Holistic budget but lacks substantial progress

Penang's 2019 Budget announced by Chief Minister Chow Kon Yeow at the State Legislative Assembly yesterday is holistic, reflecting the leader's 10-year vision Penang 2030 for the state.

Last year's GDP increase of RM3.9 billion to RM77.6 billion, GDP per capita of RM49,873 that is above the national rate, and the receipt of RM10.8 billion of investment indicate Penang's economic health.

The aim to plant 100,000 trees in the next five years (after having planted more than 618,000 trees in the last 10 years), the allocation of RM5.2 million for next year's environmental programmes, the RM10 million fund to strengthen hillslopes, the hundreds of million of ringgit for flood mitigation, the construction of RM61.5 million waste management station, and the RM1 million fund to facilitate cooperation with UN Habitat to work towards the Sustainable Development Goals are commendable to improve the standard of liveability.

Many other programmes and initiatives to help the local small and medium businesses, to boost the tourism, agricultural, and aquacultural sectors would further ensure the provision of jobs and gradual development for Penang.

Although the budget is holistic in diversifying the state's 2019 allocation in various sectors, there is a lack of substantial development plan. This may further reduce Penang's median household income at the national level.

Penang has fallen two ranks since 2014, overtaken by Melaka and Johor. In 2012, Penang was ranked number five, tailing behind Putrajaya, Kuala Lumpur, Selangor, and Labuan. By 2014, Penang came to number seven and has remained so in 2016.

Median Household Income By State, 2009-2016¹



One of the factors that elevated Johor and Melaka above Penang is the multi-billion ringgit investment projects that were initiated, helped by the former federal government.

For example, Petronas' RM105 billion Pengerang Integrated Complex in Johor and the RM43 billion Melaka Gateway under the National Key Economic Areas have attracted investments from around the world, providing high-quality, high-paying jobs for the locals.

As a result of these and other 'gamechanger' projects, the median household incomes in Johor and Melaka have increased and overtaken Penang.

Although the overall 2019 Budget for Penang is holistic, it lacks concrete initiative that will provide substantial progress for the state.

The Penang Transport Master Plan and its South Reclamation Scheme could be the gamechanger projects that Penang needs for exponential economic growth. It is unfortunate that the projects are being opposed and sabotaged by short-sighted individuals. They may not need income increment but they do not represent the rest of us in Penang.

Johor and Melaka have overtaken Penang, while other states are following closely behind. Therefore, we at AnakPinang demand the Penang state government restore Penang's competitiveness and increase the median household income of the rakyat. Preserving the environment is important, so is providing good jobs for the people. Only by doing so can we prevent our young Penangites from migrating to other states, if not overseas, for better prospect.

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