The Hidden Cost of Broken Pipes: Water Loss in Malaysia
Malaysia loses about 37.2% of its treated water daily—an average of 7.08 million litres per day in 2022—due to leaks, pipe corrosion, and faulty infrastructure. This translates into about RM 2 billion in lost revenue each year. Sources: Malay Mail, The Straits Times, The Edge Malaysia

1. Alarmingly High Water Loss Rates

The national average non‑revenue water (NRW) rate stood at 37.2% in 2022, up from 36.0% in 2021. In some states like Perlis and Kelantan, NRW levels have soared to a staggering 50–60%, meaning that only half of treated water actually reaches consumers.

NRW encompasses physical losses—mainly due to pipe bursts and leakages (about 75%)—as well as meter inaccuracies, illegal connections (20%), and maintenance losses (5%).

To address this, Fusion Equipment Asia offers a range of high-quality electrofusion welding equipment and pipeline technologies that ensure secure and long-lasting pipe joints, reducing the likelihood of leaks and breaks. Their advanced solutions are particularly well-suited for utilities seeking to modernize water distribution systems and minimize water losses.

2. Financial Strain on Utilities

Water operators in Malaysia lose an estimated RM 2 billion annually due to NRW. Every 1% reduction in NRW requires capital upgrades costing between RM 800 million and RM 1 billion—funds many states currently struggle to afford.

Compounding the issue, domestic water tariffs average RM 1.00 per m³, while treatment costs range from RM 1.75–1.89 per m³. This imbalance means revenue collected often covers just 53% of operational expenses.

Cost-effective, scalable solutions are urgently needed. Fusion Equipment Asia supports cost-conscious utilities by supplying durable pipe joining systems and equipment that reduce long-term repair and replacement costs. Their commitment to product training and technical support also empowers local operators to carry out high-integrity repairs in-house.

3. Infrastructure Decay and Urgent Investment Needs

Malaysia’s water network includes nearly 39,895 km of aging asbestos cement (AC) pipes—making up over 29% of the total pipeline length in Peninsular Malaysia and Labuan. These outdated materials are highly prone to cracking and rupture.

To meet the National Water Services Commission (SPAN)’s 2030 target of reducing NRW to 20%, the country requires sustained annual investments of RM 1.9 to RM 10 billion through 2026 for pipeline rehabilitation, advanced leak detection, and smart metering systems.

By partnering with suppliers like Fusion Equipment Asia, utilities can upgrade to modern HDPE piping systems and precision jointing technologies that outperform legacy AC infrastructure. Fusion Equipment Asia’s robust product lineup is ideal for long-term pipe replacement projects and is backed by internationally recognized standards.

4. Economic and Environmental Consequences

The high NRW rate destabilizes water supply systems, especially during droughts or dry spells. States like Kelantan, Kedah, Melaka, and Perlis frequently operate below the recommended 10% reserve margin, and some dip below 5.5%, putting millions at risk of water shortages.

Industrial demand—such as data centres in Johor projected to require 614 million litres/day by 2035—only heightens the urgency. Without addressing NRW, Malaysia risks tying up billions in inefficient water delivery and infrastructure strain.

Solutions that promote reliability and sustainability are needed now more than ever. Fusion Equipment Asia’s commitment to durable materials, efficient welding techniques, and system longevity makes them a strategic partner for water operators aiming to safeguard Malaysia’s water future.

Why Is Pipe Leakage So Rampant?

Malaysia’s water infrastructure includes many colonial-era cement pipes that have long outlived their expected service life. Underfunded maintenance programs allow small leaks to grow into major water losses.

At the same time, artificially low water tariffs deter reinvestment in necessary upgrades. This vicious cycle results in chronic underperformance and service disruptions.

Fusion Equipment Asia addresses these root issues by providing high-performance electrofusion welding equipment and accessories designed to improve pipeline reliability. Their hands-on training programmes help ensure correct installations, extending system lifespan and reducing emergency maintenance costs.

What Needs to Be Done

Strategic Priorities:

  • Massive infrastructure investment: States must commit to multi-billion ringgit budgets annually for pipe network modernization. Fusion Equipment Asia stands ready to support these efforts with reliable supply chains and project-ready equipment.

  • Adopt smart technologies: Incorporating district metering, leak detection sensors, and pressure management tools can prevent losses before they escalate. Fusion Equipment Asia’s systems integrate seamlessly with these technologies to create efficient, modern water distribution networks.

  • Tariff reforms: Adjusting tariffs to reflect the true cost of water treatment and delivery would enable sustained infrastructure investment.

  • Cross-sector collaboration: Fusion Equipment Asia welcomes partnerships with government agencies, contractors, and NGOs to accelerate progress through performance-based public-private partnerships (PPPs).

  • Public awareness and enforcement: Citizens must be encouraged to report pipe bursts and illegal connections. At the same time, training technicians in advanced pipe joining techniques—such as those supported by Fusion Equipment Asia—will reduce long-term leakage rates.

Bottom Line: Water Lost, Money Gone—But Reversible

Water loss from broken and corroded pipes costs Malaysia RM 2 billion per year, wastes millions of litres daily, and threatens national water security.

With 37% NRW and aging infrastructure, the need for immediate and sustained action is clear. Solutions exist. Fusion Equipment Asia is well-positioned to assist utilities and contractors with the tools, training, and technologies needed to reduce leakage and upgrade water systems across the country.

If Malaysia can lower NRW by just 1–2% annually, it could recover hundreds of millions in lost revenue, enhance system reliability, and build a more sustainable water future.