PBA Holdings Bhd (PBAHB) has recorded a profit after tax (PAT) of RM114.55 million in 2025 and rewarded its 6,996 shareholders with a total dividend of 5.0 sen per share for the financial year.
Speaking after PBAHB’s 26th Annual General Meeting (AGM) at Jen Hotel today, Chief Minister and PBAHB chairman Chow Kon Yeow said the company’s performance reflects its financial resilience and commitment to delivering long-term value to shareholders and the people of Penang.
“The final dividend of 2.75 sen per share approved at the AGM will amount to a payout of RM9.1 million and will be distributed on July 24, 2026. Combined with the interim dividend of 2.25 sen per share paid on Jan 2, 2026, it marks the 25th consecutive year that PBAHB has paid dividends to its shareholders,” Chow said.
For the year under review, PBAHB recorded revenue of RM568.44 million, an increase from RM527.60 million in 2024. Approximately 85 per cent, or RM483.20 million, of the revenue was contributed by its principal subsidiary, Penang Water Supply Corporation (PBAPP), through water sales to registered consumers in Penang.
“The group’s profit before tax increased to RM157.36 million from RM149.34 million in the previous year. However, PAT declined from RM144.17 million in 2024 due mainly to a substantial increase in tax expenses, which rose to RM42.81 million compared with RM5.17 million previously,” he explained.
He noted that the increase followed the Inland Revenue Board’s decision that PBAPP did not qualify for the reinvestment allowance under the PENJANA incentive for the years of assessment 2020 to 2024.
Despite this, Chow said PBAHB would continue to reinvest most of its profits into capital expenditure for water supply projects aimed at supporting Penang’s future development and ensuring sustainable water services.
When asked for an update on the Perak-Penang Water Project, he said that both parties would sign a deal in Ipoh next week. This project will enable Penang to purchase 500 million litres per day (MLD) of treated water from Perak, providing a long-term solution to Penang’s water supply needs.
PBAHB’s operational excellence was also recognised through 12 major awards and accolades received in 2025 and the first quarter of 2026.
Among the notable achievements were the Malaysia Water Award for Management 2025 from the Malaysian Water Association, a Gold Award in the circular economy and water reuse category at the Malaysia International Water Convention 2025, two The Edge Centurion Awards 2025, and inclusion in Bursa Malaysia’s Quality 50 Index.
On the financial front, Chow highlighted the launch of PBAPP’s inaugural RM5 billion Islamic Medium-term Notes (IMTN) programme and sustainable finance framework as a key milestone.
PBAPP became the first Penang state government-linked company to establish an IMTN programme, which received an “AAA/Stable” rating from RAM Rating Services Berhad.
The sukuk programme will enable PBAPP to secure medium- to long-term financing from Malaysia’s capital market to support the implementation of Water Contingency Plan 2030 projects, capital expenditure, operational needs and refinancing requirements.
Meanwhile, PBAPP chief executive officer Datuk K. Pathmanathan said Penang’s 721,066 water consumers are the primary beneficiaries of PBAHB’s annual profits, as a substantial portion of the company’s earnings is reinvested into water infrastructure projects to secure the state’s future water supply.
He added that the company allocated about 50% of its 2024 profit after tax (PAT) of RM144.17 million towards water projects in Penang in 2025.
For 2026, PBAHB has earmarked RM99.55 million, or about 87% of its 2025 PAT of RM114.55 million, as capital expenditure (CAPEX) for water projects.
“This demonstrates that Penang’s water consumers are the main beneficiaries of PBAHB’s annual profits, which are largely derived from the sale of water and the provision of water supply-related services by PBAPP,” he said.
Looking ahead, Pathmanathan said the state’s rapid socioeconomic development towards 2032 must not be constrained by water shortages, with 12 major water infrastructure projects planned or underway to ensure long-term supply resilience.
He said Penang’s water consumption stood at 865 million litres per day (MLD) in 2025 and is projected to rise by 34.3% to about 1,162 MLD by 2032, driven by major industrial and property developments.
These include expansions by Intel, Osram, Siliconware Precision and Western Digital, as well as property projects such as Andaman Island, Penang International Commercial City, The Dew and The Skyline in Paya Terubong.
Other key drivers include Batu Kawan Industrial Park 3 (BKIP3), PERDA’s 5,000 new homes in Seberang Perai Utara, the Penang Development Corporation’s Linear Waterfront Development in Bayan Lepas, Silicon Island A and several other projects in Seberang Perai.
In response, PBAPP is implementing six Water Contingency Plan 2030 (WCP 2030) projects scheduled for completion by 2031 to strengthen supply reliability and reduce reliance on the Sungai Dua Water Treatment Plant (WTP).
These include four new WTP-related projects that will increase PBAPP’s maximum designed water treatment capacity by 478 MLD:
- The 114 MLD Mengkuang Park WTP in Seberang Perai Tengah, to be completed by end-2026
- The 114 MLD Sungai Kerian WTP in Seberang Perai Selatan, to be completed by 2030
- The 136 MLD Sungai Perai Water Supply Scheme in Seberang Perai Tengah, to be completed by 2031
- The 114 MLD Sungai Muda WTP in Seberang Perai Utara, to be completed by 2031
Two additional projects involve major treated water pipeline infrastructure. A 1.8-metre diameter, 13-kilometre pipeline will be constructed from the 1,342 MLD Sungai Dua WTP to the Butterworth take-off point of the third Penang Twin Submarine Pipelines (PTSP), while another 1.8-metre diameter, 3.9-kilometre pipeline will connect the Macallum landing point of the third PTSP to the Bukit Dumbar Reservoir and Pumping Station Complex.
These pipelines will increase PBAPP’s capacity to transfer treated water from Sungai Dua to Penang Island from 400 MLD currently to 600 MLD by 2030.
In addition, PBAPP has engaged a private company to construct an additional 80 MLD Sungai Kerian Water Treatment Plant under a build-operate-transfer (BOT) model, targeted for completion by 2027.
At the federal level, the government, through the Water Supply Division of the Ministry of Energy Transition and Water Transformation (PETRA), has also committed to completing several supporting projects between 2027 and 2029.
These include a new Sungai Muda Barrage at Rantau Panjang in Seberang Perai Utara to improve raw water abstraction, as well as expansion works for the Mengkuang Dam system, including a 440 MLD Lahar Yooi raw water pump house and a 400 MLD reversible flow pipeline to increase drawdown capacity from 600 MLD to 1,000 MLD during dry seasons and emergencies.
Other federal projects include raw water resource developments at Sungai Kerian involving expansion of the Bukit Panchor Dam and an off-river storage scheme, water intake works at Titi Kerawang and Teluk Awak in Teluk Bahang, and a comprehensive study on Penang’s raw water resources to guide future planning.
Pathmanathan said the combined investment for the 12 water projects amounts to about RM2.9 billion over five years, with RM2.098 billion for WCP 2030 projects and RM838 million under federal initiatives, while the Sungai Kerian BOT project is separate.
“PBAPP must ensure that taps do not run dry in 2030 at all costs as Penang continues to progress towards a brighter future,” he said.
Also at the press conference were Deputy Chief Minister I Datuk Dr Mohamad Abdul Hamid, State Secretary Datuk Seri Zulkifli Long and Dr Mary Ann Harris.
Story by K.H. Ong
Pix by Siew Chia En
Video by Alissala Thian