Business

Scheduled water cut to cost millions in losses? Chow urges FMM to explain

Penang CM confirms that treated water transfer deal with Perak will take time to implement.

Updated 2 years ago · Published on 05 Jan 2024 4:40PM

Scheduled water cut to cost millions in losses? Chow urges FMM to explain
Penang water authority workers will be conducting two major valve replacements at the treatment plant at Sg Muda, along with upgrading at some 20 other locations on January 10. Facebook-PBAPP pic.

by Ian McIntyre

PENANG Chief Minister Chow Kon Yeow has called on the Federation of Malaysian Manufacturers (FMM) to clarify its assertion that factories and related small-and-medium-scale enterprises (SMEs) in the state will incur millions of ringgit in losses from the maximum four-day scheduled water cut from January 10.

Chow said that it is up to the FMM to clarify the figures after its northern region chairman Datuk Seri Lee Teong Li was reported to have remarked that the losses will come up to millions.

Lee was quoted by the New Straits Times as saying: "It is going to cost us losses, delay in our shipments and commitment to customers. We are staring at millions of ringgit in losses." 

The majority of the FMM members in Penang reportedly plan to cease operations for the first two days of the scheduled water cuts from January 10 until 14.

This is based on feedback received by FMM from members' factories, including the SMEs, through a survey.

They responded that they are apparently left with no choice but to temporarily halt operations as they are highly dependent on water supply for their processes and productions.

This is especially so for those involved in food production and processing, chemical industries, and factories dealing with plating, metal polishing and others.

Apart from the manufacturing sector, businesses in the services sector such as hoteliers have also lamented about the possibility of a crisis erupting from a prolonged water cut of four days.

Some 590,000 households in Penang will be affected by the scheduled disruption due to two major valve replacement works in Sg Dua, Butterworth, which will take place from next Wednesday (January 10).

The Penang Water Supply Corporation (PBAPP) has explained that the actual repair and upgrading works will only take 24 hours.

The next three days will see activity to restore normal supply and pressure to 80% of the consumers in Penang. Hence, many places will have supply again much sooner than four days.

Perak transfer to take at least 6 years

Chow also responded to a statement by Perak Mentri Besar Datuk Seri Saarani Mohamad that the treated water transfer project agreed to between Perak and Penang will likely not take off this year.

Saarani had said this is because Perak has yet to receive funding from Putrajaya to build a water treatment plant along the state border with Penang.

To this, Chow said that the deal with Perak is still on, but it may take six to eight years to realise.

Besides funding, he explained, there is the involvement of the National Water Services Commission (SPAN) to oversee this matter.

Chow said that the pending matters on Penang's part are mostly discussion and negotiation about the water tariff rates, the delivery schedule and technical aspects of the transfer.

He said this to reporters after the launch of the Penang Internet Exchange at Jen Hotel in George Town.

Earlier, state Infrastructure Executive Councillor Zairil Khir Johari said that preparations for the works on January 10 remain on track.

The main aspect is to repair the valves, and also to restore supply to at least 80% of the affected consumers within 48 to 72 hours.

The remaining fourth day is aimed at mopping up supply for localities that are at the end of the pipeline or residentials in tough terrain areas such as in the hilly parts. – The Vibes, January 5, 2024.

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