PENANG wants to speak to Kedah to find an amicable solution to the transboundary water spat which has lingered for almost a decade.
Chief Minister Chow Kon Yeow has left room for negotiations open with his counterpart from Kedah, Datuk Seri Muhammed Sanusi Md Nor.
Speaking after visiting the exhibitors at the now concluded Water Tech Asia exhibition and conference at the Penang Waterfront Convention Centre, Chow said that he believed that negotiations can resume over the matter.
Recently, he was at the national water council meeting in Putrajaya but Sanusi was not there.
Chow hopes that both Penang and Kedah can find a solution to the spat over who has rights to Sungai Muda, which flows through the transboundary section of Kedah's Kuala Muda and Penang's Kepala Batas districts.
The issue re-emerged when at the conference, Pergurusan Aset Air Berhad (PAAB) chairman Datuk Seri Jaseni Maidinsa spoke about establishing an Ulu Muda Water Basin Authority (UMBA) to sustain affordable water supply in the northern region.
He said that the concept was sent to the Prime Minister's office in 2021 but there was no progress, and he will now resubmit the proposal owing to the urgency of ensuring that the water resources up north is protected.
The Ulu Muda Basin near the Sik - Baling district in Kedah supplies majority of the residents in Perlis, Kedah and Penang.
Chow supports the concept, especially after Jaseni informed Penang that the recent water transfer deal with Perak, was still inadequate to meet the future needs of the state.
Jaseni said that if all efforts failed to secure a traditional and sustainable water supply pact under UMBA, Penang has no choice but to undertake an expensive venture of seawater desalination plants.
He shared in-depth details, citing that from the RM182 billion annual gross domestic product (GDP) which Perlis, Kedah and Penang combined to produce, there is a government tax worth RM20 billion.
A percentage of this can be recycled to fund the UMBA together with contributions from Perlis, Kedah and Penang based on their consumption from Sg Muda. This will ensure the full benefits of a circular economy.
PAAB is funding RM 1.9 billion to build two water treatment plants (WTP) in Kedah and one WTP in Penang which will treat 464 million litres per day by 2030.
UMBA will ensure there will be enough raw water from Sg Muda for these 3 projects, said Jaseni. – December 5, 2025
