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SPAN Drives Innovation and Regional Collaboration to Strengthen Water and Sewerage Sector in Line with 2040 Aspirations under RMK-13

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Suruhanjaya Perkhidmatan Air Negara (SPAN) today launched the SPAN Incubator Hub and organised a Regional Regulatory Dialogue in conjunction with ASIAWATER 2026. At the same time, SPAN announced that it is exploring the establishment of a Water Innovation Fund with a potential allocation of up to RM1 million in 2026, subject to the finalisation of implementation mechanisms, governance structure and priority focus areas.

This initiative was introduced at a time when the water and sewerage sector faces increasingly complex challenges, including pressure on raw water resources, the impacts of climate change, rising operational costs and the need to accelerate the adoption of new technologies to enhance the efficiency and resilience of the national water services system.

The implementation of the SPAN Incubator Hub is also aligned with the Water Sector Transformation Aspirations 2040 (AIR 2040), which is among the key strategic agendas for the national water sector under the 13th Malaysia Plan (RMK-13). AIR 2040 emphasises the need to strengthen national water security through improved operational efficiency, reduction of Non-Revenue Water (NRW), adoption of alternative water sources, sector digitalisation and strengthening sustainable and resilient industry financing models.

In line with global developments, several countries leading in water sector innovation, such as Singapore and South Korea, have developed innovation hubs and incubators to support development and accelerate the adoption of new technologies in the water services industry. This approach highlights the importance of providing a structured platform to support learning and evaluation of innovations more effectively before large-scale implementation.

The SPAN Incubator Hub is established to address this gap by providing a neutral and structured platform for:

  • Sector knowledge sharing
  • Collaborative learning between regulators, operators and industry players
  • Evidence-based technology evaluation
  • Strengthening innovation capacity in the national water services sector

Malaysia’s water services industry plays a crucial role in supporting public well-being and national economic development. Therefore, efforts to strengthen innovation and explore new technologies are increasingly important to ensure that water supply and sewerage systems remain sustainable, efficient and resilient in the long term.

The launch of the SPAN Incubator Hub took place at the Kuala Lumpur Convention Centre and was officiated by Datuk Amar Haji Fadillah bin Haji Yusof, Deputy Prime Minister and Minister of Energy Transition and Water Transformation (PETRA), together with SPAN Chairman Datuk Ir. Abdul Kadir Mohd Din.

Aligned with the AIR 2040 aspirations under RMK-13, the water and sewerage sector must move towards a more innovative, resilient and knowledge-based system. Through the SPAN Incubator Hub, we aim to provide a more structured platform to support innovation mobilisation within the sector and assist industry players in understanding, evaluating and making more evidence-based decisions in adopting technologies.

Datuk Ir. Abdul Kadir Mohd Din, SPAN Chairman

The launch also introduced two main approaches under the SPAN Incubator Hub framework, namely the SPAN Innovative & Technology Exchange (SPITE) and the Water Innovation Fund.

SPITE functions as a technology-sharing platform that brings together water operators, technology providers, research institutions and industry players to enhance exposure to emerging technologies and innovative solutions that can improve operational efficiency in the water and sewerage sector.

Meanwhile, the Water Innovation Fund is being explored as an initiative to support applied research, studies and selected demonstration projects to generate new evidence and knowledge in assessing the potential of technologies before they are considered for broader industry implementation. The fund is being developed progressively, with SPAN reviewing governance structures, priority focus areas and a potential allocation of up to RM1 million for 2026 once the implementation mechanism is finalised.

In addition to the launch of the SPAN Incubator Hub, SPAN also organised a Regional Regulatory Dialogue in conjunction with ASIAWATER 2026, bringing together representatives from regulatory agencies and industry experts from several countries to discuss current challenges and share best practices in regulating the water services industry.

Beyond supporting innovation through the SPAN Incubator Hub, this dialogue reflects SPAN’s commitment to strengthening regional collaboration. Through this platform, regulators and industry players can share experiences, understand common challenges and explore new approaches to enhance the effectiveness of water and sewerage sector regulation.

Dato’ Ahmad Faizal Abdul Rahman, SPAN Chief Executive Officer

The launch of the SPAN Incubator Hub and the organisation of the Regional Regulatory Dialogue reflect SPAN’s continued commitment to supporting the implementation of the AIR 2040 agenda under RMK-13, particularly in strengthening national water security, improving industry operational efficiency, accelerating the adoption of new technologies, and expanding strategic collaboration at the regional level.

About Suruhanjaya Perkhidmatan Air Negara (SPAN)
SPAN is a technical and economic regulatory body for the water supply and sewerage services in Peninsular Malaysia and Federal Territories of Putrajaya and Labuan. SPAN regulates the water services industry in accordance with the Water Services Industry Act 2006 (Act 655) which was enforced on 1 January 2008.

SPAN regulates all entities in the water supply and sewerage services industry including public water supply and sewerage services operators, private water supply and sewerage services operators, water supply and sewerage contractors, permit holders and suppliers of water and sewerage products.