SHAH ALAM, Jan 2 — Pengurusan Air Selangor Sdn Bhd (Air Selangor) has channelled RM4.33 billion raised through its Sukuk Kelestarian programme into water supply upgrades, pipe replacements, and sustainability projects to strengthen long-term water reliability for consumers across the state.
Air Selangor chief executive officer Adam Saffian Ghazali said that of the total, the majority has gone towards ensuring sustainable supply, with RM3.3 billion allocated to develop and upgrade water treatment facilities and expanding and maintaining the distribution network.
RM853.8 million was allotted for sustainability projects including pipe replacements, water loss reduction, building and upgrading reservoirs and residual facilities, pollution detection, and digital initiatives.
A further RM11.65 million was used for renewable energy initiatives, including on-site generation and energy efficiency improvements at operational facilities, as part of Air Selangor’s Net Zero Energy Vision 2040.
“With a utilisation rate of 96.3 per cent, Air Selangor has successfully demonstrated its disciplined fund management where every ringgit is accounted for and every allocation is tracked and measured,” Adam Saffian said in Air Selangor’s Sukuk Kelestarian 2024-2025 Impact Report.
The remaining 3.7 per cent (RM162.2 million) of unallocated proceeds was invested in shariah-compliant instruments, pending use.
Adam Saffian said the increase in Air Selangor’s sukuk limit from RM10 billion to RM20 billion has strengthened its long-term capital planning and supported anticipated capital commitments, including an annual capital expenditure of about RM1.9 billion.
“We are now able to meet long-term infrastructure requirements through valuable initiatives including our non-revenue water (NRW) reduction programmes, digital transformation efforts, climate resilience projects, and community efforts,” he said.
He also announced that RAM Ratings reaffirmed Air Selangor’s Sukuk Murabahah programme with an AAA long-term rating and a stable outlook as of August 2025.
This, he said, has boosted investor confidence and reinforced the company’s standing as a credible issuer in sustainable finance.
“As a result, we saw continued market confidence with our RM1.5 billion Sukuk Kelestarian issuance drawing an oversubscription of 2.51 times with a total order book of RM3.77 billion in October 2025.”
Meanwhile, Adam Saffian said there were no new sukuk issuances under the programme during the reporting period from October 1, 2024, to September 30, 2025, as existing proceeds were sufficient to support ongoing and planned project requirements.
