Penang will continue to uphold its riparian rights to abstract raw water from Sungai Muda without paying Kedah, as part of this river flows through the territory of Penang.
Sungai Muda is a transboundary river that separates Penang and Kedah. What this means is that the centre line of a stretch of Sungai Muda defines the state territories of Penang and Kedah.
In Penang, Perbadanan Bekalan Air Pulau Pinang Sdn Bhd (PBAPP) draws raw water from the river at the Lahar Tiang Intake. The Lahar Tiang Intake is located in Seberang Prai, Penang, not in Kedah, and downstream of 13 SADA water treatment plants.
Historical Perspective
In 1973, the late Tun Abdul Razak bin Hussein, Malaysia’s second Prime Minister, officiated the opening of the “Sungai Muda Water Scheme” (SMWS) for the benefit of Penang and Kedah. In his message printed on the official programme for the opening ceremony, the late Tun Dr. Lim Chong Eu (who then served as Penang Chief Minister) noted that the SMWS was “an in-state water supply scheme.”
In 1982, Penang and Kedah signed a Memorandum of Understanding (MoU) to facilitate the “Penang Water Supply Project”. This MoU moved the states’ boundary to the centre line of a stretch of Sungai Muda. Prior to this agreement, that whole section of the Sungai Muda river channel was in the territory of Penang.
In 1985, Kedah agreed that Penang may draw raw water from Sungai Muda. This “water guarantee” was a pre-condition for a 1973 Asian Development Bank (ADB) loan, arranged by the Federal Government for Penang to implement water supply projects.
The Kedah and Penang (Alteration of Boundary) Act 1985 (Act 325) was subsequently passed and included as an Act in Article 2 of the Federal Constitution. Both Penang and Kedah have also gazetted state enactments that place the states’ boundary at the centre line of the Muda River channel.
In effect, the Federal Government, the State Government of Kedah and the State Government of Penang have duly documented the fact that part of Sungai Muda flows through Penang territory. Accordingly, it may be said that both Kedah and Penang have equal riparian and constitutional rights to abstract raw water from Sungai Muda.
No Obligation to Pay
Since 1973, Penang and Kedah have been abstracting water from Sungai Muda without paying any form of charge, fee or compensation to each other.
Please let me be clear: In so far as the raw water abstraction from Sungai Muda is concerned, Penang is not obligated to pay Kedah. It is therefore irrational for the Kedah Menteri Besar to continue to demand for some form of payment from Penang, which will inevitably burden water consumers in Penang for no valid reason.
I once again reiterate, the Penang State Government is ready and waiting to defend its Riparian Water Rights against the Kedah Government in court.