Rapid urbanisation and industrialisation coupled with climate change have increased the pressure on water resources across the globe. Southeast Asian economies such as Thailand, Vietnam, the Philippines and Indonesia are already facing a huge gap in the demand and supply of water. Even major economies such as Singapore are heavily dependent on external sources to meet their water needs. This is partly due to the overexploitation of water along with the discharge of untreated industrial water directly into waterbodies. However, another major reason is inadequate water treatment infrastructure.

Southeast Asia Infrastructure takes a look at the trends across water treatment and waste management segments, key challenges faced and the way forward…

Notable trends

Municipal solid waste generation

Municipal solid waste (MSW) generation has become a major concern for Southeast Asian countries. The amount of waste has increased tremendously due to rapid urbanisation, industrialisation and population growth. The region generates around 143.27 million tonnes (mt) of waste each year.

Within the region, Indonesia generates the highest quantity of MSW. The country contributes to 45 per cent of the total waste generated in the region.  It is followed by Thailand and the Philippines with shares of 18 per cent and 10 per cent respectively. Brunei and Lao PDR generate the lowest quantities of MSW in the region.

The region generates around 0.22 kg of waste per person per day. High-income and more developed economies in the region account for most of the waste generated on a per capita basis. Organic waste accounts for the highest fraction of the total MSW in all countries except Singapore. Dry waste including plastic, paper and metals accounts for the rest.

Waste disposal

Landfills are the most common disposal method for MSW in the region. Around 59 per cent of the total waste generated in the region is disposed of at landfills. However, Singapore is an exception due to rising disposal costs caused by exhaustion of existing landfill sites and larger quantities of waste.

The other commonly adopted method for waste disposal is treatment through incineration. Around 9 per cent of the waste generated is treated through incineration. The technique is particularly common in Singapore, which generates energy by incinerating most of the country’s waste.

Although the use of composting to manage organic waste is limited, the practice is slowly picking up in the region. Open dumping and burning of waste is also common, especially in developing and low-income countries like Cambodia and Lao PDR.

Desalination

Desalination accounts for a very small portion of the overall water balance in most Southeast Asian countries. However, it is gaining traction in the region with growing population and water requirements. Singapore is spearheading the growth of the desalination market in the region. By 2060, Singapore’s water demand is expected to double with the non-domestic sector accounting for about 70 per cent. By then, the government plans to meet 85 per cent of its needs from NEWater (a brand name given to highly treated reclaimed wastewater produced by Singapore’s Public Utilities Board [PUB]) and desalination. Other countries such as Indonesia, Thailand and Malaysia are also adopting or planning to adopt this drought-proof solution to secure drinking water.

On the same lines, the Jakarta administration inaugurated seawater desalination plants on four islands in the Thousand Islands Regency in 2019 in order to deal with water scarcity on Jakarta’s outer islands. The desalination plants use the seawater reverse osmosis (SWRO) system, and are located on Payung, Pramuka, Panggang and Kelapa Dua islands. The SWRO system converts seawater into freshwater using a semi-permeable membrane and is an energy-intensive process as it involves a high pressure pump.

In response to the ongoing and future droughts plaguing the industrial sector, the Industrial Estate Authority of Thailand has plans to set up a desalination plant in the eastern economic corridor. The 300,000 cubic metre per day desalination plant will be set up through a joint venture, with investment subject to board approval. The water will be supplied to factories in the area that reduced their water consumption in the past year due to extreme drought.

Water tech start-ups

In recent years, the Association of Southeast Asian Nations (ASEAN) established itself as a leading market for technological innovations in the water treatment sector. A large number of upcoming players, especially in Singapore, have greatly impacted the water treatment infrastructure in the area through improved monitoring and maintenance. One of the major participants in the water sector is the Singapore-based company Visenti. The company was acquired by Xylem in November 2016. It has developed a number of analytics products for smart management of water networks in the country. It provides tools to efficiently monitor and predict pipe failure to the PUB, Singapore. Environsens, another Singapore-based organisation, has developed innovative technology to tackle the discharge of contaminants in the water networks. Its internet of things-enabled toxicity sensor, which provides data on a real-time basis, has been deployed across Singapore. It ensures early detection of heavy metals in the city’s sewer networks.

Focus on wastewater reuse and desalination

As water scarcity increases, interest in the reuse of treated wastewater and desalination technologies is increasing. Globally, the demand for water is expected to exceed supply by about 40 per cent in 2030. Various countries in Southeast Asia including Singapore, Indonesia, Vietnam and  Myanmar face high water stress. In such a scenario, it becomes pertinent for these countries to develop technologies for reuse and desalination of water. While the global wastewater reuse market is expected to reach $22.3 billion by 2021, the market for desalination is expected to exceed $27 billion by 2025.

