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Analysis of the Determinants Affecting the Water Resource Revenue in
Selangor
Kirthana a/p Krishnan
Supervisor: Dr. Zuraini Bt Anang
Bachelor of Economics (Natural Resources)
School of Social and Economic Development
Selangor is the most developed and the richest state in Malaysia. This development is
a challenge for water supply industry in Selangor to provide continuous water services
as well as to increase their water resource revenue. The purpose of this study is to
analyze the determinants of the water resource revenue in Selangor. In this study,
annual data was used which include dependent variable of the water resource revenue
of Selangor and independent variables of non-revenue water (NRW), billing and meter
as well as the leakage of water pipes in Selangor. The data collected is a series of time
of 20 years from 1997 to 2016. The collected data were analyzed using the estimation
method of the multiple regression test, the normality test and the correlation test. The
findings show that all the variables in the model are significant with the values of
0.001, 0.983, and 0.095. The value of the r 2 coefficient is 54.63% that reinforces the
claim that the model is good fit. In addition, NRW shows a positive and strong
correlation of 57.67% to the water revenue of Selangor compare to the other
independent variables namely billing and meter as well as the leakage of water pipes
in Selangor. Hence, the water industry in Selangor should be responsible for
implementing the water industry restructuring to improve the efficiency of water
management in the state of Selangor.
1390 | UMT UNDERGRADUATE RESEARCH DAY 2018