Perak seeks RM1.4b in Budget 2027 for key water infrastructure

Perak Menteri Besar Datuk Seri Saarani Mohamad said the project was among the state’s priorities submitted by the Perak Economic Planning Unit to the Finance Ministry ahead of the Budget announcement. — Bernama pic

By John Bunyan

First Published: Monday, 28 Sep 2026 6:54 PM MYT

IPOH, Sept 28 — Perak is hoping for at least RM1.4 billion in the upcoming Federal Budget to fund key water supply infrastructure, particularly a project to transfer water from Sungai Perak to Bukit Merah to support farmers regularly affected by drought.

Menteri Besar Datuk Seri Saarani Mohamad said the project was among the state’s priorities submitted by the Perak Economic Planning Unit to the Finance Ministry ahead of the Budget announcement.

“We are currently in the phase of realising the project to transfer water from Sungai Perak to Bukit Merah. If there is surplus water later, only then will we consider selling treated water to Penang.

“This is expected to help meet water needs in Kerian Integrated Green Industrial Park in northern Perak, including for farmers who, as we know, face problems every time there is a drought,” he said.

Saarani said this in a press conference when asked about state government’s wish list ahead of Federal Budget, at the launching of the 2MW Biogas Renewable Energy Plant at the Lahat Sanitary Landfill here. 

Saarani said the project was expected to be operational by around 2030 or 2031 if it proceeded according to schedule.

“Hopefully, it will be included in this year’s Budget,” he said.

He said the project would involve two main components, with the first involving infrastructure such as pumps and water tunnels.

“This infrastructure should be funded by the Federal Government through the Energy Transition and Water Transformation Ministry, with the necessary infrastructure works falling under the federal government’s responsibility through National Water Services Commission,” he said.

Saarani said the second component could be financed through Khazanah Air Perak, a consortium involving the state government and a subsidiary of the Perak State Agricultural Development Corporation.

“We can use loans, either from the federal government, through private finance initiative financing or from banks.

“But this can only be done once the infrastructure is in place,” he said.

Saarani said the infrastructure was crucial as the state had already identified the route for transporting water from Sungai Perak.

“We need pumps to draw the water and tunnels to transport it. This is expensive and needs to be started. That is the most important thing for us,” he said.

He said the estimated cost for the infrastructure alone was between RM1.4 billion and RM2 billion, excluding other components of the project.

“The longer we delay, the more expensive the materials will become,” he said.

Meanwhile, Saarani said the state government had also identified several urgent needs involving schools during a recent state development meeting.

He said one of the immediate concerns was the need for additional buildings at existing schools where six- and seven-year-old pupils would be entering Year One simultaneously next year.

“Therefore, there is a need to construct additional buildings,” he said.

Saarani said another concern involved dilapidated school buildings, with the state government receiving complaints from school principals and parent-teacher associations.

“There are many buildings that are already in poor condition, and this is beyond the capacity of the state government,” he said.

He said Perak also needed new schools in areas experiencing rapid development, particularly new growth areas.

“Whenever new development projects take place, there will be a need for new housing areas. Every new housing development should provide a location for a school.

“Schools are very important. We do not want schools operating in two sessions. We want single-session schools and schools that provide a comfortable environment for students to learn,” he said.