The Penang government will proceed with the implementation of the revised domestic water tariff that came into effect on July 1, despite a proposal by Bagan MP Lim Guan Eng to postpone the increase for another year.
Chief Minister Chow Kon Yeow said the tariff revision, which was approved by the National Water Services Commission (SPAN), had already been deferred by almost a year from its original implementation date in August 2025.
“The implementation has already been delayed for nearly a year, so it needs to proceed as scheduled,” he told reporters during the Jelajah Ketua Menteri programme in Bagan Dalam.
Chow, who is also the State Executive Councillor for Finance, Economic Development, Land and Communications, said the tariff adjustment is necessary to ensure the long-term financial sustainability of Perbadanan Bekalan Air Pulau Pinang (PBAPP).
He said the revised tariff is expected to generate about RM20 million in additional annual revenue, which is crucial to finance the water utility’s capital expenditure programme.
“We are looking at investments of up to RM2 billion to strengthen Penang’s water security. This does not yet include the proposed water supply agreement with Perak, which will also involve investments worth billions of ringgit,” he said.
Chow added that maintaining a strong financial position is essential to preserve PBAPP’s credit rating, enabling the state water operator to issue sukuk bonds in the future should additional financing be required.
