Instead of distributing the spoils of the Northern Corridor Economic Region (NCER) to a few Umno-linked companies, let Penangites themselves share the benefits of the development program through the set-up of a stakeholders' company.

Mooting the idea, DAP's secretary-general Lim Guan Eng said it would also ensure that low-income groups on the island state would not be marginalised by its transformation into a playground for the rich.

Among those named as main beneficiaries of the development projects slated for Penang are those closely linked with the leading Barisan Nasional party Umno.

These include UEM Builders Bhd which, together with China Harbour Engineering Co Ltd, has been tasked to build the RM2.7 billion second Penang bridge connecting the mainland to the island.

Another government-linked company, Malaysian Resources Corporation Bhd, was awarded along with Pelaburan Hartanah Bumiputra Bhd, the RM2 billion Penang Sentral integrated transport hub project.

The windfall of the NCER project in Penang, however, would fall to Abad Naluri Sdn Bhd, a company linked to Patrick Lim , a figure closely associated to Prime Minister Abdullah Ahmad Badawi.

Abad Naluri, an associate company of Lim's Equine Capital Bhd, has been tasked with developing the RM18 billion Penang Global City Centre.

Government-linked conglomerate Sime Darby, which drew up the NCER masterplan, will act as the plan's manager and investor.

Driven off the island

"Why should only these crony companies of Umno benefit from the huge profits of these projects?" asked Guan Eng in a statement issued today.

"Instead of letting a few construction companies such as UEM World and MRCB benefit under the NCER, the Penang government should form a stakeholder company to allow 1.5 million Penangnites to share in the profits.

"Such a stakeholder company belonging to all Penangnites would allow all profits to be channeled so that they can be used for the welfare and benefit of the common good," he added.

The NCER is a government initiative to boost the economy and raise income levels in the northern states of Perlis, Kedah, Penang and Perak over 18 years.

The masterplan includes key benchmarks, with the agriculture sector expected to increase its exports to RM48 billion by 2012 from RM32 billion in 2005.

For manufacturing, investments are projected to jump to RM24.3 billion by 2012 from RM16.5 billion in 2006, while the tourism sector aims to raise average spending per visitor to RM3,034 by 2012 from RM1,890 currently.

According to Guan Eng, as Penang's cost of living and property prices will escalate under the NCER, "it would be impossible for a young family to purchase a house on Penang island, with the RM18 billion Penang City Centre catering for the wealthy."

"Where would the lower-income groups on Penang island be under the NCER? Unless they are given a stake in the stakeholder company, they will have no place, be marginalized and driven off the island," he said.

Guan Eng also pressed on Penang chief minister Dr Koh Tsu Koon to prove that the state - despite official pronouncements to the contrary - would not be marginalised by the NCER.

Uneven contribution

In a statement last week, Guan Eng said very little numbers have been disclosed as to the actual share of the pie that Penang will receive as part of the RM177 billion to be divided between it and the farming states of Kedah, Perlis, Perak for the NCER.

"Unless the government gives a breakdown, the NCER marginalizes Penang, as the main thrust of agriculture is not the comparative and competitive advantage for Penang," he added.

He also compared the NCER and the plans for Penang with Johor's Iskandar Development Region (IDR) which targets RM50 billion over the first five years and RM383 billion target over 20 years.

He said further that facts derived from the Malaysian Industrial Development Authority prove that Penang had lost out to Johor - which received in the first quarter of this year a total of RM 2.489 billion of domestic and foreign investments.

"Penang pales in comparison with only RM178 million comprising of RM81 million in domestic investment and RM 97 million in foreign investment," said Guan Eng.