The Ministry of Environment and Water (Kasa) and Economic Planning Unit (EPU) have announced plans to make Malaysia a regional water hub by 2040 and have included the Water Sector Transformation Plan 2040 (WST 2040) into the 12th Malaysia Plan (12MP). Under the WST 2040, the agencies will work on ensuring the security of water resources and the provision of safe drinking water throughout the country. Additionally, Kasa is developing an alternative funding model for the water industry, which will be implemented under the WST 2040 agenda, in collaboration with the EPU and the Malaysian Academy of Sciences.

Kasa will also be developing a comprehensive policy, strategy and action plan to address issues like recent water surge incidents and mud floods as well as unscheduled water supply disruptions.

The key water infrastructure projects will be implemented under the WST 2040 include the National Water Grid Project, Non-Revenue Reduction Project, Riverside Water Reservoir Project, Dam Upgrading Project, Flood Mitigation Plan Project and Coastal Conservation Project nationwide.