BATU KAWAN, Dec 12 — The Penang state government is willing to hold discussions with Kedah over the latter’s recent demand for an annual payment of RM50 million in compensation for drawing water from Sungai Muda.

Penang Chief Minister Chow Kon Yeow said the state government does support Kedah’s efforts to secure compensation from the federal government as raw water matters are under the purview of the federal government.

"I think the people do not want to see both states engaged in a ‘verbal war’ through the media but hope that a discussion is held...so I feel it is better that we discuss the matter,” he said.

He was speaking to reporters after officiating the groundbreaking ceremony of Iconic Worldwide Bhd’s new factory here, today.

He said Penang only extracted raw water from its side of Sungai Muda in line with international conventions.

Chow said he had discussed the issue with the Minister of Environment and Water in Putrajaya in October and the minister said that the important agenda at the ministry was to ensure all states had adequate raw water supply.

Last Wednesday, Kedah Menteri Besar Kedah Muhammad Sanusi Md Nor was reported to have forwarded several letters of demand to the Penang state government insisting on an annual RM50 million payment for drawing raw water from Sungai Muda. — Bernama