THE Penang government has called its state budget 2018 “Belanjawan Marhaen” (a budget for the many) that covered the ordinary people, men and women, and working families, as the state “futureproof” the lives of its citizens in the new digital economy.

Chief Minister Lim Guan Eng, who tabled the state budget for next year today, announced a number of new initiatives for areas including healthcare, women empowerment, and public transport.

“This ‘Marhaen Budget’ extends the previous budgetary emphasis on the ordinary man or women in the street. The Pakatan government is reaching out to everyone, single mothers to mothers who do not work, university students, primary and secondary students and now vocational school students.

“Even fishermen who are seen as anti-government due to their opposition to land reclamation projects, needed to finance the public transport projects and LRT, have their benefits increased from being given fishing nets previously can now take RM400 cash yearly.

“The various cash payouts is distributed to all, even BN members from Umno, MCA or MIC,” he said of the state budget that is likely to be the last before the 14th general election.

I-Love-Penang card

The state is launching a new smart card for all Penangites called “I-Love-Penang card” to allow citizens to access social amenities and benefits provided by the government.

Lim said the smart card will be used to manage and distribute all government welfare programmes, including those under the i-Sejahtera, making life more convenient.

“All we need in the future is to carry the card – and maybe soon a virtual card in the form of a mobile apps installed on smartphones – to gain access to payments, benefits, and amenities.

“The card will be very useful for ordinary people, and at the same time become a powerful instrument for the government to start to incorporate big data analytics into evidence-based policy-making and public service delivery.

“The state government’s think tank, Penang Institute, will be tasked with implementing the I-Love-Penang card,” he said, adding that the institute’s budget has been increased to RM4.5 million.

Healthy Penang

One of the major announcements related to the new smart card is the RM60 million “Penang Sihat” card program, which Lim said was his favourite item in the budget.

Recognising how healthcare expenses form a big part of household expenses, the state government is introducing the Healthy Penang programme for households earning less than RM5,000 a month.

“Every year, these households will be given RM300 credit in their I-Love-Penang card to pay for outpatient clinic fees and medicines, capped at RM50 per visit.

“Single individuals with income less than RM2,500 will also get RM150 credit a year, similarly capped at RM50 per visit.

“This will help ordinary working people who fall ill to see a doctor immediately without worrying too much about expensive charges or travelling to government clinics that are far away from their homes,” he said.

Lim said Penang has a median income of RM5,409 and placing a RM5,000 income threshold will assist working-class income groups most in need.

The Penang government estimates that it will spend RM60 million annual for the new programme, with Lim describing it as a serious undertaking by the state even though health was a federal matter.

“This contrasts with the federal government’s budget cuts for pharmaceutical and public health supply costs by RM19 million from RM950 million in 2017 to RM931 million in 2018.”

He also said the free mammogram examination programme for women above 35 years will continue. The programme will benefit an estimated 30,000 women by 2020.

Cash aid for working moms

Recognising women’s contribution to the economy and to boost Penang’s female participation in the workforce, the state announced RM15 million in child care assistance for working mothers.

Starting next year, all working mothers up to age 60 with children from newborns to six years old will receive an annual RM300 cash aid, Lim said.

About 50,000 households in Penang with at least one child will benefit from the programme.

“Penang leads in gender empowerment,” Lim said.

Peak hour free buses

He said Penang was also proposing to improve the use of public buses using the “nudge approach” of the I-Love-Penang card.

For next year, the state is setting aside RM15 million to encourage public bus ridership by providing free rides during morning and afternoon peak hours on all buses.

“We will work with Rapid Penang to expand the service networks, revamp some of the routes to make bus journeys faster, more frequent and more reliable and to put more buses on the road.

“The expanded free bus programme will tremendously increase ridership, revenues and ancillary business opportunities for Rapid Penang.”

However, to make this happen, the state needs Rapid Penang to say yes and provide an additional 200 new buses. A similar idea was previously proposed but rejected by the bus operator several years ago when the state offered to pay RM10 million.

“We are trying to be positive since we have increased the amount we are willing to pay Rapid Penang to RM15 million,” Lim said.

He said for the new free buses initiative to work, a cashless smart card system allowing both users and bus operators to monitor bus trips and usage electronically must be adopted.

He said free buses were popular with locals and tourists, such as the CAT buses that currently covered the George Town area, for which the Penang government and Penang Island City Council (MBPP) had paid RM21 million to Rapid Penang since 2008.

He also said MBPP would be increasing the number of free CAT buses from three to five next year, with the cost going up from RM666,000 to RM1.1 million.

Lim added that the state was also setting up “Transport Penang” – new planning authority comprised of a team of transport planners, modellers and experts who will report to the Penang Transport Council headed by state traffic management and local government exco Chow Kon Yeow.

Protecting hills

The state is also allocating RM10 million for hill slope protection, a study on climate change and to deal with illegal farming.

Penang was recently hit by its heaviest rain in 100 years in September, which led to floods in many parts of the state. A landslide which occurred last month also killed 11 construction workers in Tanjung Bungah.

“In the future we hope to commission a comprehensive climate change adaptation plan for the island and mainland so people can be better informed and ready for the effects of climate change.

“To improve our existing natural disaster and emergency response system, we have set up a Penang Alert System and will conduct studies that will be part of our hill slope protection project and mechanism costing RM10 million,” Lim said.

Funds for flood mitigation projects, core sports and others

To further tackle flood woes in Penang, both MBPP and the Seberang Prai Municipal Council (MPSP) will be spending RM20 million on various mitigation projects.

Meanwhile, RM61.2 million has been set aside for road works next year, and RM33 million for two new markets in Bukit Mertajam and Seberang Jaya.

The budget also sets aside RM45 million to make Penang a bicycle state, RM275 million to make badminton and swimming core sports, and RM75 million for STEM (science, technology, engineering, mathematics) teaching.

The state is also giving local vocational school students a RM300 one-off payment to develop skills and human capital development.

RM3 million was announced for the George Town Heritage Refurbishment Fund and RM1 million for the Little India Precinct upgrading seed money.

The state is maintaining its annual funding of RM1.1 million for non-Muslim religious affairs. For Islamic development, Penang will increase its allocation from RM50 million to RM53 million next year.

The state is also waiving assessment rates for hawker licenses, low-cost, low-medium cost and kampung houses which will cost the MBPP and MPSP RM8.9 million and RM6 million respectively.

Less revenue, bigger projected deficit

However, the state is expecting to collect less revenue in 2018 – RM503.76 million.

The administration is estimating a total operating expenditure of RM1.25 billion, and a deficit of RM748.5 million compared to the current year’s RM667.1 million.

“The state has limited resources with no new sources of income, and revenue from investment interest is expected to decrease with the dwindling dividend payment and interest rates for fixed savings.

“But the state has no choice but to maintain the operating and development expenditures,” Lim said.

“However, Penang has the unique distinction of tabling projected budget deficits annually, but yet record actual surpluses each year, principally through savings from our open tender system and efficient CAT administration of competency, accountability and transparency,” he said.

Asked in a press conference later if this was PH’s election budget for Penang, which the opposition has held for two terms, Lim reiterated it was a “marhaen” budget. – November 2, 2017.