Kuala Lumpur – Pengurusan Air Selangor Sdn Bhd (Air Selangor), Malaysia’s largest water services provider has published its 2023 Sustainability Report for the fourth consecutive year with the theme of “Driving Sustainability Forward”. The report outlines Air Selangor’s initiatives and record of achievements from 1 January to 31 December 2023 highlighting its commitment to enhancing water security at regional and local levels through sustainable practices and operational efficiency. This effort aligns with its vision to be the leading water services provider in Asia by 2030.
Air Selangor has also recorded various achievements through its sustainability initiatives in 2023, which have had a positive impact on the economy, environment, and society. These achievements include:
- A significant increase in the water reserve margin by 15.34% compared to 12.02% in 2022, following an additional supply of 275 million litres per day (MLD) from Langat 2 Western Corridor starting 27 August 2023, as well as the increase in distributable capacity of 250 MLD from the Sg Rasa Water Treatment Plant starting November 2023, and is expected to increase to 17.70% by 2030,
- Lower Non-Revenue Water (NRW) rate at 27.75, a decrease of 0.01% from 2022,
- Compliance with Malaysia’s Ministry of Health Drinking Water Quality Standard at 99.93%, and 100% compliance with Quality Assurance Programme (QAP),
- Increased water supply capacity to 5,227 million liters per day, up by 110 million litres per day from 2022,
- Launch of Net Zero Energy Vision 2040 to achieve sustainable energy and zero carbon emissions, aiming to generate 1,460GWh of green electricity annually, reducing 1.1 billion kg of CO2 emissions and lowering Corporate Energy Index by 15% over 15 years,
- Overall score achievement of +4 in Net Promoter Score (NPS) for Customer Satisfaction Index, compared to +14 in 2022. NPS is a global market research metric measuring customer loyalty and satisfaction,
- Contribution totaling RM437,737 benefiting over 1,700 families, individuals, and welfare homes through the Sesama Mara Corporate Social Responsibility (CSR) initiative,
- 285,673 beneficiaries under the Skim Air Darul Ehsan (SADE), introduced by the Selangor State Government to provide clean and safe treated water to the less fortunate, with an annual government expenditure exceeding RM30 million.
These successes demonstrate Air Selangor’s commitment to ensuring efficiency and effectiveness in every endeavours, integrating sustainable operational initiatives alongside strong governance, ethical business practices, and sustainable financing.
In 2023, Air Selangor recorded RM2.82 billion in total revenue, an increase of 15.1% from RM2.45 billion recorded in the previous year. This increase is the result of various operational incomes of Air Selangor. Air Selangor will continue to invest in the long-term management and administration of water supply for its 9.3 million users in Selangor, Kuala Lumpur, and Putrajaya, where appropriate and holistic tariff adjustments can ensure continuous service quality improvement.
Air Selangor incurred CAPEX expenditure of RM0.56 billion billion in 2023, compared to RM2.68 billion in 2022, most of which was spent on the Rasau Water Supply Scheme Stage 1 project in 2022 (RM1.97 billion). After adjustment for 2023, there was an 18.8% increase in CAPEX expenditure compared to RM467.99 million in 2022 (excluding Rasau).
As of 31 December 2023, Air Selangor had issued six (6) Sustainability Sukuk, totaling RM3.13 billion since the first issuance on 29 October 2021. These Sustainability Sukuk are allocated for water supply projects, sustainable water management, and renewable energy initiatives. This includes the development of new water treatment facilities, maintenance of existing facilities, pipe replacement programmes, and the Renewable Energy for Water (RENEW) project.
Additionally, the NRW Reduction Becoming Mainstream programme launched in July 2023 reflects our proactive step in encouraging the involvement of consumers and employees of Air Selangor to reduce the rate of Non-Revenue Water (NRW). Through the Air Selangor app, consumers can now report pipe leaks, broken pipes, meter leaks, or illegal pipe installation easily and directly assist Air Selangor in our commitment to ensure sustainable and efficient water distribution management.
Air Selangor remains committed in driving all efforts to realising its aspirations to become the leading water services provider in Asia by 2030.
Air Selangor’s Sustainability Report 2023 can be accessed via https://hydrohub.airselangor.com/publication/2023-sustainability-report/.
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