What legal basis does Penang have for not paying Kedah for water?

Question

Accepted Answer

Penang's Legal Stance on Sungai Muda Water Abstraction

The Penang government asserts its legal right to abstract raw water from Sungai Muda without payment to Kedah, citing a lack of formal agreements and confidence in Kedah's legal standing to demand compensation. This position is rooted in the historical practice since 1973, during which Penang has continuously drawn water from the river without any contractual obligation or payment to the neighbouring state. Penang's Chief Minister, Chow Kon Yeow, has indicated readiness to defend this stance in court should Kedah pursue legal action for payment.
Absence of Formal Agreements

Penang's primary legal argument rests on the fact that no formal contract, memorandum of understanding, or any form of agreement has ever been established between the two states for the abstraction of water from Sungai Muda. This lack of a binding legal instrument means Penang contends there is no basis for Kedah to impose charges or demand payment for the raw water supplied to Penang. The state has relied on this legal position since the practice began in 1973.
Confidence in Legal Standing

The Penang government expresses strong confidence that Kedah lacks the legal standing to claim payment for the water resources. This confidence informs Penang's preparedness to engage in legal proceedings if Kedah attempts to enforce any payment demands. Penang's legal team believes that without a formal agreement, any such demand would be legally untenable, providing a firm foundation for Penang's continued abstraction of water.
Historical Abstraction Practices

Since 1973, Penang has been legally abstracting raw water from Sungai Muda, a practice that has continued uninterrupted for decades. This long-standing historical precedent forms a significant part of Penang's defence, suggesting a de facto acceptance or understanding of the water-sharing arrangement, even in the absence of explicit written agreements. The continuity of this practice underpins Penang's assertion of its rights.

Reading history

Hide →

This history is cleared when the page is closed.

What legal basis does Penang have for not paying Kedah for water?

Loading

Was this article helpful?

Helpful

Not helpful

Report an issue

1

0

0

Share with friends