FORMER Penang Chief Minister Lim Guan Eng has raised concerns over the financial status of the state and its development arm - the Penang Development Corporation (PDC).
Lim (Air Itam-PH), said that his concerns stem from the revelation that Penang was facing a ‘cash crunch’.
To overcome the financial pitfalls, Lim suggested that the state entice more involvement from the private sector to further stimulate the economy.
He thanked the Federal Government, which last year, accorded the state with an advance of RM100 million to ensure that the cash flow was sustainable here.
Also, a cash infusion is needed because Penang needs to spend to prepare for the mega infrastructure projects such as the Mutiara Light Rail Transit (LRT) project, the expansion of the Penang International Airport and the overhead highway from Sungai Dua to Juru.
The former finance minister said the state needs to clarify how the financial status of Penang eroded until the state Consolidated Fund was reduced from RM1.15 billion in 2019 to less than a billion in 2024.
"The state needs to fully explain there the money went to and what it was spent on," said Lim.
He added that efforts to enhance the collection of tax and revenue for the state should be welcome.
"But it should not come at the expense of the aid pledged previously to those who are eligible."
Lim also pointed out that one of the suspected reasons why the state faces a cash flow issue, was the outstanding debt of RM300 million to the PDC.
In 2023, the chief minister (Chow Kon Yeow) mentioned that the state did not owe anything to PDC but in less than two years, it was then stated that the state owes PDC hundreds of millions, he said.
The state sitting was given misleading information about this matter, Lim claimed.
He pressed on that the state's economy registered a growth of 3.3% in 2023, which was lower than the national GDP average of 3.6%.
Lim hoped that the state GDP for last year, would surpassed the national average of 5.1%.
Lim also claimed that PDC is embroiled in another controversy following the delay of the expansion from Jalan Perusahaan to Jalan Tok Kangar in Bukit Mertajam.
It was supposed to be completed by 2021, but it was apparently delayed.
Lim said that despite the controversies surrounding the arm, PDC was rewarded with a payout of a six-month bonus by the state.
"Does this sum justify the performance of PDC?" Lim asked. - May 20, 2025.
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