GEORGE TOWN: The proposed bulk water supply agreement between Perak and Penang is expected to be signed next week, says Penang Chief Minister Chow Kon Yeow.
He said negotiations between the Perak State Development Corporation-Gamuda consortium and Penang Water Supply Corporation (PBAPP) had reached the final stage, with only technical and legal matters left to be resolved.
“It is in the final stage of negotiation. We have tentatively set next week for both parties to sign the agreement.
“Many technical matters and legal provisions still need to be carefully examined and agreed upon before the agreement is signed,” he told a press conference after the PBAPP 26th Annual General Meeting here yesterday.
Chow said pricing and other related terms remained under negotiation.
Separately, Chow, who is also PBA Holdings Bhd (PBAHB) chairman, said the company recorded higher revenue and pre-tax profit in 2025, while declaring a total dividend of 5sen per share for the financial year. He said shareholders approved a final dividend of 2.75sen per share at the meeting, on top of the interim dividend of 2.25sen per share paid on Jan 2.
The total dividend of RM9.1mil will be paid on July 24.
“2026 marks the 25th consecutive year that PBAHB has paid dividends to its shareholders,” Chow said.
The group posted revenue of RM568.44mil in 2025, up from RM527.60mil in 2024, with about 85% or RM483.20mil contributed by its main subsidiary, PBAPP, through water sales in Penang.
Profit before tax rose to RM157.36mil from RM149.34mil previously. However, profit after tax fell to RM114.55mil from RM144.17mil in 2024, mainly due to higher tax expenses, which increased to RM42.81mil from RM5.17mil.
Chow said PBAPP had been informed by the Inland Revenue Board that it was not eligible for reinvestment allowance under the Penjana (National Economic Recovery Plan) incentive for the 2020 to 2024 assessment years.
Despite the lower net profit, he said most of the group’s earnings would continue to be reinvested in water infrastructure projects in Penang.
“As in previous years, most of PBAHB’s profit after tax will be channelled back as capital expenditure for water projects in Penang,” he said.
Also present were PBAHB and PBAPP chief executive officer Datuk K. Pathmanathan, PBAPP chief financial officer Dr Mary Ann Harris, Deputy Chief Minister I Datuk Dr Mohamad Abdul Hamid and state secretary Datuk Seri Zulkifli Long.
