Latest news with #PenangIsland
Malay Mail
22-05-2025
- Business
- Malay Mail
CM: With no other natural resources, Penang has always relied on land transactions for revenue
GEORGE TOWN, May 22 — Penang Chief Minister Chow Kon Yeow said the state has always depended on land transactions — through leases, alienation, and other methods under the National Land Code — to generate revenue. He said Penang lacks natural resources such as mines or a logging industry, and without these revenue streams, the state must rely on its land and land reclamation to create more land. 'What is there to be ashamed about the state disposing of its lands for revenue for the sake of development?' he said in his winding-up speech at the state legislative assembly today. Chow said Penang has depended on this model for the past five decades, and there is nothing shameful about it. He added that if Penang had not followed this approach to establish the Free Industrial Zone in the past, it would not be where it is today. 'What would Penang be like today if we had not disposed of land through leases and alienation to attract investors here?' he asked. He said the state cannot always rely on federal handouts, especially when the federal government is facing its own financial challenges. 'We have to depend on ourselves, so this is what we can do,' he said. Chow was responding to Penaga assemblyman Yusni Mat Piah (PAS), who had raised concerns about the state 'selling off' government land to fund its finances. 'The business of land transactions in Penang was not solely to get revenue but at the same time, it was aimed at driving development, creating job opportunities and improving economic prospects of the area,' he said. He clarified that technically, the state is not 'selling land' but disposing of it through leases, alienation, or other mechanisms. 'So the term 'selling lands' cannot be used in the context of the state's land administration,' he said. When disposing of land, he said the state government considers valuations provided by the Valuation and Property Services Department (JPPH). 'If the land involved a strategic project, including the construction of housing, the state would call for a Request for Proposal to dispose of the land,' he said. He added that this allows the state to obtain a higher premium than the pre-development land value. Chow stressed that this method of land disposal not only raises revenue but also serves a greater purpose. 'This is because the land is used for development and to improve the socio-economy of the area,' he said. He noted that if the state did not take the initiative to develop land, it would face the burden of maintenance costs, while the public would miss out on benefits such as roads and playgrounds. Earlier, clarifying the state's financial situation, he said Penang had recorded RM374,435,482.53 in revenue as of May 20. This comprised tax revenue of RM98,716,994.29, non-tax revenue of RM250,830,784.60, and non-revenue receipts of RM24,887,703.64. The state's expenditure as of May 20 stood at RM296,196,363.99. The breakdown was as follows: RM71,375,762.36 (emoluments), RM48,776,352.48 (services and supplies), RM3,754,878.50 (assets), RM170,268,758.36 (grants and fixed charges), and RM2,020,612.29 (other expenses). 'The revenue collected exceeded expenditure so the state recorded a revenue surplus of RM78,239,118.54,' he said. He said the balance of the consolidated revenue account as of May 21 was RM235,550,779.63. 'This clearly indicated that non-tax revenue is the primary contribution to the state's income, accounting for over 67 per cent of the total revenue,' he said. He said this revenue includes income from land premiums, service fees, and investment returns. Chow also pledged to restore the consolidated account balance to RM1 billion before the end of his term, so that the state government can use it for the welfare of Penangites in the future.
Malay Mail
21-05-2025
- Business
- Malay Mail
Penang Opposition leader wants fiscal recovery plan to address revenue shortfall
GEORGE TOWN, May 21 — Penang Opposition Leader Muhammad Fauzi Yusof today pressed the state government for a five-year financial recovery plan to address what he described as a fiscal crisis currently facing the state. The Sungai Dua assemblyman said that the state government must review and balance its critical and non-critical spending while improving its administrative structure and procedures. 'The state government must not use oppressive policies, such as raising quit rent rates that burden the people of Penang, in order to increase state revenue,' Fauzi said at a press conference held outside the state legislative assembly today. He was referring to a reply by Penang Chief Minister Chow Kon Yeow in the assembly, which mentioned plans to raise state revenue streams through the collection of quit rent arrears amounting to RM6 million, selling state lands, and reviewing various fees and charges. Fauzi cited the Auditor-General's Report from October 2024, which he said indicated a drastic decline in the state's financial performance, in which the revenue account fell 52 per cent in 2023 from the year before while the consolidated trust account showed a 2.9 per cent decrease. 'This comparison is highly unbalanced, especially when the state government's expenditure increased by 13.9 per cent while state revenue decreased by 0.4 per cent (in the same period),' he added, highlighting the disparity. Fauzi warned that if this situation continues, Penang would face a critical cash flow risk. 'This will jeopardise the state's ability to manage its funds and administrative expenses, including the salaries of civil servants in the state,' he said. Yesterday, another opposition assemblyman, Yusni Mat Piah (PAS-Penaga), also questioned the state's decision to purchase new cars for state executive councillors and officials while allegedly facing a fiscal crisis. Chow is expected to address these concerns regarding the state's financial situation during his winding-up speech at the state legislative assembly tomorrow.
