GEORGE TOWN, Nov 2 — DAP’s Air Putih assemblyman Lim Guan Eng has urged the Penang government to defer increases in land tax, water tariffs and other fees until the end of its term, saying the state’s improved financial position should allow it to avoid placing further pressure on residents and businesses.
Debating the 2027 Supply Bill and Development Estimates in the Penang State Legislative Assembly today, Lim said he supported the RM1.074 billion state budget, noting that the Consolidated Revenue Account balance had increased from RM522.87 million at the end of 2025 to RM651.28 million as at October 30 this year, while Penang’s gross domestic product grew 7.3 per cent to RM130.3 billion in 2025, compared with national growth of 5.2 per cent.
He said the budget’s theme, “Bringing the Vision Closer to the People and Forging a Legacy”, should translate into tangible benefits that would make life easier for the public, adding that the state should not risk losing public support by prioritising its legacy over people’s needs.
Lim also welcomed the appointment of new state secretary Datuk Dr Jafri Abdul Jalil, effective August 3, 2026, and thanked his predecessor Datuk Seri Zulkifli Long for his service.
Lim said ordinary people and micro, small and medium enterprises were facing challenging economic conditions and should not have to contend with higher taxes and compliance costs, pointing to land tax collections rising from RM116 million in both 2024 and 2025 to RM165 million as at September this year, an increase of RM49 million in nine months despite the payment deadline being extended to the end of 2026; he also cited national GDP growth of six per cent in the second quarter of 2026 and a 13.5 per cent increase in the banking sector’s pre-tax profits, from RM48.3 billion in 2024 to RM54.8 billion in 2025.
He also called on the state government to provide the remaining RM500,000 for road widening and safety improvements at Pintas Berani 5 near SJK(C) Kwang Hwa in Bagan Jermal, saying the RM1 million approved by Local Government Minister Nga Kor Ming would widen the road from one lane to two and that the additional allocation was needed to improve safety for the school’s 1,118 pupils, teachers and other road users; he said the state only needed to contribute half the project’s remaining cost and that the funds had already been channelled to the Seberang Perai City Council.
On water supply, Lim urged the state government to table its bulk water supply agreement with Perak’s Prasarana Air dan Irigasi Perak Sdn Bhd in the state assembly for debate and approval, saying the 40-year arrangement from 2032 carried an estimated cost of RM24.6 billion up to 2072, comprising RM8.4 billion in infrastructure capacity charges and RM16.2 billion in water supply charges; he said the agreement should be made public and that the state should seek Perak’s consent to disclose its terms even if a non-disclosure agreement was in place, as Penang residents would ultimately bear the cost.
Lim also proposed an independent state commission of inquiry into the October 25 slope collapse at Taman Seri Rambai, Paya Terubong, which killed 73-year-old doctor Wong Kar Lin and led to the immediate evacuation of six nearby homes, saying those responsible should be held accountable; he disputed claims that the project had been approved during his tenure as chief minister from 2008 to 2018, stating that planning permission was granted in 2023 and earthworks and building plans in 2024, when he was no longer chief minister or finance minister, and said the allegations had been circulated on eight websites and referred to his lawyer for legal action.
Turning to the proposed 70-acre reclamation project off Persiaran Karpal Singh, estimated to cost RM1 billion, and the agreement to rehabilitate the 84-acre Jelutong landfill, Lim questioned why the agreement had not been cancelled after the contractor’s applications were rejected five times by the Department of Environment, despite an October 18 deadline set by the chief minister; he also asked why extensions had been granted for more than six years since the agreement was signed on February 21, 2020, how much the contractor still owed the Penang Development Corporation and state government, and why the reclamation project was proceeding without a signed agreement.
Citing the Auditor-General’s Report 2026, Lim criticised the Penang Development Corporation’s handling of the Jalan Perusahaan-Jalan Tok Kangar road and bridge upgrading project, saying the combined cost of RM63.4 million for its two phases — RM10.6 million for Phase 1 and RM52.8 million for Phase 2 — was RM20.4 million, or 47 per cent, above the original RM43 million estimate; he said the audit found that Phase 2 had taken more than seven years after its open tender was awarded on July 12, 2019, that delays reached 2,278 days and that RM3.12 million in progress payments had been made to a replacement contractor before a formal contract was signed, while PDC had still received a six-month bonus for 2024, paid in February 2025.
He also questioned PDC’s ability to undertake the proposed 1,142-acre Batu Kawan Industrial Park 2 development, of which 872 acres would be available for investors, asking whether the project should instead be opened to private-sector participation; Lim cited the sale of 559 acres of PDC land at Byram, Batu Kawan, for RM646 million through a direct deal without an open tender, compared with a subsequent open request for proposal offering RM818 million, or RM172 million more, and argued that a private-sector partnership could bring in funds sooner and accelerate development.
On economic prospects, Lim said Penang and Malaysia had benefited from geopolitical and economic tensions between the United States and China, as well as the impact of US President Donald Trump’s tariffs, with foreign investment and exports reaching record levels, particularly in electronics; he welcomed the federal government’s RM100 million allocation approved by Prime Minister Datuk Seri Anwar Ibrahim for the Penang Technology Financial Centre, which he said could build on the state’s technological strengths in digital development, artificial intelligence and new forms of trade.
However, Lim said economic growth was uneven and some sectors continued to face difficulties, calling for a separate Special Financial Zone to attract foreign funds and activities involving cryptocurrency, fintech and digital finance, which he said fell outside the Penang Technology Financial Centre’s focus on technology, start-ups and AI; he proposed a 40-hectare site at Ampang Jajar between the Bagan and Permatang Pauh parliamentary constituencies, near public transport links including the planned LRT station at Penang Sentral, expected to be completed in 2032, saying this would help balance development between Penang island and Seberang Perai.
Date: 2 November, 2026 2:05 pm
Source: Malay Mail
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