BN Penang and Teng Chang Yeow must bear full responsibility if they cannot stop BN Federal Government from approving a new international airport in Kulim

Recent remarks by Minister of International Trade and Industry Datuk Seri Mustapa Mohamad that the BN Federal government is giving serious thought to Kedah Menteri Besar Datuk Seri Mukhriz Mahathir’s proposal to build a new international airport in Kulim because an airport would catalyse development in surrounding areas, appears to indicate that this is already a done deal.

BN Penang and its Chairman Teng Chang Yeow must be warned to bear full responsibility if they cannot stop BN Federal government from approving a new international airport in Kulim for RM 1.6 billion without carrying out any upgrade expansion urgently needed for the Penang International Airport. This is a consequence of the crisis of identity and divided authority within Penang BN exemplified by Teng opposing but yet Penang UMNO supporting the Kedah MB’s proposal to build a new international airport in Kulim. Which head is calling the shots – Teng or Penang UMNO?

The inability and failure of Teng to instruct UMNO Penang to toe the line and oppose the new international airport in Kulim shows that Teng is no different from previous Gerakan leaders of being a Chief Minister or BN Chairman without powers whatsoever. The tradition of Penang BN Chairman unable to exercise any control or authority over Penang UMNO leaders has only made it easier for UMNO to arrogantly make major decisions as they like without consulting Gerakan.

Teng has opposed a second runway for Penang international airport on the basis that air cargo freight has been declining in Penang. The graphs below show that a decline in air cargo tonnage does not correspond with declining investments but may even correspond with increased investments. This disconnect is caused by a time lag between investments and the period needed to set up the factory to produce finished goods for exports.

This disconnect is proven by the air cargo freight at 225,952 metric tonnes when investments is only at RM 5.4 billion in 2006, whilst in 2010 air cargo freight dropped to 147,057 metric tonnes even though investment was the highest at RM 12.2 billion. However in 2012 air cargo freight rose to 153,703 metric tonnes even though investment was lower at RM 3.9 billion.

Teng is clearly missing the wood from the trees or even barking at the wrong tree when he opposes building a second runway for Penang. Further the encouraging growth in tourism has resulted in 5.5 million passengers and would reach the capacity of 6.5 million by next year.

There is a clearly need for a second runway and Teng should help advance the interests of Penang by changing his stand to support a 2nd runway for the Penang International Airport. What other reason other than taking revenge and vindictively punishing Penangites for rejecting BN by spending RM1.6 billion to build a new airport in Kulim with 2 runways but not RM600 million build a 2nd runway with an integrated air cargo facility and a Maintenance, Repair and Overhaul (MRO) hub for Penang International airport?

Instead of answering with logical reasoning, why he opposes an additional runway for an established international airport like Penang when Kedah can seek RM1.6 billion to build a new international airport with 2 runways, Teng has tried to divert attention by questioning declining investments in Penang. I have replied in a written statement two days ago but my response was not published by one major Chinese newspaper and the BN controlled Malay/English mass media. I make the following response to rebut the false picture by Teng of investment leaving Penang in droves, in the hope that the BN media and the one major Chinese newspaper will also give me the right of reply.

For the 6 year period under PR rule from 2008-2013, Penang recorded an investment of RM 40,049 million which is nearly double BN’s total 6 year figures from 2002-7 of RM 21,095 million.

Penang is proud of what we had achieved in making Penang as a location of choice of investors in Malaysia. For the 6 year period under PR rule from 2008-2013, Penang recorded an investment of RM 40,049 million which is nearly double BN’s preceding 6 year figures of 2002-7 amounting to RM 21,095 million.(see graph). Any measurement over a period over 6 years is a more accurate evaluation than year by year comparison.

Investments & Potential Employment in Penang

Teng also claims that the poor performance in attracting investment by BN as compared to PR can be explained by the higher land cost under PR. Land costs comprise a small component of investment. During the period 2008-2013, when PR attracted RM 40,049 million in investment, the value of industrial land sold by PDC amounted to only RM 875 million.

This RM 875 million is only 2% of the total investment of RM 40,049 million. Clearly, Teng is not telling the truth when he claimed that the investment figures of 100% more than BN over the corresponding period is caused by higher land prices when land costs comprise only 2%.(see below)

INDUSTRIAL LAND SALES 2008-13

And yet BN continues to criticize the state government for any drop in investments last year but when investments go up the following year, BN claims credit instead. Let the people of Penang decide whether it is for BN to blame the state government when investment goes down but then ignore the state government and claim credit when investment increases.

Attrcting investment should not be equated to a badminton game but a serious strategic effort based on generating investor confidence. For BN to question falling investor confidence in Penang is at best ignorant and at worst a pretence of being unaware that Temasek Holdings had just signed a joint-venture agreement to develop a High Technology Industrial Park valued at RM11.3 billion for the manufacturing and services sector. Teng should look in the mirror and honestly ask himself why Temasek did not sign any similar joint-venture agreement to invest in Penang during BN’s rule?

BN should drop all pretence and concede that PR performed much better during our 6 years in power with RM 40,049 million in investments as compared to the BN’s previous 6 years of RM 21,095 million. With PR’s RM 40,049 million in investments that is double that of BN, air cargo movement is expected to rise requiring a second runway for Penang.

The Penang state government has received little to no cooperation from federal government agencies. Major development projects such as privatizing Penang Port or the Royal Malaysian Air Force Base in Teluk Air Tawar by Federal government is done without consulting or informing the state government. There are even no replies to our formal letters on many issues.

Teng should not pretend and behave dishonestly by questioning why the state government does not engage with the Federal government. The challenges for Penang will only increase with Kedah now openly using its political connections with the Federal government to undermine Penang’s competitiveness.

Penang is not afraid of competing with another new international airport in Kulim provided it is done on a level playing field by giving us an additional runway, integrated air cargo facility and MRO hub. If after the RM600 million upgrade expansion of the Penang Airport, the BN Federal government can still go ahead with building a new airport in Kulim for RM1.6 billion if it deems necessary. The question is still whether Teng and UMNO Penang will support Penang’s International Airport upgrade expansion proposals with deeds rather than empty words to compete fairly with the proposed new international airport in Kulim.