Full 2016 Penang Budget Speech Text By Guan Eng



The 2016 Penang Budget Speech By Penang Chief Minister Lim Guan Eng on 6 November 2015


Mr. Speaker Sir,

I beg to move the Bill intituled “An Act to apply a sum from the Consolidated Fund for the service of the year 2016 and to appropriate that sum for the service of that year” be read a second time. 



Mr. Speaker Sir,

1. Firstly, let us together all give thanks to God that by His grace alone, then I can be together with all the leadership of the State once again the trust to deliver the Budget speech of Penang in 2016 in this Honourable House.

2. In my speech, I will combine Operating Budget submissions on the first line with the presentation of the Supply Bill followed by the Development Budget.


Mr. Speaker,


3. In formulating policies, strategies, programs and actions for the preparation of Budget 2016, the State Government is trying to do the best possible balance in view of the strong economic growth requires the participation of not only the public sector but requires a partnership with the private sector. The service sector now contributes more to gross domestic product (GDP) in 2014 to 48.3% compared with the manufacturing sector, which contributes 46% to GDP.

4. Human Capital Report, World Economic Forum defines high-income economy as something that has a Gross Domestic Product (GDP) per capita of US $ 12.467 or 40.841 RM based on current exchange rates; RM3.27 to US $ 1 in 2014. Penang is expected to reach a GDP per capita of RM42,251 based on a total population of 1,681,922 people and a GDP of RM71,063 million in 2015. The GDP per capita amounted to RM42,251 should Penang has exceeded the benchmark RM40,841 to become a high-income economy.

5. However, I want to give a reminder that the fall in the ringgit due to external factors such as the RM42 billion 1MDB scandal in world currency markets, was technically not make Penang a high-income economy this year. RM40,841 compared to the benchmark to achieve high-income status, the depreciation of the ringgit means that the benchmark was increased to RM50,000 per capita GDP. Of course, if the ringgit recovered, perhaps by next year when all the political and financial scandals completed, Penang can be returned to its status as a high-income economy.

6. The term “entrepreneurial state” associated with Professor Mariana MAZZUCATO. His main argument is related to wealth creation based on collaboration between the “wealth creators” that involves not only “stakeholders” business but also workers, public institutions and civil society organizations. Professor MAZZUCATO has submitted a proposal that was so good that the government can lead the investment in riskier sectors, particularly in the field of research and development (R & D), innovation and retraining and skills upgrading, which is not taken up by the private sector.

7. In Penang, we established a progressive economic policies that led to inclusive and sustainable investments to create wealth through public and private partnerships that drive long-term growth and productivity. In many respects Penang is a state enterprise, but we do not believe the involvement in market yields, particularly to compete with the business in line with our mantra of “the business of government is not to get into business”



Mr. Speaker,

8. Penang continues to gain the confidence of local and foreign investors. This was evident when within seven (7) years from 2008 to 2014, the number of direct investments increased by 93% to RM48.2 billion compared to RM24.9 billion total investments recorded from 2001 to 2007. Job opportunities are realized in the 2008-2014 period amounted to 109.592 jobs. In the last quarter of 2014, the labor force participation rate in Penang increased to 70.6% with the low unemployment rate of 1.7% for the year 2013 which is the lowest in the country.

9. Penang has attracted investments worth RM4.33 billion in the first half of 2015 with 67 projects approved. A total of 13,199 jobs have been created in the first half of this year. Therefore, mergers and acquisitions (M & A), several international companies (MNC) recently no negative impact or involve a lot of laid-off workers and Penang are still facing a shortage of 20,000 workers.

Strengthening Strategic Integration Economies

10. Penang also have to diversify their economic activities to the service sector such as shared services and outsourcing (SSO), software development (IC design & development), creative multimedia, information technology and processing knowledge through BPO Prime in Bayan Baru, IT BPO park in Bayan Remove andCAT (Analytics Accelerator for Creativity & Technology) for creative multimedia content (CMC) at Wisma Yeap Chor Ee in George Town Heritage Site. All three projects are expected to generate more than 30,000 jobs.

11. SSO sector in particular has attracted status company Multimedia Super Corridor (MSC), which raised a total of RM4.073 billion from 2009 to 2014. For example, Citigroup’s operating center services Global Financial Credit Transaction Hub hub world that has more than 24 hours 1,400 local workers who handle 32 million transactions, worth USD7.2 trillion credit each year.

12. It is important that the manufacturing industry is not stagnant but continues to move towards high-tech, innovative and high value. It is important that Penang is known for ‘front-end industry’ which emphasizes new products in the industry, investing in research and development (R & D) and over 7% of workers have a diploma or a bachelor’s degree with 5 years experience. This requires well-trained workers. That is why the State must invest in human capital.

