Water to be sold to Penang only if Perak has surplus, says MB

Perak's Chief Minister Saarani Mohamad has stated that the state will only entertain the idea of selling treated water to Penang if there is an abundance of supply. Speaking on the upcoming tabling of the 2027 budget, Saarani expressed optimism that the federal government would consider allocating funds to finance a water transfer project from the Perak River to Bukit Merah Lake, with implementation planned for the following year, according to Bernama.

The project aims to meet the requirements of the Kerian Integrated Green Industrial Park (KIGIP) and stimulate growth in northern Perak, while also addressing the challenges faced by farmers during the dry season. Saarani clarified that the process would begin with the realization of the project, and any subsequent consideration of selling water to Penang would hinge on the availability of surplus water.

In July, Perak and Penang had signed a conditional bulk water supply agreement, guaranteeing Penang a consistent water supply for the next 40 years, starting from 2032. Under the agreement, the Penang Water Supply Corporation would pay an annual capacity charge of RM210 million for infrastructure development investments, along with a treated water charge of RM1.70 per cubic metre (1,000 litres), subject to annual review. The 2027 budget is set to be presented on October 9.