Resident Coordinator's speech: FLOWS 2024-Future leaders of Water Sustainability

Yang Amat Berhormat Dato’ Sri Haji Fadillah Bin Haji Yusof, Deputy Prime Minister & Minister of Energy Transition & Water Transformation

Yang Berhormat Puan Michelle Ng Mei Sze, State Assemblywoman for Subang Jaya and Chairwomen, Selangor Water Resource Management

Yang Berusaha Tuan Charles Santiago, Chairman of National Water Service Commission (SPAN)

Yang Berusaha Dr. Ir. Ts. Tn. Hj. Mohmad Asari Daud, President of the Malaysian Water Association (MWA)

Yang Berusaha Ir. Zulkiflee Omar, Chief Executive Officer of Pengurusan Aset Air Berhad (PAAB)

Mr Faroze Nadar, Executive Director, UN Global Compact, Malaysia & Brunei Chapter

Introduction

It is an honor to be here this morning as I join the Global Compact’s efforts on the Forward Faster Initiative.  

It is apt that this event (FLOWS 2024) places emphasis on the concept of water security, and that this is understood in a broad sense – not only emphasizing water availability and quality, but also, water resilience and water equity.  

I also begin by conveying the seriousness of the ongoing global water crisis, and the very real threats we face from water scarcity, adverse environmental impacts and in turn, the threats of conflicts over water resources.

My remarks have three major parts. First, a brief stocktaking, drawing on latest SDG6 data at global, regional, and national levels.  Second, and informed by the UN’s ongoing Decade of Action on Water, I will talk about the UN’s diagnosis of the underlying causal drivers of the crisis, and what needs to be done in response.  Finally, I spell out what this means for businesses, and the vital role they can play in Malaysia.

The development importance of water 

Water is pivotal to the sustainable development agenda.  

We require water, of the right quality, to keep us healthy, to sustain our livelihoods, to grow our economies, and to protect our ecosystems.  Water resources are essential in balancing the climate and delivering needed protection from water-related disasters and water-borne diseases. 

As perhaps our most significant transboundary pooled natural resource, water positively touches all aspects of our welfare, prosperity, and living environments. It also gives rise to risks and threats of adverse environmental events and disasters, and potentially also, to conflicts between communities and nations. 

Access to clean and safe water and sanitation is a human right, recognized as such by the United Nations General Assembly in July 2010. It is also central among the 17 Sustainable Development Goals. If we fail on SDG6, we will likely fail on all of the SDGs. 

Today 1.1 billion people worldwide still lack access to water, and this is intimately linked to poverty, health, and nutrition. 

• There is a clear geographic dimension – with major inequities between and within countries.
• There is a gender dimension, with global data showing that girls and women spend 200 million hours a day collecting water. 
• There is also an environment and climate dimension, as global data now suggest that some nine out of 10 climate events are water related.

Review of SDG6 and related SDG performance – global, regional, national levels 

This provides a segue to an update on progress using SDG data, at the halfway point to 2030. I do this at the global level; regionally, for Asia-Pacific and ASEAN; and for Malaysia. 

At the global level, based on the Secretary General’s 2023 SDG Progress Report, the position on SDG 6 is very problematic. None of the 8 targets within this goal are assessed as being on track. Around 35% show deterioration on the 2015 base. Absent of action, by 2030, demand is expected to outstrip supply by 40%, and an estimated 1.6 billion people will lack access to safe water.

Looking outside SDG 6 to those goals most related to water we also see considerable challenges, most notably SDG13 on climate change, SDG1 on poverty and SDG2 on food and hunger.  

For Asia-Pacific, progress on SDG6 is insufficient, and we are behind where we need to be. This is the case for both for the wider Asia Pacific and for ASEAN. At target level, again none of the 8 targets are ranked as being on track, and a few are regressing, like water ecosystems and water management. Data availability is a major issue in many countries.

