Let me pretend to be GERAKANs leader in Penang and write this to DAP. --- Dear YAB Penang Chief Minister Lim Guan Eng, I was initially intrigued when I read DAPs Bukit Bendera MP Zairil Khir Johari had wanted the Federal contract to be reviewed to grant more autonomy for the states In his write-up in Roketkini, he had given a few reasons - many of which, in my opinion, were not very strong reasons. However, after Zairil replied Utusan Malaysia article that Zairil writings may have been seditious, I finally understand what Zairils article was all about. I was both pleasantly surprised and shocked. I was pleasantly surprised because Zairil was not being seditious but I was shocked that it was just all about wanting more money from Federal government. It seems that the main crux of Zairils article is in his words, “Penang contributes a lot of taxes to the federal government but we get none of it back,” GERAKAN has been observing the progress that the Penang State has made from a financial management and planning perspective since we lost that state in 2008 and we are gravely concerned. One of the reasons given by Zairil why Penang deserves more money is, I quote: Penang can only spend less than 0.5% of the national budget despite the Pakatan Rakyat (PR) state contributing half of Malaysia’s electrical and electronic exports, a third of manufacturing exports, two-thirds of medical tourism receipts and nearly a tenth of Malaysia’s GDP. Gerakan thanks Zairil for that praise. Penang is in the favourable situation as described by Zairil BECAUSE of the efforts of the past Gerakan-BN state governments since 1974 to 2008 and we achieved that within the exact same federation framework that the current Penang State government is operating under. GERAKAN notes with great concern that according to the Auditor-General report, the Annual Penang State government spending has sky-rocketed from RM283 million in 2008 to RM832 million in 2013 - a 300% increase in just 6 years and is expected to be about RM950 million in 2014. We also note from the AG report that normal operating revenues from quit rent and state taxes had been relatively stagnant with most of the revenues coming from land sales and land-related premiums. While current Chief Minister YAB Lim Guan Eng had denied Penang State opposition leader Datuk Jahara Hamids allegation that Penang state government holding of land has decreased from 12% in 2008 to 6% in 2013 but YAB Lim Guan Eng has still not released to public the details of the state land sold since 2008 and the details of the remaining state land held by the Penang State Government. However, from press releases by YAB Lim Guan Eng, what we do know is that since 2008, the Penang State government appeared to have committed to, sold or traded away at least RM10 billion worth of state land. This is besides the RM27 billion RFP that the Penang State Govt called for last year that could be paid for by granting equivalent financial rights to a massive land-reclamation project that will destroy the ecologically sensitive Middle-Banks sea-grass land. GERAKAN is deeply concerned that the current Penang State Government is running on an unsustainable model of selling state assets to fund a sky-rocketing state annual spending. GERAKAN also notes with concern that annual investment into Penang has fallen off its top position in 2010 and 2011 and had been lack-lustre from the years 2012 to 2014 - with many states now overtaking Penang. We also note that a Local Democracy Festival released last month by local Penang NGO, SUARAM and supported by the office of state executive councillor Chow Kon Yeow, who oversees the local government portfolio had very unflattering remarks about the Penang States planning decisions. The report observes that the state’s overall and specific planning decisions “seem arbitrary, destructive and devoid of any proper assessment of consequences and future, other than monetary gain. The immediate consequences include flooding and traffic, with wider ramifications for people’s health and wellbeing. It is a fact that since 2008, the Penang State Government has raised water rates 3 times, increased stall rentals to traders by up to 100% and as of Jan 1st 2015, Penangs Assessment rates have also increased - all these increases may point to a strong desire for Penang State Govt to desperately increase revenues to fund the massive increases in annual state spending. Could it be that Zairils call for more Federal tax revenue to be shared with Penang a consequence of the increasingly limited state land available to be sold, the sky-rocketing state yearly state spending and an inability of the state to plan properly? As Gerakan has strong roots in Penang and despite our lack of success in Penang in GE13, we still consider Penang as very important to Penang. Therefore, Gerakan would like to offer the Penang State Government our consultancy and assistance and form a high-level planning committee where we can share the formula for Penangs past successes in controlling state spending, investing for growth and also how we have effectively worked within the Federation framework to bring Penang to where it is today.
Posted on: Thu, 15 Jan 2015 03:37:13 +0000
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