Questioning the long-term financial and operational risks of the water deal

While the agreement promises security, critics and cautious observers point to the significant financial commitments involved over the next four decades. The total value of the deal, estimated at RM24.6 billion, places a long-term fiscal burden on the state’s water utility that will be subject to periodic price reviews. There are concerns regarding the potential for future cost escalations, particularly as the treated water charge of RM1.70 per cubic metre is subject to adjustment every three years. Furthermore, the project's success depends on complex inter-state cooperation and the timely completion of massive infrastructure in Perak. Any delays or operational failures in the new treatment plant could leave Penang in a vulnerable position, despite the contractual guarantees, raising questions about whether the state has adequately mitigated all potential risks.