SHAH ALAM, Aug 13 — Pengurusan Air Selangor Sdn Bhd is projected to record its first positive operating profit this year, with Menteri Besar Dato’ Seri Amirudin Shari attributing the expected turnaround to higher tariffs, improved operational efficiency, and cost-saving measures.
The state agency is on track to achieve this based on projections through July, following a steady increase in revenue from about RM1.8 billion to RM1.9 billion in 2020 and 2021, to RM3.03 billion in 2025.
“Based on the projections up to July 2026, we estimate that for the first time, Air Selangor will record a positive profit from its overall operations.
“Profitability does not depend only on the increase in tariffs. There are several measures, including the strengthening of operations, so that we can reduce certain operating costs,” he said in his winding-up speech on the Selangor Second Plan (RS-2) during the Selangor State Legislative Assembly sitting today.
Amirudin added that Air Selangor has also reduced its non-revenue water (NRW) rate to about 27 per cent, from 36 per cent in 2017 and 2018.
The agency received about RM300 million in grants both in 2024 and 2025, which were reinvested in measures including pipe replacement and reducing NRW.
He highlighted the use of solar energy at water treatment plants (WTPs) as another cost-saving measure, as it helped reduce electricity consumption.
“If we can reduce 30 per cent to 50 per cent of the overall cost of water utilities or energy, we could save around RM100 million to RM200 million,” Amirudin said.
He noted that Air Selangor is also exploring the use of technology such as smart meters, which has helped reduce NRW in Bukit Jelutong, Shah Alam from double digits to eight per cent.
The smart meter monitoring system was developed by Air Selangor and could potentially generate additional revenue, with pilot projects already being explored in other states.
“Although the equipment can be obtained from China, Switzerland, or elsewhere, the monitoring system was developed by Air Selangor itself and is owned by Air Selangor,” Amirudin said.
The agency’s financial position is also expected to benefit from rising demand from the domestic, industrial, and commercial sectors.
As such, Air Selangor is confident that its business plan, coupled with higher tariffs and growth in customer numbers, will enable it to service its long-term debt while moving towards profitability.
“Based on the business plan we have, the tariff increase that was announced earlier and the increase in domestic, commercial and industrial units, it gives us confidence that we can not only repay debt but also record a profit,” said Amirudin
The Menteri Besar underscored that Air Selangor's expected profitability will strengthen its ability to reinvest in water infrastructure and ensure adequate supply for Selangor's future needs.
