GEORGE TOWN: Penang is seeking a RM2 billion federal grant to fund the water treatment and distribution components of the Perak-Penang Water Transfer Scheme.
Chief Minister Chow Kon Yeow said federal funding was vital as the inter-state project was a strategic national investment that would benefit economic growth and public welfare.
"Based on the engineering assessment by the Penang Water Supply Corporation (PBAPP), the total project cost is estimated at RM3.5 billion, comprising RM1.5 billion for raw water development in Perak and RM2 billion for water treatment and distribution components in Penang," he said during the debate on the Supply Bill 2027 in the Dewan Rakyat today.
Chow, who is also Batu Kawan MP, said a sudden rise in utility costs, particularly water tariffs, could affect Penang's and Malaysia's attractiveness to investors compared with neighbouring countries.
"This project should not be viewed merely as an inter-state infrastructure project, but rather as a national investment that requires federal support and funding for the benefit of the economy and the nation's overall well-being," he added.
Penang recently signed a conditional agreement to buy treated water from Perak to secure its water supply from 2032 to 2072.
PBAPP signed the conditional Bulk Water Supply Agreement with Prasarana Air dan Irigasi Perak Sdn Bhd under the Perak-Penang Water Project.
At the closing ceremony of the northern region Madani Rakyat 2024 programme, Prime Minister Datuk Seri Anwar Ibrahim announced that Sultan Nazrin Shah and the Perak government had agreed to supply treated water to Penang.
The federal-led project will channel water through the Kerian Integrated Green Industrial Park to Seberang Prai, with the first phase targeting Nibong Tebal and Sungai Bakap.
The agreement is a key component of the Penang Water Supply Initiative 2050, an overarching strategy proposed following a 2009 master plan study commissioned by PBAPP.
Penang's daily water consumption reached 865 million litres last year and is projected to rise to at least 1,162 million litres by 2032, driven by industrial expansion and residential development.
The scheme will provide a second major water source from the south to complement Sungai Muda in the north and help safeguard the state's supply during severe dry spells beyond 2030.
Chow also sought federal support to establish the Penang Technology Financial Centre (PTFC), with the aim of positioning the state as the National Technology Finance Hub.
Following the announcement of the 2027 Budget, he submitted six proposals to the federal government to advance the initiative.
They include identifying and mobilising existing public capital, establishing a joint federal-state working group, setting up the Penang Technology Finance Facilitation Centre, bringing federal agencies to Penang, developing a consolidated incentive package and implementing measures to attract specialised talent.
The PTFC aims to advance existing federal and state policy objectives through targeted technology-finance offerings.
The hub is projected to contribute RM12.1 billion to Malaysia's gross domestic product and support more than 71,000 jobs over 15 years.
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