MCA asks Penang CM to for state's financial statement

MCA asked the Penang chief minister today to provide a detailed statement of the state's finances and how he proposes to raise revenues.

Penang MCA chairman Datuk Tan Teik Cheng said the state government must explain why it was perennially reporting a financial deficit without looking for a solution to to the problem.

“At the recent Penang assembly, Air Putih assemblyman Lim Guan Eng and Penang executive councillor Lim Siew Khim expressed their concerns over Penang’s finances. In fact, over the past few years, the (budget) deficit has continued to rise, thereby forcing it to resort to state reserves to make up for the deficit," Tan said.

He said it was also revealed at the assembly that funding for 25 state government subsidiaries and statutory bodies has plummeted by 22%, raising concerns over Penang's financial situation.

Lim had also pointed out that Penang's consolidated fund had dwindled to only RM330 million in 2023, from RM1.16 billion in 2019, he said.

“This means (the fund) had nosedived by RM825 million over the years which is clear evidence that Penang's finances are in a crisis. Chow (Kon Yeow) can no longer conceal the facts and must publicly explain where Penang's financial problems lie and the solutions that the state government will undertake. The reduced allocations to government agencies will affect their operations,” he said.

Lim had said that because of the state's straitened finances, only the needy would receive i-Sejahtera aid.

Tan said this showed that the welfare of Penang residents had been affected. 

“The state government must find methods to tackle the insufficient income and the financial deficit it faces. If the state government does not actively address this issue, it may not have the ability to assist needy people in the future,” he said.

Tan said the state government must lower expenditure and make efficient use of resources to achieve the best results.

“At the same time, it must also seek more funding from the federal government and not neglect the welfare of the Penang people." – May 30, 2024.