Serba Dinamik Annual Report 2019

111 We also ventured into the water utility industry in Malaysia and have generated a portion of our revenue from the industry. As such, development of the water utility industry would also have an impact on our business. GLOBAL As water is essential for humans and to facilitate social and economic activities, global water demand is largely influenced by the global population and economic growth. The global population is forecasted to grow from the current 7.7 billion to 9.8 billion in 2050. The growth in population and economic performance is likely to encourage development in the water utility industry. MALAYSIA We expanded our reach into the water utility industry in Malaysia through acquisition of minority interest in a water treatment plant in Terengganu. Dynamic developments in the water utility industry in Malaysia is likely to have a positive impact on our business. Over the years, water production in Malaysia has been growing in line with consumption level. Growth of water consumption recorded a CAGR of 2.3% between 2014 and 2018, slightly outpacing water production which grew at CAGR of 2.2%. In 2018, water production stood at 17,174 million litres per day ("MLD"), exceeding total consumption by approximately 6,052 MLD (Figure 4-27) . 0 4 4 . 6 WA T E R U T I L I T Y I N D U S T R Y C H A P T E R (Source: Department of Statistics). Figure 4-27: Water Production and Consumption in Malaysia Million Litre Per Day (MLD) 2018 2017 2014 2015 2016 11,122 10,737 10,174 10,445 10,786 17,174 16,652 15,768 16,159 16,799 CAGR Production Consumption 2014 - 2018 2.2% 2.3% 2016 - 2018 1.6% 1.8% Water Production Water Consumption Note: Figure above excluded Sabah and Sarawak. (Source: National Water Services Commission, SPAN) Figure 4-28: Water Supply Coverage 2020F 2014 2015 2016 Rural Malaysia Urban 99 96.7 95.8 96.3 2017 96.7 96.4 96.6 2018 96.8 96.6 96.7 Water Supply Coverage (%) 96.7 95.7 96.2 96.7 95.6 96.2 Overall, water supply coverage in Peninsular Malaysia grew from 96.1% in 2013 to 96.3% in 2016. As of 2016, water coverage in the urban and rural area stood at 96.7% and 95.8% respectively (Figure 4-28) . In the 11th Malaysia Plan, the government is aiming to achieve 99% coverage of access to clean and treated water in the rural area through the Rural Water Supply Programme. In addition, RM738 million was allocated to improve water coverage in rural areas and, RM160 million was allocated for water supply projects to support FELDA developments. As at 2017, there were 509 water treatment plants ("WTP") in Malaysia with a total design capacity of 19,706 million litres per day ("MLD"). The WTP capacity in Malaysia increased at a CAGR of 1.8% between 2013 and 2017 (Figure 4-29) .