13. The State Government has initiated efforts in this direction by providing an allocation of RM12 million for Chinese Primary School, Primary School Tamil and religious schools began in 2008. But this is not enough. World-class vocational education is also important. After trying almost 4 years to attract companies of Germany, the State managed to witness the start of the German vocational education courses in Penang on 1st September 2015.



Mr. Speaker,

Strengthening Human Capital through Education

14. The State Government has allocated RM2 million for the success of the German Dual Vocational Training Programme at the Penang Skills Development Centre (PSDC). In other words, the cost of tuition paid by the State. In addition, students will be given a monthly allowance of RM900 for diploma courses. Students actually paid money to learn.

15. After completing the study within 42 months, they can work with multinational companies with lucrative salaries. This diploma is recognized by the Malaysian Government and the Malaysian German Chamber of Commerce. The uniqueness of the German vocational system is to learn and practice while working in the factory. It is fundamental to the success of miraculous recovery of the German economy. Through this program, the Federal Government expects local children the opportunity to learn German technology in Penang with “Trained in Penang” as a sign of mastery of the German vocational education system.

16. Among the companies involved are as B. Braun, Carsem Malaysia, Dynacraft, Inari, Osram, Robert Bosch and Southern Steel. The first decision or the first batch has already started with a total of 22 students comprising 20 Malays and two Indians. More than half are women. The program can accommodate 500 to 600 students and the state government is ready to allocate RM4 to RM6 million if needed to add students. The program is open to children of Penang and also Malaysians come to attract more talent in Penang.

17. The State Government has also established a scholarship program, named Penang Future Foundation (PFF), which was launched on 1 April 2015 and with funds totaling RM20 million. Since 2008, the State Government has recognized the “Unified Examination” organized by the Dong Jiao Zong to serve in a subsidiary agency of the State Government.

18. All of this is intended to develop new talent for creating a cluster of creative / innovation-based 3T – Talent, Technology and Tolerance of new ideas. Freedom enjoyed in Penang can act as a catalyst to ensure the economic equality of opportunity to all and also realize their full potential.

19. The State Government intention to transform Penang as a Centre of Excellence in Science and Technology will become a reality when the center of science and excellence, Tech-Dome Penang (TDP) worth RM25 million to be completed by 2017.

20. State will depend on new economic catalysts such as arts, culture and heritage. Two new initiatives undertaken. The first initiative was to establish a Museum of Art in Sia Boey as part of the Arts & Heritage Square area of 5.5 acre site next to Komtar. Heritage & the Arts can generate returns through tourists and carved a niche in the international art and painting in order to attract more people to gather and play.

21. The second initiative is the signing of the MOU (Memorandum of Understanding) with the Aga Khan Trust for Culture and the Think City (a subsidiary of Khazanah Berhad) to carry out the maintenance and restoration of the World Heritage site of George Town on a large scale and holistic, particularly near water bodies. Both of these initiatives have an economic value of RM500 million.

22. Another catalyst for the economy is the construction of a community hall as a source of international standards “Incentives Meetings Convention & Exhibition” (MICE). For example Seberang Perai Arena (SPA) which was built at a cost of RM11 million in Seberang Jaya, a selection of the public not only to organize feasts and public use but for companies doing business expo. SPA which can accommodate 150 tables enliven the neighborhood and stimulate commercial activity.

23. The state government plans to build another House of People’s twice as big as in Ampang row, Butterworth. The international hall can accommodate 300 tables will be built at an estimated cost of RM60 million, including an international pool. It is hoped that the construction of the Town Hall, the largest in the Province could begin next year.

24. In addition, SPICE or Sub-terranean Penang International Convention & Exhibition in Bayan Baru will be completed in 2017 and can accommodate up to 550 tables. The construction sector plays an important role although contributing 2.2% to GDP in 2015 compared to 2.1% of GDP in 2010. It will intensify with the planned Public Transport Master Plan projects worth RM27 billion, accounting for the LRT system, highway, air and sea island and Seberang Perai area to reduce traffic congestion and projects.


Land Reclamation

25. To date, a total of 744 acres of land has been reclaimed for development purposes by the Barisan Nasional (BN). The details are as follows:
(a) Land was reclaimed during the Barisan Nasional (BN):

(a) Land reclamation

(b) Land Reclamation in Penang Structure Plan to be reclaimed After the Approval by the BN Government

(b) Land Reclamation

(c) Land reclamation approved by the State of Pakatan Harapan

(c) Land Reclamation

26. Apart from the Bayan Mutiara, the new reclaimed land is in San Diego. Bayan Bay reclamation by Messrs Ideal Gym Ventures Sdn. Bhd. with an area of 24.79 acres will be used for the construction of 2,100 housing units in an area of 11.79 acres, 11 acres of government reserves and 2 acres for the use of infrastructure. For this approval, the State will receive a modern sports complex of international standards for public use as follows: –

i) Covered Semi Velodrome, cycling track of international standard with a 250-meter and 3 units of a basketball court and a volleyball court;

ii) international standard swimming pool plus ‘diving pool’; and

iii) A football field in Persiaran Bayan Indah, parcel “A” next to Lot 15739, District 12, West District, Penang.

