(Penang, Sunday): The NCER expects to attract RM 177 billion in investments in 19 years and Abdullah said that nearly RM 60 billion will come from the government. The question is how much of this RM 177 billion in investment is earmarked for Penang and the other states. Compared with Johor’s Iskandar Development Region (IDR) with RM 383 billion target over 20 years for Johor alone, Penang has clearly lost out in the race for foreign investment by having to share RM 177 billion with three other states of Kedah, Perlis and  Perak. 

DAP is puzzled how Prime Minister Datuk Seri Abdullah Ahmad Badawi can launch the RM25 billion PGCC on 12.9.2007, when it has not been even approved by the local authorities. Yesterday, Penang Island Municipal Council president Datuk Zainal Rahim Seman said that PGCC had submitted the layout plans recently and would be approved next month. 

By asking the Prime Minister to launch the project even before approval is obtained is not only premature but a disturbing development. Does this indicates a troubling dependence on using high-level connections that ensure either compliance or that the local authority do the right thing? 

Equally troubling is the Prime Minister’s eagerness to see the PGCC start work fast and remarks that since the developer, Abad Naluri Sdn Bhd, had presented such a good plan. He even directed the state government to fast-track any pending approvals that will hold up implementation. How are the local authorities going to do an independent and careful consideration of the developer’s plans to protect the interest of Penangnites when there is such heavy-handed “instruction” given by the Prime Minister? 

Why has the public not been consulted, especially existing residents worried about traffic congestion and higher population density as well as those seeking more green parks? The project, to be undertaken by Abad Naluri Sdn Bhd, an associate company of Equine Capital Berhad, will be built on the existing 104 hectare Penang Turf Club land in Batu Gantong acquired for RM488 million from Penang Turf Club in 2002 and will take 15 years to complete the project. 

Is the Prime Minister’s support the reason why this 104 hectare piece of land can be so easily converted from the existing “open space” to ''mixed development''. By allowing the rezoning, the developers will profit handsomely in billions of ringgit from a thundering rise in land valuation.  

There has been public alarm at the massive urban development project that could result in 33 tower blocks of over 40 storeys each being built on one of the last huge green spaces left on land-starved Penang island. The PGCC proposes a built-up area of 2.5 million square meters and will include 7,000 upmarket homes as well as hotels, commercial areas, a performing arts centre and ''two iconic towers''.  

With 7,000 homes, clearly the population density will not only be higher but only for the wealthy. How will the ordinary Penangnites and those who can not afford such expensive homes benefit or will they be left out and marginalized.  

That is the reason why DAP is suggesting that the Penang government should form a stakeholder company to allow 1.5 million Penangnites to share in the profits. Such a stakeholder company belonging to all Penangnites would allow all profits to be channeled so that they can be used for the welfare and benefit of the common good. Why should only these crony companies of UMNO benefit from the huge profits of these projects? So far the Northern Corridor Economic Region(NCER) has benefited the few construction companies such as UEM World and MRCB which have monopolized the following major projects:-

·      RM2 billion Penang Sentral awarded to MRCB.

·      RM1.6 billion Penang monorail and the RM1.1-billion Penang Outer Ring Road (PORR) are likely to be awarded to MRCB.  

·      RM 2.7 billion Second Penang Bridge totally financed by China, already awarded to UEM World.

Under the NCER, the cost of living and property prices are going to escalate. It would be impossible for a young family to purchase a house on Penang island, with the RM 25 billion PGCC catering for the wealthy. Where would the lower-income groups on Penang Island be under the NCER? Unless they are given a stake in the stakeholder company, they will have no place, be marginalized and even driven off the island.

The government can only abolish subsidies by distributing the RM 25 billion savings to the people together with the RM 1,200 Malaysian First Bonus and RM 1,000 Senior Malaysian First Bonus

The possibility of elections being held in November 2007 is very real due to two principal reasons he wants to avoid holding it next year. One are the 10% rise in toll rates by North-South Highway and expected rise in fuel prices next year following the rise in international price of oil above US$ 80 per barrel. Abdullah had promised that there will no rise in fuel price this year but may be forced to increase fuel prices next year.  

The second reason is the danger of a collapse in international stock prices following the US sub-prime mortgage crisis affecting the local stock market. There have been many complaints about Abdullah’s poor management of the economy and the rise in the stock market is the only positive performance for Abdullah. If there is a decline in the stock market, then Abdullah has nothing good to show except for failures and breaking his promises to wipe out corruption. 

In view of the high costs from smuggling and loss of efficiency from fuel subsidies, DAP would only support the abolition of subsidies if the savings from the RM 25 billion spent on subsidies is shared with working Malaysians earning less than RM 3,000 per month. The RM 25 billion subsidies was estimated by Second Finance Minister Datuk Mohamad Nor Yaakcop based on the government spending RM 12.2 billion on subsidies in 2008 and Petronas spending RM 11.7 billion in gas subsidies for Tenaga Nasional Bhd and Independent Power Producers last year. 

This was enable every working Malaysian whose income is below RM 3,000 a month to get RM 3,000 a year to deal with rising inflation following the removal of subsidies. To ensure that every Malaysians can benefit from oil revenues earned as an oil-exporting company, DAP proposes a “Malaysia First Bonus” of RM 1,200 a year to Malaysians (a family would receive RM 2,400 regardless whether the spouse is working) with income not more than RM3,000 per month. For the elderly above 60, they will receive a “Senior Malaysian First Bonus” of RM 1,000/- a year.  

These Malaysian First bonuses and sharing of subsidies will only cost around RM 40 billion, far less than the RM 76.3 billion in gross profits earned by Petronas last year. This is even less than the RM 53.3 billion contributed by Petronas to the government this year. There is no reason why Malaysians can not benefit directly from oil revenues when Malaysia is an oil exporter and an oil importer can afford to distribute S$2,500 every year to poor families.