The Penang Water Supply Corporation (PBAPP) has cautioned against the Kulim International Airport (KXP) project, as it may jeopardise water supply to Penang.

PBAPP said an environmental impact assessment of the proposed project shows it may contaminate Sungai Muda, which supplies water to South Kedah and neighbouring Penang.

"PBAPP does not begrudge Kedah's ambition to pursue a new international airport project that is expected to bring in about RM3.8 billion in private investment, and this amount is expected to be injected into the local economy...