Malaysia Advances Sustainable Water Management through Multiple Agreements of Reclaimed Water Supply
Malaysia marks a significant milestone towards sustainable water management and digital transformation wit the signing of three agreements that mark the first integrated reclaimed water supply chain in Klang Valley’s data centre operation.
The signing ceremony, witnessed by YAB Datuk Amar Haji Fadillah bin Yusof, Deputy Prime Minister and Minister of Energy Transition and Water Transformation (PETRA) , and YAB Dato’ Seri Amirudin Shari, Chief Minister of Selangor, and Dr. Saji PK, Director for Data Centre Operation, AWS Asia Pacific, Japan and China signifies a major milestone in advancing Malaysia’s circular water economy and sustainable digital infrastructure agenda.
Three Agreements for a Complete Reclaimed Water Ecosystem
The parties involved are:
- Air Selangor entered into an industrial reclaimed water supply agreement with Amazon Web Services (AWS) – marking the first use of reclaimed water in Klang Valley data centre operations.
- CWR and Air Selangor Sdn. Bhd. formalised a bulk water supply agreement, ensuring the efficient production and supply of reclaimed water through water reclamation plant.
- Indah Water Konsortium Sdn. Bhd. and Central Water Reclamation Sdn. Bhd (CWR) (a joint venture company between Air Selangor and IWK) signed a bulk treated effluent supply agreement, enabling the supply of treated effluent to be further processed into reclaimed water.
Public-Private Partnership Driving Sustainable Growth
In his keynote address, YAB Datuk Amar Haji Fadillah commented the collaboration between federal and state governments, utilities and industry players as transformative, citing how federal vision and state execution can produce tangible results for Malaysian and industries alike. He further emphasised that this partnership is in line with PETRA’s commitment under Water Sector Transformation 2040 (AIR 2040) by treating treated effluent as a renewable asset in strengthening Malaysia’s water resource management.
PETRA recognised AWS’s valuable contribution in advancing national sustainability objectives through strategic collaboration with strategic stakeholders. On the other hand, it showcases how public-private partnerships can deliver sustainable, forward-looking solutions that directly support Malaysia’s development goals.
To ensure Malaysia’s energy and water transitions advance in a coordinated, efficient and truly sustainable manner, PETRA is currently refining the legal and policy framework to encourage broader adoption of reclaimed water. In addition, PETRA extends structured pathways for industry including data centers and other strategic sectors to procure green electricity through mechanisms such as the Corporate Renewable Energy Supply Scheme (CRESS), Green Electricity Tariff (GET) and rooftop solar initiatives under Self-Consumption scheme.
Malaysia’s Model for Sustainable Water and Energy Transition
This initiative supports Malaysia’s MADANI Economy vision by linking industrial growth and sustainability. PETRA works to connect wastewater management with industry need, boosting water security and the circular economy.