Penang postpones water tariff hike to July 2026, chief minister confirms

Penang postpones water tariff hike to July 2026, chief minister confirms



Chief Minister Chow Kon Yeow said the adjustment, which falls under the Second Implementation Period (TP2) of the Tariff Setting Mechanism (TSM), had initially been set to take effect today. — Picture by Yusof Mat Isa

Friday, 01 Aug 2025 12:54 PM MYT


GEORGE TOWN, Aug 1 — The Penang government has deferred the implementation of a new water tariff by nearly a year, delaying the scheduled hike from this month to July 1, 2026.

Chief Minister Chow Kon Yeow said the adjustment, which falls under the Second Implementation Period (TP2) of the Tariff Setting Mechanism (TSM), had initially been set to take effect today.


“The one-year postponement is expected to benefit 715,957 water users in Penang,” Chow said in a statement issued today.

Under the revised tariff structure, the average increase for 79.88 per cent of domestic users — or 613,660 households using up to 35 cubic metres of water monthly — will range between RM0.30 and RM2.55 per month.


For non-domestic users, 95.38 per cent of the state’s 98,155 commercial consumers using up to 200 cubic metres per month will see their bills rise by RM3.60 to RM35.70 monthly on average.


Chow said the revised tariff is expected to generate an additional RM20 million in revenue for Perbadanan Bekalan Air Pulau Pinang (PBAPP) over a six-month period in 2026.

“These funds will be used to upgrade the state’s overall water supply services,” he said, adding that details of the projects would be announced in due course.


In previous coverage, Malay Mail reported that the new tariff had been approved by the National Water Services Commission (SPAN) as part of a nationwide rationalisation to ensure the financial sustainability of water operators.

PBAPP had said the last tariff review in Penang was over 10 years ago and that the proposed adjustment was necessary to support infrastructure upgrades and rising operational costs.

Consumer groups and Opposition politicians had raised concerns about the impact on lower-income households, with some urging the state government to delay implementation or offer targeted assistance.

In response, Chow had said the state would consider ways to cushion the effects on vulnerable groups — a position now reflected in today’s announcement.

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Under Chow, Penang is undeniably the BEST state in M'sia 👍👍👍😁😁😁