Free Malaysia Today
19-05-2025
- Business
- Free Malaysia Today
Request for proposal for Penang water taxi service cancelled
In 2021, MBPP identified four suitable jetties that could be used as pick-up and drop-off points for the water taxi service after a preliminary study. (Bernama pic) GEORGE TOWN : The Penang Island City Council (MBPP) has agreed to cancel its request for proposal for the proposed water taxi service as the company involved has failed to secure approvals from the transport ministry. State infrastructure, transport and digital committee chairman Zairil Khir Johari said MBPP's procurement board issued the cancellation letter on April 17 following the firm's failure to comply with the letter of intent for the project. 'At present, the state government is in discussions with the ministry to review the terms and feasibility of this project in greater detail. 'If the RFP is reopened in the future, the state government hopes that interested companies will be truly prepared and capable of fulfilling all the required conditions,' he said in a written reply to Teh Lai Heng (PH-Komtar) regarding the proposed water taxi service. Zairil said two companies had submitted proposals and several presentations were held before the RFP technical evaluation committee. MBPP then issued the letter of intent to the selected company. However, the company needed to obtain further approvals from various agencies like the marine department, Penang Port Commission, and district and land office, among others, before a letter of acceptance could be issued. In 2021, MBPP had conducted a preliminary study and identified suitable jetty locations that could be used as pick-up and drop-off points, with four locations proposed for the water taxi service.
Malay Mail
16-05-2025
- Business
- Malay Mail
Penang governor urges Putrajaya to fund Pan Island Link 1 project for improved traffic management
GEORGE TOWN, May 16 — The Penang Yang diPertua Negri, Tun Ramli Ngah Talib, has urged Putrajaya to approve funding for the state's Pan Island Link 1 (PIL1) project under the 13th Malaysian Plan. He said the state government has applied for funding for the project under the first rolling plan of the 13th Malaysian Plan, and the application is currently under consideration. 'I wish to call on the federal government to give consideration to PIL1 as this project is expected to give a positive impact in terms of traffic management and dispersal in Penang,' he said in his speech at the state legislative assembly today. He expressed gratitude to the federal government for its financial support for other mega projects in Penang, including the Juru-Sungai Dua Elevated Highway, the Mutiara Light Rail Transit (LRT) project, the Sungai Perak-Penang water project, and the expansion of the Penang International Airport (PIA). 'Besides that, I was made to understand that the Silicon Island project, which started on September 22, 2023, has shown positive developments,' he said. As of April 25 this year, a total of 150 acres have been reclaimed, he said. 'With a targeted overall reclamation of 2,300 acres, this project is now 6.5 per cent complete,' he said. He added that the project will bolster Penang's position as one of the nation's main economic drivers and its role in the country's development. Penang's economy recorded a growth of 3.3 per cent in 2023, with a gross domestic product (GDP) of RM116 billion. 'This achievement is supported by two main sectors: the services sector (48 per cent) and the manufacturing sector (46.5 per cent),' he said. Penang has remained one of the six main contributors to 73 per cent of the national GDP. 'Penang also recorded the highest GDP per capita at RM72,586,' he said. In international trade, he said Penang recorded a total trade volume of RM788.1 billion in 2024, an 11.6 per cent increase compared to RM696.7 billion in the previous year. The state has also continued to uphold and promote Islamic values, he said, citing the development of the KITAB Smart City Campus in Bandar Cassia, Batu Kawan. 'This is a large project that will bring about long-lasting impact,' he said. The project, located on 17.3 acres of wakaf land, includes the construction of a mosque and Islamic centre, a commercial centre, student accommodations, and Kolej Islam Teknologi Antarabangsa Pulau Pinang (KITAB). On the state's water supply system, he said the Penang Water Supply Corporation (PBAPP) has invested RM1.185 billion in its Water Contingency Plan 2030 to meet increasing water demands by 2030. 'The long-term plan is the Sungai Perak treated water transfer project, which will meet water demands until 2050,' he said. He noted that the project would benefit Penang and northern Perak through the Taman Perindustrian Hijau Bersepadu Kerian (KIGIP). Two new bills, the Penang Water Resources Board Bill 2024 and the Penang Water Resources Bill 2025, will be tabled at this sitting of the state legislative assembly, he said. The aim of the bills, he added, is to strengthen the state's water resource management through the establishment of the Penang Water Resources Board.
