Mengukur tahap kecekapan perkhidmatan bekalan air di kalangan negeri-negeri industri dan hubungan dengan KDNK

Water supply services in Peninsular Malaysia were initially under the authority of the Ministry of Works through the Jabatan Kerja Raya, but after Independence it was placed under the state government, namely as Jabatan Kerja Raya Negeri until it split into the Water Department, Water Supply, Corporate Companies and privatization in 1990s. Johor, Selangor, and Pulau Pinang are developed states in Malaysia which have fully privatized the water division of JKR to the private sector, namely as Johor Holdings (1994), Selangor Water Supply Company (1996), and Penang Water Supply Corporation (1999). Due to rapid population growth and municipality, as well as the demand in industrial sectors, demand for water has increased in Selangor, Johor and Pulau Pinang. Therefore, this study aimed to measure the level of efficiency between industrial states of Malaysia and to determine the relationship between GDP growth and water efficiency. Other factors that affect the level of efficiency of the state’s water operator will be analyzed. Data Envelopment Analysis (DEA) approach is used to measure technical efficiency and factors influencing the level of water efficiency over the period 2006-2017. While Tobit model will be used to determine other factors influencing the level of efficiency. The DEA score showed that the industrial states such as Johor and Selangor managed to score average 60% and 53%, respectively whereas Pulau Pinang managed to score an average of 92% over the study period. The Tobit model showed a positive relationship between GDP growth and water efficiency. Other factors such as water capacity and NRW also have an impact on water technical efficiency in Malaysia.