Investing in Water

Investing in Water

winsenlim68
Publish date: Thu, 05 May 2022, 11:02 AM

 

You can go without food for up to three weeks but would only last three to four days without water. Water is a basic human need, and it is arguably the most important resources on earth.

Shortages of water can lead to social, political, and economic disruption. Water is increasingly scarce, due to climate change, pollution, and increasing demand.

Spates of water supply issues further disrupts water availability. This highlights that in Malaysia there is still a gap for improvement in water services translating to upside potential

 

Like gold and oil, water is also a commodity. So, as with any other scarcity, the water shortage creates investment opportunities.

 

Isn’t the earth more than 70% water? Yes, but over 97% of this is saltwater. Saltwater cannot be used for drinking, crop irrigation, or most industrial uses.

This is where companies delivering clean water like Ranhill come in, from not just a social & economic perspective but also environmental as well with alternative sources of clean water an increasingly important factor

On one hand Ranhill is already a regional player with assets in Thailand & China and have invested in water reclamation technologies to solve the shortage issue.

On the other hand, Ranhill as one of Malaysia most efficient water operators is well placed to spearhead SPAN’s effort to achieve the national Non-Revenue Water target of 25% by 2025 via pipe rehabilitation programmes.

 

These 2-pronged edge enables Ranhill to contribute massively to cater to the expected hike in water consumption as we prepare to welcome 2 million visitors over the next 9 months in the endemic phase

Ranhill is also well placed to gain from the following Budget 2022 allocations:

  • RM382 million for rural and alternative water supply
  • Tax incentives for the purchase of green assets and green services that are eligible for Rainwater Collection and Reuse System Projects.
  • The federal government provides funding for NRW works for state water operators with lower than 40% NRW level. This should encourage the water operators to undertake the much needed works to reduce NRW. These states are Johor, Melaka, Selangor, Perak, Penang and Terengganu.
  • Rural water and electricity supply (RM34.3 million)
  • Increase of RM5.2 billion and RM4.6 billion for Sabah & Sarawak development respectively, covering infrastructure projects including water & electricity
  • RM485 million for Rural electricity supply – 2,100 homes (including Sabah & Sarawak)

 

 

 

 

 

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