I now come to Malaysia. Noting it is difficult to provide an authoritative account as we lack an official assessment, I rely on a UN in-house exercise. 

At the headline level, and very encouragingly, the results show a considerably more positive picture. Three of the seven applicable targets appear to be on track, and these relate to water availability and quality, and sanitation.

We also note the lack of data to paint the full picture. In addition, there are important nuances.  These include the accelerated discharges of untreated industrial waste, and considerable variations in water supply and quality between and within States and territories.

This highlights the need for expansion and upgrading of Malaysia’s water infrastructure to meet new demands and to deliver equity.  

Indicators under other SDGs speak to the urgent need to address the management of surface water in light of climate change induced impacts.

UN Responses 

Water security forms a central part of the discussions at the United Nations. 

In 2018 the UN launched the Decade of Action on Water for Sustainable Development leading up to the historic UN Water Conference in March 2023. In September last year, the SDG Summit Political Declaration was a unanimous renewed commitment to the SDGs. This year includes critical milestones, notably the Summit for the Future in which global water challenges will define multilateral actions and the new Pact for the Future. 

Here’s a quick synthesis outlining five key areas for action:

First and foremost, financing. A staggering USD6.7 trillion will be needed globally by 2030 for the water sector. We need a reformed global financial architecture to deliver new levels of concessional finance to this sector, and additionally, we are seeking a better enabling environment in order to lever private capital.

Second, data and evidence-base. The UN is seeking to address chronic constraints by improving and strengthening statistical and administrative data systems, and M&E capacities. This is alongside the use of new approaches and techniques including artificial intelligence and earth observation technologies. 

Third, human resource capacity.  The water and sanitation sector typically faces severe recruitment and retention challenges. We need to invest more in education and capacity and skill building and facilitate the sharing of technical expertise. 

Fourth, innovation. Despite the wider enormous strides in tech know-how, the potential gains have yet to be fully realized by the water sector. The UN is seeking with its partners, to incentivize the transfer of and application of cutting-edge technology, and to enable the development and sharing of innovative solutions. 

Fifth, policy coherence.  Water security must be addressed in a strategic and integrated manner. For the water sector to drive development outcomes, policy thinking must not be siloized. We are advocating for joined-up policymaking and greater collaboration across sectors and regulatory jurisdictions.

Engaging businesses In Malaysia

I now come to the vital role that the private sector is able to play in helping to deliver water security in Malaysia.  

The water sector involves a number of challenges but also huge opportunities for businesses to engage, and profit from that engagement. I highlight three areas where a new level of engagement is essential.

First, managing the impacts of urbanization and economic expansion, achieving comprehensive wastewater treatment, meeting rising demands for high-quality water supply, addressing disparities in water access in peripheral and remote regions, and enhancing surface drainage management in the wake of recent weather events and flooding.

Each of these priorities is capital hungry. The public budget is fundamentally constrained, so it is vital that public and private sectors jointly explore the options offered by new PPP and blended finance models.

The second area focuses on optimizing business operations, including both water consumption and production activities, which utilize water inputs and generate wastewater. This aims to promote water conservation and minimize pollution. Businesses should prioritize efficient and eco-friendly processes, benefiting both corporate responsibility and financial performance. Implementing circular economy principles and water-saving technologies can lead to substantial cost savings. Moreover, adopting greener practices can enhance market competitiveness and improve access to capital financing.

Thirdly, partnerships. Achieving ambitious water security goals necessitates collaboration between the public and private sectors, as well as between businesses and consumers. This may entail adjustments in corporate behavior and practices. Additionally, businesses can influence consumer behavior through advocacy and operational practices, leveraging their extensive Environmental, Social, and Governance (ESG) activities. Integrating water security into these existing efforts is crucial for driving positive change.

I close my remarks by renewing the UN’s readiness to assist Malaysia and Malaysian businesses as essential partners in delivering a water-secure future. 

Thank you.