11-07-2025
Withdraw water tariff hike, Penang MCA urges CM
GEORGE TOWN: Penangites should not have to pay more for water when the state's water company recorded a RM144.17mil profit last year, says Penang MCA.
The party wants Chief Minister Chow Kon Yeow to withdraw plans for another possible water tariff hike and use the government-owned Penang Water Supply Corporation's (PBAPP) financial performance to ease the public's struggles against the cost of living.
Chan Wooi Jin, vice-chairman of the party's election preparation and scrutiny committee said instead of delaying the possibility of another water tariff hike to next year, it should be cancelled outright.
'Why raise the water tariff again? On what grounds does the state government justify this when PBAPP's net profit last year was RM144.17mil?' Chan asked.
Chan pointed out that water tariffs were already raised in February 2024, and said it was unfair to impose another hike so soon.
'PBAPP is not short of money. It just launched a RM5bil sukuk programme to fund major projects. And yet they are still thinking of raising tariffs?'
He said PBAPP should focus on improving operational efficiency and trimming unnecessary costs instead of transferring financial pressures to consumers.
The sukuk programme, the first of its kind by a state-linked water supply operator, was announced earlier this week.
It is designed to support long-term infrastructure works such as the RM2.1bil Water Contingency Plan 2030 and the newly launched Mengkuang water treatment plant, without over reliance on bank loans or further tariff hikes.
'Water is a basic need. Any hike will hit everyone directly. The government should be finding ways to lighten the people's burden and not add to it,' he said.
He urged Chow to withdraw the proposal in full and not merely postpone it.
On Tuesday (July 8), Chow, who is also PBAPP chairman, announced that he planned to ask the federal government to delay an impending water tariff hike in Penang to at least the middle of next year, even though it would cost PBAPP RM40mil.
The National Water Services Commission (SPAN) announced on Wednesday (July 9) that as of June 30, it received applications to review water tariffs from PBAPP and operators in nine other states, which are Perlis, Kedah, Kelantan, Terengganu, Selangor, Negeri Sembilan, Melaka, Johor and Pahang.
The commission added that it was still considering the applications.