Strengthening the Halal Industry

Mr. Speaker,

27. The State Government will also continue to strengthen the halal industry to venture into the halal market, which now stands at USD2.3 trillion annually. Penang Halal Industrial Park (TPHPP) Phase 2 has been able to achieve a total investment of RM174.98 million. In the area of strengthening the integrity and Halal certification, the Halal Affairs Department, Penang and Penang Islamic via outreach program has successfully increased the number of applications for Halal certification of 55 companies in 2008 to a total of 765 companies in 2015.

28. Halal certification is not just diet alone but was extended to the tourism industry to attract Muslim tourists. For example, shipping companies Superstar Libra has got pengiktifaran Halal. In addition to the publication of Muslim Travel Guide, now Halal Penang also jointly Halal Institute for Research and Training is developing a module guides Muslims.

Realizing Potential Tourism and Heritage

Mr. Speaker,

29. The increase in tourists to Penang is not just the increase in statistics, an increase of 45% or a total of 6,847,569 tourists in 2014 (Statistical hotel accommodation by Tourism Malaysia) compared to 4,702,100 tourists in 2013. It was also evident to the opening of new hotels as well boutique hotel.

30. The state is also a choice of Hilton Worldwide, a leading international hospitality United States, opened its first resort, DoubleTree Resort by Hilton in Penang. The project, costing RM230 million will be developed on the site of Hydro Majestic Hotel, Batu Ferringhi, which will be undergoing renovations and is expected to open in the first quarter of 2016. The opening of the 5-star hotel, the first in the Province, The Light Hotel, also increase the choice and opportunity tourism there. Another five-star branded hotel on the island is expected to be announced next year.

31. In conjunction with Visit Penang Year 2015, the State Government through the Penang Global Tourism has successfully implemented a number of international events such as the inaugural Hot Air Balloon Festival Penang, Penang Anime Matsuri Summer Party 2015, Penang Justice League Run and Transformers’ Light. These events, which spent nearly RM3 million received overwhelming response and the State Government planned to continue such events in 2016 with a larger scale.

32. The State Government has once again captured the attention of States Biscuit Films Sdn Bhd and New Production Ltd. from the United Kingdom to extend the period of filming in Penang for the public interest filming TV drama series “Indian Summers” for a second season. Through the filming of this, the State Government also generate substantial revenue as the company has invested almost RM84 million (14 million pounds sterling) for the purpose of publishing the next drama can promote Bukit Bendera Penang, especially internationally. It also provides job opportunities and experience in the field of film to the locals.

33. Development activities in Bukit Bendera be addressed in order to attract more visitors to the Hill. The number of visitors to the Hill each year recorded an upward trend and are expected to increase 7.9% again to a total of 1.56 million visitors next year.

34. International New York Times has published an article about George Town Festival celebration as the growing Asian art. Travel website (Web Portal) in the world, “Lonely Planet”, recently enlisted George Town, Penang as the fourth city in the world charismatic. George Town is the only city chosen from ASEAN countries and the most charismatic of the Asian continent. Even George Town more than other cities like Mumbai, Manchester, Rotterdam and Rome.

35. In order to ensure the continuity of projects and programs and heritage tourism attractions for 2016, provision berumlah RM31.93 million will be provided.

Preserving the Agricultural Sector Development

36. The State Government has allocated RM13,564,160 for agro-based industrial sector (IAT). Emphasis was also given to the development of stingless bees are gaining popularity in domestic and international markets. At present, a total of 1,000 hive stingless was developed by breeders kelulut.

37. To assist fishermen Furthermore, the State has provided provision in the current year for the construction of an artificial reef off the island of Pulau Kendi Aman and to ensure sustainable fish stocks in Penang while increasing the catch. The aid program for fishermen trawl Penang will also continue in 2016 and RM1.6 million has been allocated for this purpose. In addition, the microcredit system, Tani Young Entrepreneurs Fund, will be continued in 2016.

Strengthening Social Programs and Welfare

38. Equitable Economic Agenda (AES) is exterminator poverty by ensuring that each family receives a minimum of RM790 a month. The State Government will add value (top-up) of any family that could be less than the amount of RM790. For example, if a family receives RM600 a month, the State would provide “added value” RM190 every month until the completion of RM790 per month.

