The Penang business community may feel “squeezed” by conditions set by Putrajaya but they have adapted and are committed to make it work, despite the lack of support.

"We are not strangled (by federal control); we just did not get enough fertilisers."

That was how Penang Real Estate and Housing Developers Association chairperson Jerry Chan described the situation faced by merchants in Penang.

Chan ( right ) was asked how long the business community can thrive under such conditions, operating in a state ruled by federal opposition, and whether they felt constrained by excessive control from Putrajaya.

Instead, the business community see these challenges as an opportunity for Penangites to become "stronger and smarter".

"God gave us the sun and rain. We will grow. It did not happen yesterday. When the free port was taken away in 1969, did the state economy collapse?

"When the education system changed, what happened to the Chinese language schools? They became stronger," he told the KPMG-Penang Institute Economic Roundtable 2015 held in George Town today.

Malaysia too ‘federalised’

Chan was asked the question following his remark that the country was too "federalised", and the state is not free to implement projects related to transport, for example, as the matter is under federal jurisdiction.

The BN heads the federal government in Putrajaya, while Pakatan Rakyat with DAP secretary-general Lim Guan Eng as chief minister, has been leading Penang since 2008.

Chan cited the example of the state's attempt to improve its traffic congestion with the RM27 billion Transport Master Plan .

The plan involves a massive public transport system and the construction of highways and an undersea tunnel linking the island to Butterworth on the peninsular mainland.

"When it comes to Penang, the political powers that be (Putrajaya) assume that there will not be a change of government come next elections.

"That is why they are prepared to allow the transport master plan to go through.

"Those who are interested to bid for projects under the transport master plan will not be worried about getting licenses from the federal government.

"If you think nothing is going to change in the political landscape of the state, you might as well fill your coffers. Forget the political agenda of the state," stressed Chan.

Penang was willing to pay the federal transport commission (Spad) RM10 million to run public buses but the proposal was rejected.

"That is the sad part. If you do not give us the money, at least give (us) the license," Chan lamented.

However, Chan said when the people are "squeezed", they will work harder and smarter.

"We will make it work as we are prepared to work," he said.

The roundtable was attended by Invest Penang director Lee Kah Choon; Penang Health Association chairman Chan Kok Ewe; Free Trade Industrial Zone, Penang, Company Associations (Frepenca) president Heng Huck Lee; and school of business dean at the Malaysia University of Science and Technology Yeah Kim Leng.

Deputy Chief Minister I Rashid Hasnon gave a luncheon talk, while Penang executive council member on religious affairs, domestic trade and consumer affairs Abdul Malik Kassim

gave the opening speech.