KUALA LUMPUR (Dec 20): The Penang government has decided to maintain the water intake fee to be imposed for 2023 at three sen per cubic metre, based on the annual actual production volume for the year.

PBA Holdings Bhd said its subsidiary Perbadanan Bekalan Air Pulau Pinang Sdn Bhd (PBAPP) was informed of this in a letter from the state government on Tuesday (Dec 20).

The water intake fee is imposed by the government based on the power given to the state pursuant to Article 110 of the Federal Constitution.

The recurrent related party transaction entered into by PBAPP with the state government is revenue/trading in nature which is necessary for day-to-day operations and in the ordinary course of business, PBA said in a statement.

The Penang government has a 55% stake in PBA, according to Bloomberg.

PBA said the water intake fee will not have any effect on its issued share capital and shareholdings of the substantial shareholders. The fee is also not expected to have any material effect on the net assets and the earnings of the group for 2023.

PBA's share price closed unchanged at 75.5 sen on Tuesday, with a market capitalisation of RM248.46 million.