Is Penang facing financial crisis, MCA asks Chow over welfare cuts

Summary

• MCA asks whether reports of iSejahtera cuts in Penang mean the state government is facing a financial crisis.

• Party vice-president Tan Teik Cheng calls on Penang Chief Minister Chow Kon Yeow to clarify whether reports of financial aid cuts are true.

MCA asked whether reports of iSejahtera cuts in Penang mean that the state government is facing a financial crisis.

MCA vice-president Tan Teik Cheng called on Penang Chief Minister Chow Kon Yeow to clarify whether news reports on reducing iSejahtera aid and raising the age of eligibility are true.

“If this report is true, then Chow needs to explain whether the Penang state government is indeed facing financial difficulties.

“Otherwise, why is the welfare of Penangites being sacrificed at a time when the cost of goods is rising?” Tan (above) said in a statement today.

Earlier today, the New Straits Times reported Chow as saying that the Penang government is mulling a review of its welfare programmes, especially iSejahtera.

He said this is due to rising costs and the need to effectively target aid recipients.

He explained that the iSejahtera programme would need strong financial backing to continue as it demands significant expenditure.

New initiatives may also be introduced, he added.

Sharp drop in state reserves

However, Tan described this potential move as a blow to senior citizens who are already struggling with the rising cost of living.

“According to media reports, the state government’s reserves in 2018 stood at RM1.8 billion, but merely just after seven years, only RM50 million remains.

“In a situation where the state government has various sources of tax revenue, how could the reserves have been almost completely spent in such a short period? To the point of sacrificing aid for the elderly?” he said.

He said cost-cutting measures should first be implemented in other areas, such as reducing unnecessary administrative expenses.

Chow had said that the cost of the iSejahtera programme rose annually as there has been a growing number of registrants, especially senior citizens.

He added that the programme will not be entirely discontinued, saying that resources will be adjusted and redeployed as needed.

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