Penang Opposition leader wants fiscal recovery plan to address revenue shortfall
GEORGE TOWN, May 21 — Penang Opposition Leader Muhammad Fauzi Yusof today pressed the state government for a five-year financial recovery plan to address what he described as a fiscal crisis currently facing the state.
The Sungai Dua assemblyman said that the state government must review and balance its critical and non-critical spending while improving its administrative structure and procedures.
'The state government must not use oppressive policies, such as raising quit rent rates that burden the people of Penang, in order to increase state revenue,' Fauzi said at a press conference held outside the state legislative assembly today.
He was referring to a reply by Penang Chief Minister Chow Kon Yeow in the assembly, which mentioned plans to raise state revenue streams through the collection of quit rent arrears amounting to RM6 million, selling state lands, and reviewing various fees and charges.
Fauzi cited the Auditor-General's Report from October 2024, which he said indicated a drastic decline in the state's financial performance, in which the revenue account fell 52 per cent in 2023 from the year before while the consolidated trust account showed a 2.9 per cent decrease.
'This comparison is highly unbalanced, especially when the state government's expenditure increased by 13.9 per cent while state revenue decreased by 0.4 per cent (in the same period),' he added, highlighting the disparity.
Fauzi warned that if this situation continues, Penang would face a critical cash flow risk.
'This will jeopardise the state's ability to manage its funds and administrative expenses, including the salaries of civil servants in the state,' he said.
Yesterday, another opposition assemblyman, Yusni Mat Piah (PAS-Penaga), also questioned the state's decision to purchase new cars for state executive councillors and officials while allegedly facing a fiscal crisis.
Chow is expected to address these concerns regarding the state's financial situation during his winding-up speech at the state legislative assembly tomorrow.
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