VELL-y FIRE-y Cherubic Kedah MB's VELL-y FIRE-y muddy plan to eff up Penang's water supply may VELL backfire on Kedahans - VELL-y FIRE-y good

FMT:

Kedah’s plan for storage ‘tanks’ will hit Penang manufacturing, say groups

Kedah plans to build 14 tanks 20m to 30m deep and up to 1km wide along Sungai Muda to store water. (PBA pic)

PETALING JAYA: Penang’s manufacturing industry will be badly hit if the Kedah government’s plan to store water in the state picks up steam, industrialists said.

They said ample supply of water is crucial for the manufacturing sector, which is the backbone of the state’s economy.

They were commenting on the plan to build 14 water storage areas along Sungai Muda to ensure sufficient water for Kedahans and padi farmers along the river, a move which could potentially reduce water supply to Penang and its 1.7 million residents.

About 80% of Penang’s water is extracted from the part of Sungai Muda that flows in the state, and SME Association of Malaysia president Michael Kang said any measure to stem this supply will “definitely affect” the manufacturing sector, which contributes about 43% to the state’s GDP.

“Water is one of the most important factors in manufacturing. This is especially true in electronics manufacturing, which needs a lot of water, and is a very big industry in Penang,” he told FMT, calling on both state governments to sit down and iron out a solution.

Electronics and electrical products produced the lion’s share of Malaysia’s total exports in 2020 at 39.4% (RM386.11 billion), according to the Malaysia External Trade Development Corporation (Matrade), a 3.5% increase from 2019.

Earlier this month, InvestPenang, the state government’s investment arm, said a total of RM14.1 billion of investment was approved in the state’s manufacturing sector in 2020, short of the record RM16.9 billion in 2019.

Total approved manufacturing investments in Penang are primarily related to the state’s key promoted industries – electronics and electrical, machinery and equipment, and scientific and measuring equipment (including medical devices).

The managing director of Chemdyes Sdn Bhd, a textile chemical manufacturer and distributor based in the Prai Industrial Estate, said disruptions in water supply will have a negative effect on businesses in any state.

“The last agreement between Kedah and Penang over this issue was in 1973, so both parties should have a dialogue and go back to what is constitutionally correct,” Joe Sidek told FMT.

The Federation of Malaysian Manufacturers (FMM) shared Joe’s view, calling on both state governments to meet at the negotiating table.

“We hope they can sit down and reach an amicable solution,” said FMM Penang chairman Jimmy Ong.

The plan to build a Takungan Air Pinggiran Sungai (TAPS) system with 14 tanks 20m to 30m deep and up to 1km wide along Sungai Muda was revealed by Kedah menteri besar Muhammad Sanusi Md Nor.

He had earlier warned that Penang should “be ready” to draw mud from its end of Sungai Muda (in Kepala Batas) if it did not compensate Kedah for water drawn from the river.

The National Water Services Commission (SPAN) said it is a good idea as it would conserve excess water from rainfall to be used during drier periods.

However, its chief executive officer, Ahmad Faizal Abdul Rahman, said it is likely that such projects may adversely affect Penang and added that it would first require the consent of the environment and water ministry.

Abdul Malik Abdullah, the pro tem president of the Business Survival Group, noted that Kedahans are also dependent on jobs created by Penang’s manufacturing sector, and Sanusi’s move could backfire on him.

Malik, who heads the coalition of 262 business associations and chambers of commerce comprising nearly one million companies, urged Kedah politicians to look at the issue through a national lens instead of regarding it solely as a state asset.

“Water is a natural resource. Yes, states have control over water and land, but the approach taken by the state government is not good for business and not good for the country,” he said.

Penang chief minister Chow Kon Yeow had previously said the state had been extracting raw water from Sungai Muda since 1973 and had every right to continue doing so as it never signed any agreement to pay Kedah for the resource.

Earlier this week, Chow called on the federal government to set up a statutory body to manage and protect the Ulu Muda Basin, through which Sungai Muda flows, saying the area, especially its 163,000ha of rainforests, serves as the most important water catchment area in the Northern Corridor Economic Region (NCER).