39. To ensure effective welfare programs Equitable Economic Agenda (AES) are relevant to the current situation, the AES program began in July 2015 that was formerly held without conditional (unconditional) have been on parole (conditional). Among the conditions is that the beneficiaries of the system must pay attention to health factors, family and children’s education.

40. Method AES conditional grants are intended to monitor the effectiveness of aid programs for poor families, to change behavior patterns in order to free them from poverty. In the year up to October 2015, a total of 1,204 families have been helped by involving an allocation of RM2.8 million.

41. The people of Penang registered with i-Peace Program which includes the Senior Citizens Appreciation Program, Program Assistance for Single Mothers, Disabled Assistance Program, Student Scheme Gold, Gold Mothers Program provided a total of RM100, RM200 Golden Child Program and RM1,000 to students and relatives of senior citizens, single mothers and the disabled. Taking into account the security of the State Government will continue its program of well received despite economic constraints, the allocation of RM61 million will be provided by 2016.

Reducing Crime and Maintaining a Safe City

42. Safety has always been the main focus of the people of the State and its efforts to reduce crime would be enhanced. State thanked the Royal Malaysian Police (PDRM) on this success. Thank you also to all the security forces such as the Army, the Department of Immigration, Customs, Prisons and Fire Services Department who also maintain state security.

43. In order to ensure the safety of the state, Community Development and Security Committee (JKKK) has established a Voluntary Patrol Bureau (BPS) to enhance safety in their community group. The State Government has allocated a total of RM1.2 million for the establishment of BPS.

44. The State Government, through MBPP also allocated RM9.36 million in 2016 for the installation of closed circuit television cameras (CCTV) new and existing maintenance CCTV cameras. As of 2014, MBPP has installed a total of 286 CCTV cameras, while the Ministry of Housing and Local Government (ministry) have installed 56 CCTV cameras on the island. At the end of 2015, MBPP will install 216 additional CCTV cameras on the island.

45. On the mainland, the date has installed 130 surveillance cameras at strategic locations at the center of civil and criminal incidents occur frequently. MPSP will also be allocated RM3 million in 2016 for additional installation and maintenance of street lights. All these efforts are carried out by addressing the issues of crime and enhance public safety.

Affordable Housing For The People

46. The State Government has approved a fund of RM500 million to the PDC assigned to construct affordable housing in the five districts in Penang. An affordable housing project in Bandar Cassia first phase, Seberang Perai Selatan containing 520 units currently under construction and due for completion in December 2016 with sales prices between RM72,500 and RM220,000 per unit. Low-medium cost housing projects and affordable housing in Jalan SP Chelliah, Northeast Region recently approved Advertising Permit and Licence Developer (Advertising Permit & Developer License) by the ministry. This housing project involving the construction of 770 housing units for low and medium cost 1,323 affordable housing units could begin implementation.

47. On the basis of the Government’s concern and desire to achieve the goal of “one family, one home,” The State Government has introduced a kind of new affordable housing that is affordable homes priced up to RM150,000 in which the terms and conditions of these houses is the income limit household not exceeding RM6,000.

People-Friendly Housing Maintenance

48. To improve the quality of life and comfort of the people who live in the 49 State Housing Plan, the State Government will allocate a total of RM9.76 million for the upgrading and repair of the “common area” of housing the state government. Maintenance work on the State Housing Plan was due to be financed from the proceeds of maintenance fees charged, but taking into account maintenance fees collected in arrears and not to neglect the maintenance work that is required, the RM5 million will be made available in 2016 to cover the Savings Trust Account Maintenance Low Cost Housing State.

49. The State Government concerned for the people who live in low-rise housing costs and low medium-cost private. To ease their burden in shouldering the cost of repair and maintenance of basic facilities such as elevator repairs, roof and water tanks in low-cost flats and low-medium cost private, then in 2016 the State Government has allocated RM2.8 million under the co-financing of 80: 20 (80% of the State population and 20% contribution / Management Corporation) and RM3 million in funding from the Program HAPPY!

Improving Environmental Management

50. The State Government continues to work towards Penang as green. In fact since the State Government banned the use of polystyrene food containers and plastic bags in all shopping malls, recycling rates in Penang in Malaysia reached the highest levels by 32% during the year 2014 exceeded the current national recycling rate of 10.5%. National target is a 22% recycling rate by 2020. However, the Penang state government hopes to be able to achieve the international standard of 40% recycling rate by 2020.

51. State of Andhra Pradesh has also taken measures or policies that are progressive for lower carbon emissions as follows:

a) The prohibition of shark soup dish in all councils of State and the leader of the State Government

b) Provide free bus in George Town (CAT bus) and free shuttle service to and from the industrial area (BEST bus)

c) Announcing the Car Free Day every Sunday at Beach Street, George Town and every month on the mainland.

d) To design and build bicycle lanes along 200 kilometers of the riders in both on the island and the mainland.

