Following Kedah Menteri Besar Muhammad Sanusi Md Nor’s demand for RM50 million a year as compensation for drawing water from Sungai Muda, Penang Water Supply Corporation (PBAPP) reiterated that the federal government should address the issue.

The river flows from the eastern hinterlands of Kedah and empties into Penang’s territory in the west.

Jaseni Maidinsa, chief executive officer of PBAPP, said Penang abstracted raw water from Sungai Muda at the Lahar Tiang Intake, which is located within the state.

“We will continue to speak out for the conservation of the Greater Ulu Muda Forest Complex that encompasses 163,000 ha of rainforests,” he said in a statement.

“These rainforests deliver 70% of Perlis’ raw water and 96% of Kedah’s raw water. More than 80% of the raw water that PBAPP abstracts daily from Sungai Muda also originates from Ulu Muda.”

He said damage from any rare earth elements (REE) mining venture would potentially bring lasting irreparable damage to the most valuable water catchment area in the Northern Corridor Economic Region (NCER).

He said Kedah’s proposed RM60 billion mining venture would come at the expense of 4.2 million Malaysians’ lives and livelihoods, “not to mention an estimated GDP contribution of RM147.8 billion from Perlis, Kedah and Penang in 2019”.

Jaseni said the water, land and natural resources ministry had stated in a parliamentary reply on Nov 4 last year that Kedah had gazetted 106,418 ha of Ulu Muda forests as permanent reserve forests (PRFs) since 1932.

He said Penang and PBAPP would support compensation for Ulu Muda’s conservation to be sought from the federal government, “if Kedah is willing to gazette and classify 163,000 ha of rainforests in Ulu Muda as water catchment forests permanently”.