THE alignment of the grant allocation for Penang state agencies, subsidiary companies and statutory bodies has raised concerns over the state’s financial position.
Former Penang Chief Minister Lim Guan Eng said the grant allocation for 25 state agencies, subsidiary companies, and statutory bodies this year (2024) was reduced from RM98.5 million to RM76.368 million following an alignment exercise.
“Alignment in financial terms often refers to reviewing the allocated resources,” he told a press conference on the sideline of the State Legislative Assembly today.
Also present were Air Itam assemblyman Joseph Ng, Berapit assemblyman Heng Lee Lee, Batu Lancang assemblyman Ong Ah Teong, Bagan Dalam assemblyman Kumaran Krishnan, and Bagan Jermal assemblyman Chee Yeeh Keen.
Lim, who is the Air Putih assemblyman, said the alignment of the grant allocation was a cause for concern.
“The Yang di-Pertua Negeri Tun Ahmad Fuzi Abdul Razak has also urged the state government to intensify efforts to enhance state revenue sources,” he added.
Referring to the written reply from Chief Minister Chow Kon Yeow, Lim noted that the Penang State Sports Council (MSNPP) saw the most significant reduction in grant allocation following the alignment – an RM5 million reduction.
“I presented some suggestions on how to enhance the state’s revenue during my debate yesterday,” Lim said.
Lim emphasised the adoption of the CAT (Competency, Accountability and Transparency) practices as well as highlighted the opportunity for financial alignment and optimisation.
“The CAT policy mandates the implementation of open tenders. Open tenders can maximise revenue or reduce costs while eliminating perceptions of misconduct or favouritism towards certain cronies.
“Secondly, CAT governance mandates thorough monitoring, supervision, and professional management of projects,” Lim said, stressing the need for efficient, effective, and high-quality work performance.
He also necessitates investing in the future through digitalisation.
Replying to questions from journalists, Lim said the state government could try to apply for ex-gratia grants from the Federal Government.
“The Penang government can attempt to apply for ex-gratia grants from the Federal Government, but these are not easy to obtain. The Federal Government has given ex-gratia grants to Kelantan before.
“Penang has never applied for ex-gratia grants. It is up to the Penang government to decide on the matter,” he said.
Lim believed that the state could still manage its financial obligations, including civil servants’ salaries.
“I believe that Penang could still afford the salary increment for the civil servants in Penang (as per the announcement by Prime Minister Datuk Seri Anwar Ibrahim).
“The pay hike is expected to incur the Penang government an additional cost of RM36 million.
“I trust that the situation has not reached a point where the Penang government cannot afford to pay its civil servants’ salaries,” Lim said.
Story by Christopher Tan
Pix by Ahmad Adil Muhamad