MADANI Government Secures RM5 Billion Repurposing of SSER Loan

YAB Dato’ Seri Anwar Ibrahim, Prime Minister and Minister of Finance, today witnessed the signing of a loan repurposing agreement valued at RM5 billion between Suria Strategic Energy Resources Sdn. Bhd. (SSER), a Minister of Finance Incorporated company, and the Export-Import Bank of China (CEXIM) towards the financing of the Northern Perak Water Supply Scheme (NPWSS).

The signing ceremony was also witnessed by YAB Datuk Amar Haji Fadillah bin Haji Yusof, Deputy Prime Minister II and Minister of Energy Transition and Water Transformation; YB Senator Datuk Seri Saifuddin Nasution Ismail, Minister of Home Affairs; YBhg. Tan Sri Shamsul Azri Abu Bakar, Chief Secretary to the Government; Mr. Chen Huaiyu, Chairman of CEXIM; Mr. Lin Shiguang, Chargé d’Affaires of the Embassy of the People’s Republic of China in Malaysia; and Mr. Jun Xie, Vice President of China National Petroleum Corporation (CNPC).

The agreement was signed by Mr. Mohd Fariszan Ahmad, a member of the Board of Directors of SSER, and Mr. Kang Wang, Vice President of CEXIM.

As background, following the termination of the Trans-Sabah Gas Pipeline (TSGP) and Multi-Product Pipeline (MPP) projects in 2018, the Malaysian Government remained liable for the repayment of RM8 billion of related loans from CEXIM, even though the projects were not implemented. This remained unresolved despite efforts by the previous three administrations.

The signing of this agreement marks a significant achievement for the MADANI Government, under the leadership of YAB Dato’ Seri Anwar Ibrahim in concluding negotiations and achieving a partial recovery on the loan by repurposing RM5 billion to implement NPWSS. Thus, reducing the losses arising from the TSGP and MPP projects and ensuring that RM5 billion can be utilised to develop essential infrastructure that benefits the rakyat, particularly in the states of Perak and Penang.

NPWSS is an integrated water supply infrastructure project that involves transferring raw water from Sungai Perak to Bukit Merah Dam, upgrading works along Sungai Kurau and Terusan Besar, and constructing water treatment plants in Kamunting and Bogak.

The project targets a water supply capacity of 700 million litres per day for northern Perak, including the Kerian industrial area, 300 million litres per day for Penang, and 500 million litres per day of raw water for agricultural irrigation, with the construction works to be undertaken by local contractors.

Water security is among the Federal Government's priorities to ensure the well-being of the rakyat and strengthen economic development, especially in the Northern Perak region. The implementation of NPWSS is expected to strengthen long-term water security, meet the increasing demand for domestic, agricultural, and industrial uses, and support socioeconomic development.

MINISTRY OF FINANCE
Putrajaya
30 October 2026

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