Credit : Datuk Seri Anwar Ibrahim's X
KUALA LUMPUR, October 30, 2026 — Prime Minister Datuk Seri Anwar Ibrahim on Friday witnessed the signing of an agreement that redirects RM5 billion of a Chinese loan once tied to two cancelled gas pipeline projects into the Northern Perak Water Supply Scheme (NPWSS), a project expected to strengthen long-term water supply in Perak and Penang.
In a post shared on X on Friday evening, Anwar said he had witnessed the signing of the agreement between Suria Strategic Energy Resources Sdn Bhd (SSER) and the Export-Import Bank of China (CEXIM) to channel the RM5 billion loan to finance the scheme.
Anwar explained that after the Trans-Sabah Gas Pipeline (TSGP) and the Multi-Product Pipeline (MPP) projects were terminated in 2018, the country still carried an obligation to repay RM8 billion in loans even though neither project went ahead. Through negotiations concluded by the MADANI Government, he said, RM5 billion of that loan could now be redirected to the NPWSS.
“Langkah ini mengurangkan kerugian daripada projek terdahulu dan membolehkan dana dimanfaatkan untuk prasarana asas rakyat,” he wrote in Malay, meaning the move reduces the losses from the earlier projects and allows the funds to be used for basic infrastructure for the people.
Water for homes, farms and industry
The Prime Minister said the NPWSS is expected to strengthen long-term water supply for domestic, agricultural and industrial use in Perak and Penang. “Kemajuan negara harus diterjemahkan kepada keperluan asas yang terjamin dan kehidupan rakyat yang lebih sejahtera,” he added, saying the nation’s progress must translate into secure basic needs and a better life for the people. His post was accompanied by four photographs from the ceremony.
SSER is a Minister of Finance Incorporated company. According to a Ministry of Finance (MoF) statement reported by Bernama, the agreement was signed by SSER board member Mohd Fariszan Ahmad and CEXIM vice-president Kang Wang. The ministry described the signing as a significant achievement for the government in concluding negotiations and achieving a partial recovery of the loan. It said the arrangement reduces the losses arising from the TSGP and MPP projects and ensures that the RM5 billion can be used to develop essential infrastructure that benefits the rakyat, particularly in Perak and Penang.
From Sungai Perak to Bukit Merah
The NPWSS is an integrated water supply project that involves transferring raw water from Sungai Perak to the Bukit Merah Dam, upgrading works along Sungai Kurau and Terusan Besar, and building water treatment plants in Kamunting and Bogak, the ministry said.
The project targets a supply capacity of 700 million litres a day for northern Perak, including the Kerian industrial area, 300 million litres a day for Penang, and 500 million litres a day of raw water for agricultural irrigation. The MoF said construction work will be carried out by local contractors.
The ceremony, held at Sasana Kijang in Kuala Lumpur, was also witnessed by Deputy Prime Minister Datuk Amar Fadillah Yusof, Home Minister Datuk Seri Saifuddin Nasution Ismail and Chief Secretary to the Government Tan Sri Shamsul Azri Abu Bakar, according to RTM. CEXIM chairman Chen Huaiyu and the Chargé d’Affaires of the Embassy of the People’s Republic of China in Malaysia, Lin Shiguang, were also present.
In his own post on X, Fadillah said the agreement enables the RM5 billion loan to be re-extended to finance the NPWSS.
Source : Datuk Seri Anwar Ibrahim’s X (https://x.com/anwaribrahim/status/2116125329182146796), with details from Bernama, RTM, The Edge Malaysia and Datuk Amar Fadillah Yusof’s X.
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