Singapore has successfully adopted innovative technologies and solutions to manage its water needs. It recently set up a first-of-its-kind facility, the Keppel Marina East desalination plant, which is a large-scale dual-mode desalination plant that treats both seawater and fresh water. Countries like Malaysia, the Philippines and Thailand are also looking at adopting these technologies.

Solid waste management practices

The region’s urban population is expected to grow to 400 million by 2030. This will require significant investment in waste management to deal with increased quantities of garbage. Most of the landfills, on which the region is currently dependent for the disposal of waste are expected to reach their full capacities in the next 10 years. The countries are also expected to witness a steep rise in electricity demand. Many steps are bein taken for waste management including the setting up of waste-to energy (WtE) plants. Several WtE plants are being built in the region especially in Indonesia, Thailand and Vietnam that produce high quantities of waste.

Another emerging trend is the increase in the import of waste in the Southeast Asian countries after China banned the import of plastic waste in 2017.  The amount of plastic waste imported into the region from high-income countries has more than doubled since 2017. However, countries like Malaysia, the Philippines and Indonesia are restricting imports of plastic waste and are planning a complete ban in the future.

Technological advancements

With increased environmental regulation, climate change, ageing infrastructure and the need to improve customer service, cities are now turning to smart, data-driven solutions to improve their wastewater systems. These solutions allow operators to detect infiltration and inflow, prioritise actions, quickly respond to system failures, and apply predictive modelling. Various wastewater treatment plants (WWTPs) such as the Ulu Pandan WWTP in Singapore and Sungai Udang sewage treatment plant (STP) in Malaysia have deployed solutions to automate processes, increase energy efficiency and reduce manpower requirements. Besides, Singapore has also begun work on the world’s first integrated waste and water treatment facility, which incorporates advanced physical, biological and chemical treatment processes. The Tuas water reclamation plant will house the largest membrane bioreactor facility in the world, enabling the plant to be more energy efficient while occupying less space compared to existing water treatment plants.

Pain points

One of the major challenges affecting water utilities in the Southeast Asian developing countries is the high percentage of non-revenue water (NRW). While Malaysia has average NRW levels of 35 per cent, Indonesia has 33 per cent, Vietnam 30 per cent and Myanmar 50 per cent.

Low investment in wastewater treatment infrastructure is another challenge faced by the ASEAN countries. Further, various countries in the region have low levels of wastewater treatment capacity. Singapore, which not only treats its wastewater but also reuses it to meet the water demands, is an exception. Besides, there is a high incidence of untreated industrial wastewater being discharged into natural waterbodies, although most countries require that industrial wastewater should be treated before discharge. This is largely due to inadequate government monitoring, control and enforcement of environmental regulations.

Public-private partnership (PPP) projects have been undertaken in various countries in the sector to stimulate infrastructure development. However, the success of PPPs in the sector has enjoyed mixed success. While the success has varied across countries and projects, water and wastewater PPPs are more difficult as compared to other infrastructure sector PPPs because of the low levels of profitability in the sector and strong resistance to private involvement in water supply amongst consumers and political parties. Globally, the failure rate of water and sewerage privatisation has increased to 34 per cent in the last five years. Singapore’s PUB took over the Tuas spring desalination plant from the debt-laden Hyflux Limited in May 2019. The plant was experiencing difficulties fulfilling its obligation under the water purchase agreement since 2017.

Furthermore, Southeast Asian countries are already struggling with high volumes of waste, most of which is dumped at landfills. Many of the landfills are expected to reach their full capacity in the next decade. Apart from this, waste streams such as plastic, e-waste and healthcare present complex challenges. Open dumping and burning of waste is a common practice in developing countries as collection services are limited to big cities. Recycling is also limited to the informal sector.

Many countries lack comprehensive policies and programmes for solid waste management. Besides, a number of ministries, apart from environment, have roles in regulating waste streams, leading to disharmony and lack of co-ordination among institutions.

The way forward

The Covid-19 pandemic has severely affected economic activity across the Southeast Asian region. However, it has steered discussions towards the need to cover the infrastructure gap in the region through better water and waste management facilities. Governments have increased allocations for the provision of these essential services as there is an urgent need to adopt the green path of recovery.

Population growth and rapid urbanisation in SEA countries has made the management of the water and waste sectors even more challenging. Managing growing piles of waste in big cities with limited land resources is expected to pose further challenges. Going ahead, these countries need to increase investments in developing water treatment and waste management infrastructure. Furthermore, ASEAN countries can go a long way in bridging the infrastructure gap by harnessing the benefits of PPPs through development of long-term strategies, proper incentivisation and ensuring flexibility and political will to bear costs and guarantee risks.