52. In terms of management, conservation and maintenance of biodiversity resources, particularly forest resources, then in 2016 the State will allocate a total of RM2.07 million for the purpose.

53. In order to protect coastal areas from degradation and erosion as well as address the issue of sea water contamination, especially in tourist areas like in Batu Ferringhi, Drainage and Irrigation Department (DID) has implemented Conservation Project Coast and Sea and Air Quality Improvement “Beach Nourishment” in Batu feringghi projects costing a total of RM10.85 million.

Flood Mitigation

54. The State Government is very disappointed that the federal government has marginalized Penang in Budget 2016. There is also a project to Penang. The Prime Minister has promised to help the victims of the floods in Penang during the Hari Raya Haji. Therefore, I have taken action by writing a letter to the Prime Minister requesting approval of a flood mitigation project in Papua of RM805 million.

55. I was told that all applications for Penang State Government rejected the RTB Sungai Pinang of RM200 million had been approved under the 9MP. Keep in mind that Penang is part of Malaysia and paid taxes for at least RM6.3 billion a year. Penang is unreasonable manner discriminated.

56. The high impact of flood mitigation projects by the State Government will cost a total of RM116.84 million, especially in Seberang Perai Tengah and is expected to be completed in 2017. For 2016, the State Government has allocated RM38 million on the project implementation schedule high impact involved.

57. In the meantime, in 2016 the State Government has allocated a total of RM14.28 million to JPS to provide facilities and services for irrigation and drainage infrastructure in general.



Mr. Speaker,

58. To increase the attraction of Penang State Government has also appealed to the Penang Sentral Sdn Bhd in Butterworth for implementing Cable Car Project feasibility study to connect the mainland to the top of Penang Island, known as Sky Cab. Penang Sky Cab not serve as an alternative to the LRT or Tram but a mode of public transport options as well as product and new tourist attractions. If all goes well, the project Penang Sky Cab, with an estimated cost of over RM300 million is expected to be completed in 2018.

59. In 2016, the State Government has allocated a total of 26.11 million to continue with the implementation of the six (6) construction and upgrading of roads, which are detailed in the 2015 budget and a total of RM17.45 million for financing road maintenance State. To improve access and upgrading of rural roads, the State Government has allocated RM2 million in addition to RM5 million that could be financed for the purpose of granting the Federal Government under the provisions of Marris (Malaysian Road Information System). In the year 2015, the State Government has disbursed a sum of RM1.0 million to finance the upgrading of rural roads and RM3 million to finance the maintenance of village roads.

Improving Public Services

60. In order to improve the quality of public amenities to ensure the people enjoy a higher quality of life, the State Government through MBPP allocated RM5.16 million next year to upgrade facilities hawkers in Jalan Jelutong Hawkers Site, Anson Road Market, Pasar Jalan Patani, Market Batu Lancang and Pasar Taman Tun Sardon, complete the construction of the new Public Market at Batu Ferringhi and preliminary construction work of the new Public Market in Teluk Kumbar. Given the Esplanade is home to a variety of programs, MBPP allocated RM0.9 million for the work of sub soil drainage at Padang Kota Lama and a number of RM0.9 million for the same work in the field Lebuh Maccallum.

61. For public facilities on the mainland, the State Government through MPSP will allocate a total of RM5.13 million for the upgrading of infrastructure facilities such as food and markets complex civil, toys and recreational facilities and the provision of other public facilities to the citizens of San Carlos. The State Government will also allocate to the PDC, which amounted to RM5 million for a project to build Public Swimming Pool in the Seberang Jaya.

62. To provide facilities for the disabled as well, both MBPP and MPSP will allocate RM0.5 million and RM0.15 million respectively.

63. For the year 2016, the State Government through the City Council of Penang Island (MBPP) will continue with the construction and upgrading of footpaths which cost a total of RM2,385,150.00 on Main Street from Highway Residency to Jalan Dato Keramat, Jalan Gurdwara of Lebuh Tye Sin to Lebuh Katz, Brook Street and Jalan Gottlieb, Jalan Jalan Burma Ason up and Jalan Masjid Negeri / Jalan Ayer Itam Road / Scotland.

64. At the same time, MBPP also will take sustained efforts to promote the use of bicycles in which a number of RM3.06 million will be allocated for the year 2016 for the construction of bicycle paths, ‘Green Road Sharing Concept’ at the top of the island where the costs are also include the cost of maintenance. Meanwhile, in the mainland is also the State Government through the Seberang Perai Municipal Council (MPSP) has allocated a total of RM350,000 in 2016 for a project to install a railing and walkways and lighting under the Safe City Programme.

