Malaysia

Penang exco to deliberate salary cut proposal

Redirected funds likely to go towards food for the needy, PPE for frontliners

Updated 5 years ago · Published on 25 Nov 2020 7:53AM

Penang exco to deliberate salary cut proposal
Chief Minister Chow Kon Yeow had earlier this year taken a salary cut alongside Penang's legislators and redirected the money to a Covid-19 fund. – Bernama pic, November 24, 2020

by Rachel Yeoh

GEORGE TOWN – Penang's state executive council will today discuss a proposal to deduct the salaries of its councillors as an act of solidarity with its people affected by the Covid-19 pandemic and its economic fallout.

A source told The Vibes that this is not the first time a salary cut is being considered.

The source said such a pay cut will likely contribute towards the purchase of food for the needy and personal protective equipment (PPE) for frontliners.

During the initial wave of Covid-19 infections earlier this year, the state’s elected legislators, including Chief Minister Chow Kon Yeow, had taken a month's salary cut to start a fund to aid those hit by the adverse impact of the pandemic.

Among the worst hit are workers in the leisure industry. The state is looking at ways to mitigate the damage as tourism plays a major part in the services sector, the second largest contributor to Penang's gross domestic product after manufacturing last year.

Chow had told journalists last week that the executive councillors were considering a pay cut, similar to when the 40 assemblymen – opposition included – donated 30% of their March salary to the state’s Covid-19 fund. 

The executive councillors then donated their April salaries to the fund as well.

Chow and the executive councillors have had their salaries cut by 10% since June, with the savings channelled to the Tabung Harapan Malaysia (THM) trust fund.

Over on the east coast, Kelantan's state assembly unanimously approved an increase in the salaries of its assemblymen through an amendment to the Administration and Members of the State Assembly (Remuneration) Enactment 1980 recently.

The executive councillors and 45 assemblymen stand to get an increment of between RM3,000 and RM5,000 a month.

Deputy Menteri Besar Datuk Mohd Amar Nik Abdullah had reportedly said the responsibilities of the elected representatives were getting more challenging as people become more dependent on them to deal with the Covid-19 pandemic.

He added this was the right time for them to receive an increment as they were among those with the smallest salaries compared with other states.

Covid-19 cases in Kelantan have spiked of late. The Kota Baru district is now a red zone and 10 others are classified as orange or yellow zones.

Health authorities have warned that if the state is not careful, infection rates in Kelantan will reach a critical a state similar to Sabah in a few weeks. – The Vibes, November 24, 2020

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