GEORGE TOWN: Penang consumers will not face higher water charges despite a projected 15% to 30% rise in Penang Water Supply Corporation (PBAPP) operating costs, says Chief Minister Chow Kon Yeow.
“The cost pressure at the utility level is a major challenge in ensuring the people continue to enjoy quality water supply without affecting the agency’s financial stability,” he said in a written reply to Lee Boon Heng (PH-Kebun Bunga) at the Penang State Legislative Assembly yesterday.
Chow said the global energy crisis would also impact Penang’s economy, especially its manufacturing and semiconductor sectors, as geopolitical tensions caused foreign investors to adopt a wait-and-see approach.
He said this had slowed new capital inflows, weakened labour market growth and limited the creation of high-impact jobs.
He added that rising crude oil prices had also increased production costs for energy-intensive factories, while disruptions in global logistics made critical raw materials more expensive and difficult to obtain.
“Companies were facing cash flow pressure as soaring material costs and supply uncertainties forced them to use reserve funds for urgent purchases at premium prices, affecting reinvestment and expansion plans.
“As a global semiconductor and electronics hub, Penang remained highly vulnerable to supply chain disruptions.
“Uncertainty in the supply of critical components may delay deliveries to international customers and affect Penang’s reputation as a just-in-time manufacturing hub,” he said.
On another matter, Chow said the Penang government would not amend the state constitution to change the wording of the chief minister’s tenure limit from “two terms” to “10 years”.
He said Article 7 Clause 2(a) of the state constitution provides that the Yang di-Pertua Negeri shall appoint as chief minister, a member of the State Legislative Assembly who commands the confidence of the majority of assemblymen and “has not at any time held the office of Chief Minister for two terms”.
“If the State Legislative Assembly is dissolved before a term reaches five years, the phrase ‘two terms’ should be understood as the cumulative calculation of the years involved for the first and second terms.
“The total duration, therefore, may be less than 10 years but cannot in any circumstances exceed 10 years,” he said.
Chow said this in a written reply to Lee Khai Loon (PH-Machang Bubuk) yesterday.
Khai Loon had asked for the definition of “two terms” in the context of the state constitution, particularly when the assembly may be dissolved before completing a full five-year term.
