc
tool. Desalination Water Treat. 2012, 39, 323–335.
Lai, C. (2022). System of rice intensification: A solution to methane emissions and food
insecurity. Earth.Org. https://earth.org/system-of-rice-intensification/
Makaya, E. S., et al. (2023). Climate change impacts on water resources in sub-Saharan
Africa: A review of recent trends and future projections. Science of The Total
Environment, 146765.
Malaysian Water Association -MWA (2014). Malaysia Water Industry Guide 2014;
Malaysian Water Association: Kuala Lumpur, Malaysia.
Meijaard, E., Brooks, T. M., Carlson, K. M., Slade, E. M., Garcia-Ulloa, J., Gaveau, D. L.,
Lee, J. S., Santika, T., Juffe-Bignoli, D., Struebig, M. J., Wich, S. A., Ancrenaz, M.,
Koh, L. P., Zamira, N., Abrams, J. F., Prins, H. H., Sendashonga, C. N., Murdiyarso, D.,
Furumo, P. R., … Sheil, D. (2020). The environmental impacts of palm oil in context.
Nature Plants, 6(12), 1418–1426. https://doi.org/10.1038/s41477-020-00813-w
Mishra, B., Kumar, P., Saraswat, C., Chakraborty, S., & Gautam, A. (2021). Water security in
a changing environment: Concept, challenges, and solutions. Water, 13(4), 490.
https://doi.org/10.3390/w13040490
Mohammad, S., Baidurah, S., Kobayashi, T., Ismail, N., & Leh, C. P. (2021). Palm oil mill
effluent treatment processes—a review. Processes, 9(5), 739.
https://doi.org/10.3390/pr9050739
Mukherji, A., Molden, D., Nepal, S., & Rasheed, F. (2019). Groundwater dynamics and its
role in supporting cost-effective water policies and investments in India. Water Policy,
21(6), 1144-1162.
Padmanabhan, S. (2019). Drip irrigation technology for rice cultivation for enhancing rice
productivity and reducing water consumption. International Commission on Irrigation
& Drainage (ICID). https://www.icid.org/wif3_bali_2019/wif3_1-3_11-min.pdf
Patel, M., & Singh, A. (2019). Water scarcity in India: A comprehensive review. Ecological
Indicators, 107, 105614.
Rahman, S. A. and Khalid, R. M. (2009). Water resource management in Malaysia: Legal
issues and challenges. International Journal of Sustainable Development and Planning
4(3):258-264.
Qureshi, M. E., Hanjra, M. A., & Ward, J. (2013). Impact of water scarcity in Australia on
global food security in an era of climate change. Food Policy, 38, 136-145.
https://doi.org/10.1016/j.foodpol.2012.11.003
Sengodan, P. (2022). An overview of vertical farming: Highlighting the potential in
Malaysian high-rise buildings. Pertanika Journal of Science and Technology, 30(2),
949–981. https://doi.org/10.47836/pjst.30.2.06
Shamshiri, R. R., Ibrahim, B., Ahmad, D., Che Man, H., & Wayayok, A. (2018). An overview
of the system of rice intensification for paddy fields of Malaysia. Indian Journal of
Science and Technology, 11(18), 1–16.
https://doi.org/10.17485/ijst/2018/v11i18/104418
Sipayung, T. (2020). Oil Palm’s Water Footprint: An Evidence It Isnt a Water-wasteful
PlantT. Journal Oil Palm Water Footprint - 2023. https://palmoilina.asia/jurnal-kelapa-
sawit/oil-palm-water-footprint/
Soo, P. L., Bashir, M. J. K., & Wong, L.-P. (2022). Recent advancements in the treatment of
palm oil mill effluent (POME) using anaerobic biofilm reactors: Challenges and future
perspectives. Journal of Environmental Management, 320, 115750.
https://doi.org/10.1016/j.jenvman.2022.115750
Sulaiman, A. H. B. (2012). Water resources agenda in Malaysia. Paper presented in the
Malaysia Water Resources Management Forum, 26- 27 November 2012, Perbadanan
Putrajaya, Putrajaya, Malaysia, pp.1-61.
ToA. (2023). Drip irrigation in Rice: Rice drip irrigation. Times of Agriculture.
https://timesofagriculture.in/drip-irrigation-in-rice-a-way-to-increase-water-use-
efficiency-in-
 rice/#:~:text=Drip%20irrigation%20allows%20water%20to,also%20a%20time%20con
suming%20process.
Tong, P. S. (2020). More policies and laws, is it better for biodiversity conservation in
Malaysia? Conservation Science and Practice, 2(8). https://doi.org/10.1111/csp2.235
UNESCO (2023). Water security and cities: integrated urban water management.
International Centre for Water Security and Sustainable Management.
United Nations. (2023). Goal 6: Clean water and sanitation. Retrieved February 1, 2024,
from https://www.undp.org/sustainable-development-goals/clean-water-and- sanitation
Wageningen. (2020). New light on the sustainability of palm oil. Wageningen University and
Research. https://www.wur.nl/en/newsarticle/new-light-on-the-sustainability-of-palm-
oil.html
Ward, P. J., de Ruiter, M. C., Mård, J., Schröter, K., Van Loon, A., Veldkamp, T., von
Uexkull, N., Wanders, N., AghaKouchak, A., Arnbjerg-Nielsen, K., Capewell, L.,
Carmen Llasat, M., Day, R., Dewals, B., Di Baldassarre, G., Huning, L. S., Kreibich,
H., Mazzoleni, M., Savelli, E., … Wens, M. (2020). The need to integrate flood and
drought disaster risk reduction strategies. Water Security, 11, 100070.
https://doi.org/10.1016/j.wasec.2020.100070
World Health Organization. (2024). Drought. Retrieved February 1, 2024, from
https://www.who.int/health-topics/drought#tab=tab_1
World Wildlife Fund. (2024). Water scarcity. Retrieved February 1, 2024, from
https://www.worldwildlife.org/threats/water-scarcity
Zakaria, S., Jin, L. and Iyer, L. (2011). Water resources and climate change. Proceedings of
the National Conference on the Impact of Climate Change on Water Resources and
Their Consequences to Major Economic Sectors, 25 July 2011, Ministry of Natural
Resources and Environment (NRE), Putrajaya, Malaysia. ISBN: 978-983-9445-86- 2.
pp. 15-39.
Zhang, C.-Y., & Oki, T. (2023). Water pricing reform for sustainable water resources
management in China’s agricultural sector. Agricultural Water Management, 275,
108045. https://doi.org/10.1016/j.agwat.2022.108045