Penang seeks RM2bil grant for Perak-Penang water scheme

Penang is requesting a RM2 billion federal grant to support the water treatment and distribution aspects of the Perak-Penang Water Transfer Scheme. Chief Minister Chow Kon Yeow emphasized the strategic national investment nature of the project, highlighting its potential to boost economic growth and public welfare. The total project cost, as estimated by Penang Water Supply Corporation (PBAPP), is RM3.5 billion, with RM1.5 billion allocated for raw water development in Perak and RM2 billion for water treatment and distribution in Penang.

The rising utility costs, especially water tariffs, could impact Penang's and Malaysia's appeal to investors compared to neighboring countries, according to Chow, who is also the representative for Batu Kawan. The project, extending from 2032 to 2072, involves Penang purchasing treated water from Perak and was recently confirmed through a conditional agreement.

Prime Minister Anwar Ibrahim confirmed the agreement during the Madani Rakyat 2024 program, with water to be transported via the Kerian Integrated Green Industrial Park to Seberang Prai, with the first phase focusing on Nibong Tebal and Sungai Bakap. This scheme aims to provide a secondary water source to complement the Sungai Muda in the north and ensure water supply stability during prolonged dry spells beyond 2030.

Penang's daily water consumption in 2022 was 865 million liters, projected to increase to at least 1,162 million liters by 2032 due to industrial and residential development. Chow also sought federal support for establishing the Penang Technology Financial Centre (PTFC) to position Penang as the National Technology Finance Hub, with the hub projected to contribute RM12.1 billion to Malaysia's GDP and create over 71,000 jobs over 15 years.