65. The State Government also pays attention to the way in which the light through MBPP, totaling RM2,015,491 for the maintenance of street lighting is provided for the year 2016. Meanwhile, at the Seberang Perai, MPSP has allocated RM3.0 million for the cost of installation and maintenance Public street lighting for the year 2016.

Communication Infrastructure Wifi

66. The State Government continues to provide free wifi access in public areas. Now there are 1,550 free wifi hot spot in all 40 state constituencies in Penang. Internet speed has been doubled to 1Mbps raised to 1,500 hot spots free of charge, while 50 hot spots in George Town World Heritage Site, its speed increased to 3Mbps. Cost is £ 10 million to be paid within five years.

67. The State Government intends to improve the free wifi hot spot doubled to 3,100 hot spots in public areas. Penang State Government believes a state can only be developed with high-speed internet and not slow like that espoused by certain parties. Penang willing to be a platform to determine the speed of the internet which supported the people – Penang fast or slow they are.


68. Women not only as a ‘pillar’ of the family institution but has been instrumental in giving a significant contribution to social and economic development of the country. Therefore, the State Government has recently launched a new program, the UP Program for Women Leadership Development Program in collaboration with the Centers Service Assembly, Coordinator KADUN and local JKKK. To date, a total of five (5) pieces UP Program was held at the Investment Coordinating Board, Seberang Jaya, Serving, Bay Ridge chestnuts and heat with a total participation of 297 female participants. Allocation was RM800 million to RM1.5 million MMK Women and Women to Penang Development Corporation (WDC).



69. The State Government, through MSN also is conducting preparation for competition in the Malaysia Games XVIII (18th) 2016 Sarawak which will take place on 21 and 31 July 2016, targeting gold medal more than 24 gold medals against targets in the Malaysia Games XVII (17th) in Perlis. Along with the branding of the city of Penang as the dominant sport in Malaysia, in 2016 and thereafter, Penang was chosen to become a party to several international sports program, including Malaysia Masters Badminton Championship 2016 – Grand Prix Gold, International Weightlifting Federation (IWF ) Youth World Championship 2016, the International Weightlifting Federation (IWF) World Championship 2017 and the Penang Asia Pacific Masters Games 2018 which is expected to cost a total expenditure of RM5 million.

70. The State Government takes this opportunity to congratulate the Football Association of Penang (FAP) for successfully meeting the challenges of His Excellency the President of the State to be eligible for promotion to the Super League next season. Success was eagerly awaited by football fans and Penang State Government of Penang’s squad will hope to remain in the Super League next season. Therefore, the State Government has already promises to provide an incentive of RM12.34 million through the Penang Water Supply Corporation (PBAPP) as the main sponsor of the Black Panther squad.



71. Although there are dissenting voices that undermine the focus of the State Government to the importance of the Muslim community but the fact the State never underestimate this responsibility, but also pay attention to a balanced and equal with other service sectors. This can be evidenced by the allocation of each year by the State Government for funding all development programs and projects of Islamic affairs planned.

72. During the year 2015, the allocation for Islamic affairs approved so far in October 2015 amounted to RM58.13 million with regard to RM5.26 million for land acquisition, while for next year totaling RM55.85 million was allocated. Provisions in 2016 actually increased RM2.98 million equivalent 5.64% compared to 2015, because there is no need for allocation of land acquisition provided for in 2016.



Mr. Speaker,

73. On this occasion, I congratulate the State Secretariat for successfully pursue excellence with Certificate of 5S Malaysia Productivity Corporation (MPC) for the fourth year in a row, received the National MyGDI National Geospatial Information Symposium in conjunction with the 6th Category State Department and won second place in Records Management Best Rated Secretary Office in conjunction with the anniversary celebration of the 57th National Archives.

74. The State Government also congratulated MBPP as City Garden, MBPP won the Best Website Award in the General Assembly Tourism Promotion Organisation Pacific in Sanya, China this year. My congratulations also go to the Seberang Perai Municipal Council (MPSP) as listed in the Malaysia Book of Records as the Local Authorities (LAs) have managed to get the first five (5) Quality-Based Management System certification of the Quality Management System (QMS 9001: 2008), Environmental Management System (EMS 14001: 2004), Safety Management Systems and Health (OSHMS 18001: 2007), Energy Management System (EnMS 50001: 2011) and Quality Environmental Management System (QEMS / 5s).

