Penang wants Deputy Prime Minister Ahmad Zahid Hamidi to  immediately ban logging activities in the Ulu Muda Forest Reserves and to protect by law the catchment areas which are the main sources of raw water for Penang and south Kedah.

Chief Minister Lim Guan Eng said protecting forest reserves would reduce the risk of a major water crisis in the two states should there be an extended drought.

“This move will ensure that Penang and Kedah continue to perform economically well and stable throughout the year,” Lim said in a letter issued to Zahid in Putrajaya today.

This is the Penang government's second letter to Zahid, who chairs the National Water Resources Council, since April this year, when the northern region was hit by the Super El Nino phenomenon which dried up water supply in the country.

“Forest reserve protection is positively welcomed by all sectors in Malaysia, including local and global environmentalists, and will be seen as a true environmental-friendly move by the Malaysian government,” he added.

Lim urged Zahid to intervene and ban all logging activities at the Ulu Muda Reserve Forest, which is a catchment area for Sungai Muda, the main source of raw water for two million people in Penang and south Kedah.

He said the continued destruction of forest reserves would diminish the raw water from the river.

Should the water quality be affected, it would have an impact on the quality of treated water for Penang and south Kedah, he added.

Lim pointed out that Perbadanan Bekalan Air Pulau Pinang Sdn Bhd (PBAPP) extracts 80% (or one billion litres) of Penang’s raw water from Sungai Muda, while 14 of Kedah’s water treatment plants also extract water from the northern river.

Penang and Kedah extract 1.56 billion litres from Sungai Muda daily, and without this, there would be a major water crisis in the states, Lim said.

A crisis would greatly affect the supply of water to thousands of businesses, including high-technology companies operating in the Kulim High Tech-Park and industrial parks in Penang, he added.

“In 2014, Penang contributed 6.5 % (or RM88 billion), while Kedah 3.4% (or RM47 billion) to the country’s GDP totalling US$$338 billion (RM1365.4 billion),” Lim said.

“A water crisis will spell billions of losses for these industries, while Penang, Kedah and Malaysia’s reputation as a service, tourist, property development and manufacturing hub (especially for electronics and electrical) will be greatly affected,” he added.