Press Statement by Lim Guan Eng in Penang on Monday, 7^th July 2008: 

The Penang State Government is willing to take RM 4.7 billion cash to replace the cost of projects cut off from the Ninth Malaysian Plan (9MP) so that the Prime Minister can prove that he did not act in an unjust act of political vengeance to punish Penangnites for selecting a new DAP-PKR coalition Government  

Second Finance Minister Tan Sri Nor Mohamad Yakcop is trying to distract attention away from the Federal Government’s victimization of Penang by claiming that the Penang state government is too obsessive with mega projects such as building the monorail system. Such attacks by Tan Sri Nor only shows his guilty conscience at being exposed for not loving his home state by supporting the drastic cut in development funding for Penang by RM 4.7 billion.

Tan Sri Nor should realize that unlike the previous docile state government, the new state government is a people’s government. The new Penang state government leaders will refuse to be treated by the Federal government like a doormat that is “weakened, trampled and ineffective” (as stated in the blog Faith Journey http://www.christian-journey.com/on-doormats/). Any government leader who loves Penang would be upset when projects in Penang are cancelled in an arbitrary and high-handed manner without consultation or justification.

Further these cancelled projects amounting to RM 4.7 billion below were not substituted with new projects:-

• RM 2 billion monorail project;
• RM 1.5 billion Penang Outer Ring Road (PORR) project
• RM1.1 billion Mengkuang Dam expansion project; and
• RM 100 million in other smaller projects such as the RM 40 million upgrading works on the Bukit Bendera funicular train.

Nor Mohamed said the state goverment ought to focus not on these projects but on improving the economy. I wish to tell him that the Penang state government is willing to take RM 4.7 billion cash to replace those projects cut off From The Ninth Malaysian Plan (9MP) so that the Prime Minister Datuk Seri Abdullah Ahmad Badawi can prove that he did not act unjustly out of political vengeance to punish Penangnites for their choice in March 8 general elections in selecting a new DAP-PKR coalition Government.

However there is no word from either the Prime Minister or Tan Sri Nor Mohamad Yakcop of giving RM 4.7 billion cash as a replacement to allow Penang to focus on other projects that can benefit Penangnites to reduce the financial burdens brought about by high prices. Is that not political vengeance for cutting down development funding for Penang at the same time that the Federal government is increasing funding for the 9MP by 15% or RM 30 billion from RM 200 billion to RM 230 billion?

As compared with other states, Penang’s original allocation under the 9MP of RM 6,152 million constituted 3.1% of the total allocation under the 9MP of RM 200 billion. Following the Mid-Term Review, Penang’s share in total allocation under the 9MP of RM 1,452 million constitute only 0.6% of the increased total allocation of RM 230 billion. Both the Prime Minister and Tan Sri Nor must explain the 80% drop in % share of total allocation for Penang as compared to other states from 3.1% to 0.6%? Any failure to properly explain or justify is a clear and unequivocal signal of singling out Penangnites for punishment.

Penang is willing to accept cash of RM 4.7 billion to focus on agricultural development to focus on food economics and security as a replacement. After all, Penangnites also pay tax and it is only fair that the Federal government gives back some of what it takes as it would be a gross injustice to only know how to take but not to give. The question for Tan Sri Nor is how is he helping to develop Penang when he supports the reduction of such funds and removal of projects. If he refuses to refund in cash the RM 4.7 billion taken away from Penang, isn’t such actions tantamount to trying to undermine or even “sabotaging” Penang’s economy.

The Penang state government shall await a final reply from the Prime Minister on the letter handed personally by me to review his decision to cut off these projects from Penang before proceeding with alternative plans. Such decisions have given the impression that both the Prime Minister and Tan Sri Nor deliberately wants Penang economy to fail. But Penang people will prove them wrong by demonstrating our self-reliance, resilience and ability in accordance with the governing principles of CAT- competency, accountability and transparency.

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* Lim Guan Eng, Penang Chief Minister & DAP Secretary-General