75. Contribute to YB Datuk Seri State Secretary, State Financial Officer and General Counsel is appreciated.

76. In recognition of the contribution of members of the State Public Service, in July of this year the State Government approved the Special Financial Assistance of half month salary or a minimum of RM600 to a total of 4,168 members of the Public Service. Special Financial Assistance is now extended to supervisors and Kafa Guru, Guru Sekolah Agama Rakyat, People’s Religious Secondary School Teachers and Teacher and Staff of the Chinese Private School RM300 and RM200 a Master TAHFIZ, cottage and Kindergarten Teachers Islam Negeri Pulau Pinang. Overall administration expenses involved amounted to RM5.22 million.



77. The purpose of the Supply Bill 2016 is to have statutory powers to enable the State to make the expenditure of RM952,720,723 Supply (Ringgit Malaysia: Nine Hundred and Fifty Two Million, Seven Hundred and Twenty Thousand, Seven Hundred and Twenty-Three) for the year 2016. In addition, a sum of RM26,806,120 (Ringgit Malaysia: Twenty Six Million, Eight Hundred Six Thousand, One Hundred and Twenty) is required to Shopping liability according to law under the Consolidated Fund. Therefore, the total estimated Expenditure in 2016 is RM979,526,843 (Ringgit Malaysia: Nine Hundred and Seventy Nine Million, Five Hundred and Twenty Six Thousand, Eight Hundred Forty Three).

78. There are 19 departments that applied for approval of the provisions of the Purpose totaling RM952,720,723 as detailed in Leaflet No. 5 Year 2015.

79. Under the provision of supplies for the year 2016 amounting to RM952.72 million, a total of RM163.53 million is allocated for Emoluments, of RM145.52 million for supplies and services expenses, a total of RM7.3 million was allocated for the acquisition of assets and RM5.15 million available for other expenditures (including refunds of revenue and write-offs). While a number of RM631.22 million allocated for expenses Fixed Charges and Grants, including the RM220 million to be contributed to the Fund for Development.

80. Expenses of Fixed Charges and Grants remains the largest component of 66.25% of the expenditure supplies. This amount takes into account the contribution of RM220 million to the Development Fund, a contribution of RM216 million for the Affordable Housing Scheme and a total of RM117 million has been allocated for the provision of social assistance and people who are committed. The increase in the provision for general objects otherwise is to cater for the increase in operating expenditure every year as salary increases and adjustments to emoluments, the rising cost of supplies and utilities, maintenance cost increases, GST on services imposed fees are estimated RM20.75 million and needs replacing vehicles and assets that are no longer economically viable and should be disposed of.

81. The proposed development expenditure for the year 2016 was for an amount of RM346,123,190 (Ringgit Malaysia: Three Hundred Forty Six Million, One Hundred and Twenty Three Thousand, One Hundred and Ninety), which includes provisions directly RM346.12 million from the State Government and Create RM10 for federal loans. The purpose of distribution under development totaling RM346.12 million is for the nine departments as detailed in Leaflet No. 5 Year 2015.




82. The overall budget proposed for 2016 RM1,105.65 million, an increase of RM112.83 million or 11:36% compared with the overall budget of RM992.82 million for 2015. Operating Budget Estimates of RM979.53 million, an increase of RM92. 29 million or 10.4% when compared with the Operating Budget 2015. This increase is attributable to increased contributions amounting to RM220 million to the Development Fund compared to only RM120 million provided in 2015 for the purpose. Contributions of RM220 million to the Development Fund is the largest contribution to date. The contributions must be made for the purpose of financing development projects planned for implementation in 2016 and providing housing and economic reserves of RM100 million.

83. Proposed Development Budget of RM346.12 million, an increase of RM120.54 million or 53.44% when compared to the development expenditure of RM225.58 million in 2015. This increase takes into account the initiative of the State Government in preparing the reserves amounted to RM100 million if needed to address the economic crisis and continuing with the implementation of development projects planned, the budget allocation of RM38 million which is available for high-impact projects for the purpose of irrigation and drainage, flood mitigation and the provision of RM20 million for the construction of public facilities such as banquet halls and swimming pools Seberang Perai.

84. For the parliamentary constituency allocation of RM9.43 million were approved for financing include the acquisition of land for the site of the mosque, religious school and mosque cemetery Qaryah Cherok Tok Kun is also the site for the Town Hall KADUN Investment, mosque construction projects and religious schools, road maintenance projects State and village roads, irrigation and drainage for flood mitigation, sports facilities and community facilities in general. In the year 2016, specifically for the purpose of flood mitigation in the parliamentary constituency of RM22.47 million was allocated for the construction of new bridges, pump houses and upgrade Sungai Rawa involving Padang Lalang / Kg. Board Kg Rawa and area. Tanah Liat Mukim 20 / Taman Guru, in addition to the financing needs of RM9.9 million for the implementation of infrastructure projects and other community facilities that will be provided are required.

