THE Penang government will hold discussions with the Kedah and federal governments on the Ulu Muda logging issue, which poses a threat to the water catchment area at the Muda Dam there.

Chief Minister Chow Kon Yeow said the water catchment area at the Muda Dam, Ulu Muda, which channels water to Penang, Kedah, and Perlis, had shrunk.

Chow said the logging issue risked causing a regional water crisis in the three states if it was not resolved soon.

“Ulu Muda covers 163,103ha of rainforest in Kedah. About 96% of Kedah’s raw water supply, 70% of Perlis’ raw water, and more than 80% of Penang’s raw water come from Sungai Muda daily.

“It is the most important water catchment area in the north, and if the logging issue is not resolved immediately, 4.09 million people will suffer from water shortages and thousands of businesses will suffer losses,” he said in George Town today.

Chow said Penang and the Penang Water Supply Corporation were committed to the “Save Ulu Muda” campaign, not only for the interest and benefit of the state, but also for Kedah and Perlis.

Chow said the best solution for the logging issue was to compensate Kedah, adding that the Penang government was ready to work with Kedah to seek compensation from the federal government, in lieu of a “forest premium” for logging. – Bernama, June 23, 2018.