PENANG will invest nearly RM2.9bil in 12 major water projects over the next five years to support the state’s long-term economic growth and development plans through 2032.
PBA Holdings Bhd (PBAHB) and Penang Water Supply Corporation (PBAPP) chief executive officer Datuk K. Pathmanathan said PBAPP and the Federal Government were fully committed to completing the projects by 2031 to meet a projected 34.3% increase in water demand.
He said Penang’s water consumption stood at 865 million litres per day (MLD) in 2025 and was expected to rise to at least 1,162 MLD by 2032.
“Penang’s socioeconomic growth trajectory towards 2032 cannot be compromised, held back or delayed by insufficient water supply,” he said at a press conference during the Penang Water Supply Corporation (PBAPP) 26th annual general meeting (AGM). Also present was Chief Minister Chow Kon Yeow.
Among the developments cited were ongoing projects such as Andaman Island, Penang International Commercial City, The Dew and The Skyline, future developments including Batu Kawan Industrial Park 3, Silicon Island and new housing schemes on Penang mainland as well as some expansion projects.
To meet future demand, Pathmanathan said PBAPP was implementing six Water Contingency Plan 2030 (WCP 2030) projects scheduled for completion by 2031.
Among them are the 114 MLD Mengkuang Park Water Treatment Plant (Seberang Perai Tengah), the 114 MLD Sungai Kerian Water Treatment Plant (Seberang Perai Selatan), the 136 MLD Sungai Perai Water Supply Scheme (Seberang Perai Tengah), and the 114 MLD Sungai Muda Water Treatment Plant (Seberang Perai Utara).
These four plants are expected to increase PBAPP’s maximum designed water treatment capacity by 478 MLD, while reducing Seberang Perai’s dependence on treated water from the Sungai Dua Water Treatment Plant.
The remaining two WCP 2030 projects involve major treated water pipelines linking Sungai Dua to Penang island.
One 13km pipeline will link the Sungai Dua plant to Butterworth take-off point and a 3.9km pipeline from Macallum landing point to Bukit Dumbar Reservoir and Pumping Station Complex.
In addition, PBAPP has engaged a company to develop an 80 MLD plant at Sungai Kerian under a build-operate-transfer model, expected to begin supplying water to southern Seberang Perai by 2027.
Pathmanathan said the Federal Government, through the water supply division of the Energy Transition and Water Transformation Ministry (Petra), had also pledged to complete five supporting projects between 2027 and 2029.
These include a new Sungai Muda barrage at Rantau Panjang, projects under the Mengkuang Dam Expansion Plan, raw water resource developments linked to Sungai Kerian, water intake works at Titi Kerawang and Teluk Awak in Teluk Bahang, and a comprehensive study on Penang’s future raw water resources.
Pathmanathan said the six WCP 2030 projects cost about RM2.098bil, while the five federal projects were valued at RM838mil.
Combined with the additional Sungai Kerian water treatment plant project, total investment in Penang’s water infrastructure over the next five years is estimated at about RM2.9bil.
“This multi-billion ringgit investment encapsulates the depth of the Federal Government, Penang state government and PBAPP’s commitment to ensuring sufficient water supply in Penang in the 2030s.”
Pathmanathan said the projects were critical as Penang’s water consumption was projected to increase from 865 MLD in 2025 to 1,162 MLD by 2032, driven by industrial growth and large-scale developments.
Among the key growth drivers are semiconductor and manufacturing expansions by multinational companies as well as major township and industrial projects across the state, all of which require stable and sufficient water supply.
