GEORGE TOWN (July 8): Penang Water Supply Corporation (PWSC) plans to defer the implementation of a proposed water tariff increase by at least six months, said Chief Minister Chow Kon Yeow.

He explained that the National Water Services Commission has submitted a proposal to revise water tariffs and is currently awaiting Cabinet approval before the revised rates can be gazetted and implemented in several states, including Penang.

"Delaying the implementation by six months would cost PWSC about RM40 million,” he said after launching the corporation’s new RM5 billion Islamic Medium-Term Notes (Sukuk Wakalah) on Tuesday.

Chow, who also chairs PWSC, said the sukuk issuance would enhance the corporation’s capacity to raise long-term capital for water infrastructure development through Shariah-compliant and sustainability-labelled debt instruments.

This dynamic financing platform will also enable PWSC to scale up investments in critical water infrastructure projects while reinforcing the state’s commitment to sustainable development.

Chow said PWSC’s Islamic Medium-Term Notes have been assigned the highest credit rating of AAA/Stable by RAM Rating Services Berhad, while its Sustainable Finance Framework received a Gold Sustainable Finance Rating from RAV Sustainability Sdn Bhd.

They were issued in collaboration with Maybank Investment Bank Berhad and United Overseas Bank (Malaysia) Berhad, which were appointed as joint principal advisers, joint lead arrangers and joint lead managers.

Maybank Investment Bank was also the sole sustainable structuring adviser for the development of PWSC’s Sustainable Finance Framework.

Uploaded by Magessan Varatharaja