85. In terms of the details of the allocation provided for the construction of nine (9) brochures the department as Bill. 5 In 2015, under the meaning of P01 Development Office of the Chief Minister and State Secretary Office and mean P16 Development Finance Department of State has provided provision increased compared to 2015 for the financing of projects described earlier.

85. In terms of the details of the allocation provided for the construction of nine (9) department in the brochures of Bill. 5 In 2015, under the meaning of P01 Development Office of the Chief Minister and State Secretary Office and mean P16 Development Finance Department of State has provided provision increased compared to 2015 for the financing of projects described earlier.Provision is made for the construction of seven (7) positions are otherwise very similar to the amount of the provision in 2015, in addition to specific additional allocation for the departments involved in either the mean P01 Development Office of the Chief Minister and State Secretary Office or mean P16 Development Finance Department of State , For example, the allocation of RM38 million is provided for flood mitigation projects under development mean P16 State Finance Department and an allocation of RM0.9 million for a project to upgrade the State Mosque and RM 8.5 million to complete the Syariah Court in the District of SPT mean P01 Development and Chief Minister’s Office State Secretary Office.

Mr. Speaker,

86. The State Government has estimated revenue that can be collected in 2016 amounted to RM687,396,910 (Ringgit Malaysia: Six Hundred Eighty Seven Million, Three Hundred Ninety Six Thousand, Nine Hundred and Ten) an increase of RM30.47 million or 4.63% compared to budget the results of the year 2015 of RM656.93 million. The cause of the increase in revenue of RM30.47 million is expected in 2016 is of premium land in Bayan Mutiara, increasing the profits of state government investment and increase other revenues.

87. Taking into account the estimated revenue in 2016 amounted to RM687.40 million from RM979.53 million of Operating expenses, Budget 2016 will be a deficit of RM292.13 million. This deficit is expected to increase by RM61.82 million compared with a deficit in 2015 that amounted to RM230.31 million. However, taking into account the commitment of the State Government will make every effort and endeavor to boost the development of the country while ensuring that the welfare and interests of the people is guaranteed, then the budget should be implemented berdefisit. Budget deficit or lack of RM292.13 million which is expected in the Budget 2016 will be financed from the State Savings Accumulated balance of RM880.75 million at end-2014.

88. For the information of this House, since 2008, seven (7) years in a row, the State Government has proposed a budget berdefisit. However, taking into account the soundness of financial management have been applied, increasing revenue collection and reduction of arrears, practice prudent spending and the implementation of value management in construction project management in addition to the practice of open tender, the State Government has been able to end each year with a surplus or a surplus. The surplus accumulated during the seven (7) years has increased the total reserves of the State of RM373.59 million in 2007 to RM880.75 million at the end of 2014, an increase of RM507.16 million, equivalent to 135.75%. This means that the financial performance in the last 7 years from 2008-2014 with a budget surplus of RM507 million was better than the 50 years prior to this, from 1957-2007 year of RM373 million. I believe that with good governance and an open tender, budget surplus (surplus) can still be maintained and continue for this year and next year.

89. As in previous years, without taking into account the bonus announced by the Federal Government, which typically is less than the rate of administration of the State Government, the State Government will implement a bonus of half-month salary for 2015 with a minimum of RM700 as has been approved in 2014 and will be paid in December 2015. In the current State Government is very attentive to the needs of additional spending at the end of the year, especially with the increase in the cost of living in the present and hope that this bonus can somewhat ease the burden of the State Civil Service , Not to mention also, the bonus at the same rate as Special Financial Assistance will be extended to supervisors and teachers Kafa, Guru Sekolah Agama Rakyat, People’s Religious Secondary School Teachers and Teacher and Staff of Private Schools China RM300 and RM200 a Master TAHFIZ, Teachers and Kindergarten Teachers cottage Islam Negeri Pulau Pinang. Bonuses in December 2015 is expected to cost a total of RM5.22 million.

Tax exemption by MBPP and MPSP

90. As a people-centric government, the state government realized the heavy financial burden of the people as a result of the implementation of the GST on 1 April 2015. In fact, the State Government and State agencies have to bear the cost of GST that is estimated at RM46.2 million a year. The State Government has ordered the City Council of Penang Island (MBPP) and Seberang Perai Municipal Council (MPSP) to bear the burden of GST for 2016 of RM19.36 million which will be paid by the people but are borne by MBPP and MPSP.

91. In order to reduce the burden of low-income groups, the State Government has announced the grant of tax exemption for 2016 to residents of low-cost and low-medium cost where in 2015, the cumulative total will dimenafaatkan by the owner of low- and medium-cost houses prices are RM11,494,135.12.

Tax Exemption For 2016


Our young children Penang Malaysia. Let us heading towards Penang possession of all the clean, green, healthy and safe.


Thank you, Mr. Speaker, I beg to move.



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