George Town, 12 November 2026 – Penang’s state government says the RM8.4 billion capacity charge in its conditional water agreement with Perak would be paid over 40 years for a treatment plant dedicated to Penang. State executive councillor Zairil Khir Johari said Penang Water Supply Corporation would pay RM210 million a year from the start of supply, rather than make an upfront contribution to build the plant.
For manufacturers and other large water users in Penang, the agreement offers a potential second major source of treated water alongside the state’s reliance on the Muda River. It is not yet a guarantee of delivery or a decision on future tariffs. The deal signed in July is conditional, and the capacity charge is separate from what the utility would pay for water it actually receives.
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