PENANG has decided to subsidise diesel costs for contractors involved in major development projects in the state.
This is part of the state's efforts to mitigate the rising costs borne by the private sector following the war, which has created an acute shortage of fuel in the global marketplace, said Chief Minister Chow Kon Yeow.
He said Penang Development Corporation (PDC) would negotiate with contractors who had submitted claims related to higher prices, and absorb part of the increase to ease pressure on ongoing projects.
Chow said the state might also delay projects that have yet to be awarded, as contractors struggle to bid amid rising costs.
“Projects that are already underway will continue,” he told reporters.
He also said Penang did not need to table a supplementary budget yet, as cost-saving measures could be implemented without one.
The state can weather the rising costs for now, as the state fiscal budget is in surplus due to the various efforts made earlier to diversify revenue streams.
Chow said the state’s financial position remained healthy and in surplus, provided that costs were controlled and revenue collection met expectations.
Meanwhile, the state legislative assembly sitting would commence on May 8, with the issues of rising costs expected to dominate the proceedings.
There is also a demolition of the over-century-old Waterfall Cafe, whose owner is upset that the state was overly aggressive in tearing down his restaurant.
Other issues expected to be raise is the worsening traffic congestion, which is expected to turn worse over time due to the construction of the Mutiara Light Rail Transit (LRT) project here, as well as the reclamation drive of the Silicon Island. - April 30, 2026.
