Penang is “water-stressed” and the supply from its main source, the Ulu Muda catchment area in Kedah, is being threatened by illegal logging.
The state’s water tariff, reputedly the cheapest in the world, is likely to be raised after the next general election.
Penang Water Supply Corporation (PBAPP) general manager Jaseni Maidinsa said manufacturers flocked to the state because water is sold below cost, but millions are being spent on subsidising domestic users.
“A total of RM58.9mil was spent on subsidising domestic consumers last year. We want people to pay for the actual value of water but obviously a review can only be done after the election as there are political considerations,” he said at a public seminar on the importance of the Ulu Muda forest for water security in northern peninsular Malaysia at the Penang Skills Development Corporation (PSDC) in Bayan Baru yesterday.
But he added that any increase, if imposed, would be gradual.
Describing the state as “water-stressed”, Jaseni said Penang would continue to push for Ulu Muda to be gazetted as a water catchment area.
Illegal logging is already taking place in Ulu Muda, which covers about 160,000ha, or about twice the size of Perlis.
“Penang is Ulu Muda’s most important stakeholder because 80 per cent of our supply is from the Muda River.
Jaseni said the PBAPP had protested strongly against planned logging in Ulu Muda in 2002 and 2008.
“All water catchment areas in the country including Ulu Muda must be gazetted,” he said.
Jaseni said PBAPP could not continue to invest more than it earned (from water tariffs) to reduce the percentage of water loss or non-revenue water (NRW).
“Penang’s NRW is 18.4 per cent while the national average is 36.4 per cent.
Penang does not have enough water sources so we have to make sure that we lose minimal water through efficient operations.
“It’s a vicious circle – to further reduce this loss would require big investments. It does not make sense to spend more to save cheap water – a tariff review is necessary,” he said.
