The Penang government's decision to postpone plans to subject another 290 roads to parking charges has vindicated those who criticised the plan, said Penang MCA Youth head Michael Lee.

"We welcome this decision to put these gazetted parking charges on hold as it justifies our party's earlier criticism as well as the angry public voices against this desperate plan which just serves as a revenue-generating exercise while burdening the majority of vehicle owners," Lee said in a statement today.

Penang City Council (MBPP) financial management committee alternate chairperson Joseph Ng had earlier announced that the state government's plan to implement paid parking on the additional 290 roads has been postponed.

Lee said this shows that the MBPP now realises that the carpark collection plan was "foolish" all along as it further burdens Penangites who he claims are already suffering from a slew of price hikes in the state.

Chief among this was the plan to increase water tariff rates by 77 percent for consumers and 58 percent for businesses, he said.

"(This is) the fifth increase since DAP took power in Penang in 2008," Lee said.

Penang government is 'desperate'

Clearly, he said, the Penang government is in dire need to raise funds by squeezing the people to fund the increase in annual state government operating expenses since 2008.

"MCA calls on the Penang state government to admit that the state is headed for financial difficulties thus needing to squeeze the people for more money," he said.

He also asked the state government to "stop insulting the public's intelligence" by using excuses such as saying that the parking charge increase is to benefit the public.

Lee said even if the Penang government postpones the paid parking plan and water tariff hikes, it will be imposed after the 14th general election as the government "desperately" needs the money.