GEORGE TOWN, June 25 — The Penang government will study the need to pay compensation to Kedah if the logging licences in Ulu Muda are withdrawn.

Chief Minister Chow Kon Yeow said Penang extracted water from Sungai Muda on the Penang side which was its constitutional right.

He said, under international rights, any state had the right to get water from within its own borders and this would not be a problem.

"We are leaving it to the Ministry of Energy, Green Technology and Water Ministry (KETTHA) to decide if Penang must pay to Kedah or not,” he told reporters here today.

He said the Penang Government was prepared to hold talks with Kedah and the federal government on the issue of logging in Ulu Muda, Kedah, which was a threat to the water catchment area in Muda Dam there.

He said the matter would be handled by the Penang Water Supply Corporation (PBAPP) to hold discussions with Kedah and KETTHA.

"Among the main issues which would be discussed is stopping logging in Ulu Muda so that the water catchment can continue to channel water to Sungai Muda. More than 80 per cent of raw water is extracted by Penang from Sungai Muda each day,” he said.

He said the best solution to the issue of logging in Ulu Muda is paying compensation to Kedah and Penang was prepared to work with Kedah in getting compensation from the federal government as forest premium for logging.

Earlier, Chow officiated the German Dual Vocational Penang (GDVT) and witnessed the signing ceremony of a memorandum of understanding between the Penang Skills Development Centre (PSDC) and the Wawasan Open University.

Last Saturday, Kedah Mentri Besar Datuk Seri Mukhriz Mahathir issued a statement that Kedah was willing to discuss with neighbouring states to resolve the problem of logging in Ulu Muda. — Bernama