PROBLEM STATEMENT

In 1994, the Federal Government awarded Indah Water Konsortium Sdn Bhd (IWK) the
concession for nationwide sewerage services which prior to that, was under the responsibility of
local authorities. Since then, IWK has taken over the sewerage services from local authorities in
all areas except the States of Kelantan, Sabah, Sarawak and the Majlis Perbandaran Johor Bahru.

Much of the water used by homes, industries, and businesses must be treated before it is released
back to the environment. A modern and efficient sewerage system is vital for the country so as to
ensure that wastewater is treated before being discharged into our rivers. If wastewater is not
properly treated, then the environment and human health can be negatively impacted. These
impacts can include harm to fish and wildlife populations, oxygen depletion, beach closures and
other restrictions on recreational water use, restrictions on fish and shellfish harvesting and
contamination of drinking water.

However, with the drastic population growth has proved to be a challenge for the sewerage system
in Malaysia. The company admit that the system need to be improved to fulfill the standard quality
of treated wastewater. With years of experience with sewerage services in the country, IWK need
to come up with efficient and effective ways to deal with fast-developing Malaysia.