Summary
  • Penang and Perak agree on a 40-year water supply arrangement.
  • Agreement highlighted under Budget 2027.
  • Water volume, costs and implementation details not disclosed.

KUALA LUMPUR, October 9 — Penang and Perak have reached a 40-year bulk water supply agreement, marking a development in cooperation between the two states.

Over long-term water supply arrangements. Prime Minister and Finance Minister Anwar Ibrahim announced the agreement during the Budget 2027 presentation.

Saying the MADANI administration had successfully facilitated an understanding between the Penang and Perak state governments.

The agreement was highlighted as part of the federal government’s broader commitment to improving basic infrastructure and water supply services across Malaysia.

However, the budget speech did not disclose the volume of water to be supplied, the cost of the agreement, the source of the water or when deliveries are expected to begin.

Details regarding infrastructure requirements, financing arrangements and potential effects on consumer water tariffs were also not stated.