PENANG was told that it should not expect much from Putrajaya in Pakatan Harapan’s first national budget, Chief Minister Chow Kon Yeow said.

The northern state, which was opposition-held for the last 10 years, had long claimed to be sidelined by the Barisan Nasional government in past. But in PH’s Budget 2019 announcement, the state also did not get much.

Chow said he cannot say he is satisfied with the budget, but he recognised the needs of the country and the federal government’s commitment to improve the nation’s financial situation in three years.

“It is now assumed that Penang is a developed state. In line with balanced development geographically, they say Penang should not expect too much from the federal government in the current situation.

“We recognise that. We will continue to harness public, private, professional and people’s partnerships to carry out projects without using much public funds,” Chow told reporters this morning.

He said Penang’s industries has always been privately driven, with the state government getting land ready for investors to set up their operations, the International Trade and Industry Ministry giving incentives, and local small and medium enterprises supporting the ecosystem.

“We will welcome public initiatives to help grow Penang. We have been doing this for so many years. But of course if we can get federal funds, we can do more. If we get less, we will use the PPP model.”

Chow said he met Finance Minister Lim Guan Eng yesterday during a briefing, and was told there are many grants states can apply for, like the RM50 million for preschools (taska).

“We are not stopped from applying to get one, two or three million for taska. Penang will apply for all items, I told the finance minister. We will try our luck so we can get something.”

 When Lim tabled the budget on Friday, Penang was mentioned only a couple of times.

Penang’s Swettenham Pier international cruise terminal is to be made a duty-free zone, while motorcyclists using the two bridges linked to the island and mainland will enjoy toll-free rides.

Chow said there was no need for the federal government to announce funds for flood mitigation, which was already promised to Penang previously.

 On the federal government’s commitment to expand the Penang International Airport, he said the Transport Ministry was looking at restructuring airport ownership in the country.

“The ministry is looking at strategies in how to fund airport projects so the government does not have to pay fully for the works,” he said.

When tabling the budget, Lim said the government intends to set up the world’s first airport real estate investment trust (REIT) as a way for the government to securitise its infrastructure assets. 

 He said the government hopes to raise RM4 billion from selling a 30% stake in the REIT to private investing institutions. Investors will receive income arising from user fees collected from Malaysia Airports Holdings Bhd, the operator of 39 airports in the country.

 On the Penang Budget 2019, which he will table mid this month, Chow said it will be about the same as previous years.

 “We will table a deficit budget and hope for a surplus at the end of the accounting year,” he said.

 Penang has been recording surplus budgets under the DAP-led administration since 2008 under Lim’s leadership. – November 4, 2018.