Media statement by Lim Guan Eng in Komtar, George Town on Tuesday, 29^th May 2012: 

Number of stop work orders prove PR Penang State Government more stringent and unforgiving to developers than BN  

Facts have disproved BN's claims that the Penang PR state government is the darling of developers at the expense of the public, especially those who need public housing. This can be shown by the number of stop work orders issued by both Penang Municipal Council(MPPP) and the Seberang Perai Municipal Council(MPSP) over the four years before and after 2008.

Under PR, MPPP issued 259 stop work orders from 2008 till 2012, which is nearly 7 times more than the 38 stop work orders issued for the same period between 2004-7 under BN. MPSP issued 11 stop work orders from March 2008 until 2012 May whereas not a single stop work order was issued from 2003 till March 2008.

If given a choice, some developers would prefer the BN government which rarely issued stop work orders, especially in MPSP where not a single stop work order was issued. The huge increase in the number of stop work orders issued proves that the PR Penang state government is more stringent in upholding the rule of law, demanding strict compliance with technical requirements and more unforgiving than BN.

However I would like to stress that the PR state government is business-friendly. Penang welcomes all investors and businessmen provided they comply and obey the rules. There is no culture of corruption in Penang, open competitive tenders are practiced and technical know-how is preferred over technical know-who. There is no point in trying to claim a close relationship with the EXCO or even the Chief Minister as rules are more important than any "friendship" with state leaders.

Further, BN's claims that the prices of property in Penang has risen because the state government has increased land premiums is false as the Penang Land Office has maintained the land conversion rates at the same percentage rates as the previous BN state government. Property prices are determined by market forces of supply and demand and public confidence in the state government. No governments in the world, including China and US, can force the property market to rise or fall in value.

The Penang state government has acknowledged the rise in property prices due to rising public confidence in the CAT administration of competency, accountability and transparency, which has resulted in record budget surpluses yearly and also a record debt reduction of 95%. To ensure that there are sufficient affordable housing, the state government has allocated a minimum RM500 million. This is the largest amount for affordable housing allocated by any state government in Malaysia. Under Phase 1 of the affordable housing programme, 12,000 units will be built in Batu Kawan, Seberang Perai Selatan. Phase 2 in the remaining four districts around Penang will see another 6,000 units of affordable housing being built.

Apart from the total 18,000 affordable housing proposed by the state government through state agency Penang Development Corporation(PDC), the private sector is expected to contribute another 20,000 units in affordable housing. Like the Federal government through Syarikat Perumahan Negara Berhad (SPNB), the state government does not build any low-cost and low-medium cost houses, but leaves it to PDC. Since 2008, PDC had built 3,806 units whilst the private sector had built 7,790 units for a total of 11,596 units.

There is an element of double-standards from BN which does not highlight that a bungalow unit in Johor Iskandar costs RM 3 million and is bought by foreigners, including Singaporeans. Unlike in Johor, Penang has boldly taken the lead by imposing a limit of all property purchases by foreigners in Penang to above RM1 million and landed properties in Penang island to aboe RM2 million beginning on 1 July 2012.

*Lim Guan Eng, Penang Chief Minister