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Penang raises water tariffs to fund infrastructure projects
🇲🇾 Malaysia /Energy & Infrastructure

Penang raises water tariffs to fund infrastructure projects

From Utusan Malaysia · () Malay

Translated from Malay, summarized and contextualized by DistantNews.

At a glance

News Sources not specified New plan
  • Penang, Malaysia, is implementing new water tariffs to fund critical infrastructure projects costing billions of ringgit.
  • The state's water operator, PBAPP, requires increased revenue to finance planned upgrades and ensure a sustainable water supply.
  • The tariff hike, effective July 1, has drawn criticism from opposition parties who argue it burdens citizens facing economic hardship.

Penang, Malaysia, is set to introduce new water tariffs starting July 1, aimed at securing sufficient funding for the state's water supply operator, Perbadanan Bekalan Air Pulau Pinang (PBAPP). The increased revenue is crucial for PBAPP to undertake extensive critical infrastructure projects, including new water treatment plants and system upgrades, which collectively involve billions of ringgit. The state's executive council chairman for Infrastructure, Transport, and Digital, Zairil Khir Johari, explained that current profits are insufficient to cover the costs of these ambitious development plans.

The profits we have now are not enough, even though the company is recording profits. We need more funds to finance all the planned projects.

— Zairil Khir JohariExplaining the need for increased revenue.

"The current profits are not enough, even though the company is recording profits. We need more funds to finance all the planned projects," Zairil stated during a press conference. He highlighted upcoming projects such as the construction of the Mengkuang Water Treatment Plant, which is already underway, and the development of two new treatment plants in Sungai Kerian. These facilities in Sungai Kerian are designed to have capacities of 80 million liters per day and 114 million liters per day, respectively, requiring substantial financial allocation.

The implementation of new water tariffs in Penang is made to ensure the state's water supply operator has adequate financial resources to implement various critical infrastructure projects involving costs of billions of ringgit.

— Zairil Khir JohariStating the purpose of the new water tariffs.

The decision to raise water tariffs, initially postponed for a year by the state government, has faced opposition. Oh Tong Keong, chairman of the Penang chapter of the Malaysian People's Party (Gerakan), criticized the move as an additional burden on the public, disregarding the current economic difficulties faced by residents. Despite the criticism, the state government maintains that the tariff adjustment is necessary to guarantee a sustainable and reliable water supply for Penang's future needs and to maintain the operational integrity of its water infrastructure.

This is another burden imposed on the people without considering the difficulties of life and the economic pressures faced by the people.

— Oh Tong KeongCriticizing the tariff hike.
DistantNews Editorial

Originally published by Utusan Malaysia in Malay. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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