Chow defends PDC bonuses, MCA questions Camry purchase

Summary

• Six-month bonus awarded to only one-quarter of PDC staff, with the remaining employees given five months’ salary in recognition of their strong performance, CM explains.

• Chow also faces public scrutiny from MCA, over the acquisition of 15 Toyota Camry cars for state government use.

Penang Chief Minister Chow Kon Yeow has defended the controversial six-month bonus payout for Penang Development Corporation (PDC) staff, emphasising that it was merit-based and linked to performance metrics.

In a written statement to Air Putih assemblyperson Lim Guan Eng, Chow said that bonus payment was awarded to only a quarter of PDC employees, whilst the remaining staff received five months' salary as compensation for their "excellent results", according to Free Malaysia Today.

He explained that the decision was based on several key achievements, including a 91 percent increase in profit, rising from RM276.6 million in 2023 to a record RM527.1 million in 2024.

Chow (above) also noted that PDC had met its revenue target by achieving 104 percent and maintained expenditure at 96 percent of its allocated budget last year.

In addition to implementing several high-impact investment programmes, Chow highlighted that PDC saved RM8.6 million in interest by settling loans ahead of schedule.

The chief minister’s clarification came after Lim yesterday urged his successor to explain why the state's consolidated revenue account of RM1.15 billion in 2019 declined by nearly RM1.1 billion at the end of 2024.

He also questioned how the state government ended up owing RM300 million to PDC, and the need to pay a six-month bonus to PDC service members, when there are unsolved issues.

In the written reply, Chow, however, said that those concerns were already accounted for before the bonuses were approved.

He reportedly said that the PDC had also taken steps to address project delays, including the implementation of recovery plans.

New cars for officials while rakyat suffering?

Chow also came under fire today for the purchase of over a dozen vehicles for the state government's use, including its state executive councillors and the state assembly speaker.

He said that the 15 Toyota Camry 2.5V vehicles were purchased for RM3.31 million, including road tax and excise duty, with each car costing an estimated RM220,783, Bernama reported.

MCA chided Chow for the move, describing the purchase of such luxuries as “shocking” and “insensitive” in the wake of the people’s hardship.

"The DAP-led Penang state government must be held accountable for its shocking extravagance - requesting RM100 million in advance from the federal government while splurging RM3.31 million on a fleet of brand new official cars," its vice-president Tan Teik Cheng said.

The Penang state liaison committee chairperson was referring to the federal government's assistance in 2024 in the form of an advance payment of RM100 million to cover cash flow and projects worth billions of ringgit, such as the LRT, expansion of the Penang International Airport, and the Sungai Dua-Juru elevated highway.

"This is not just poor timing; it is a betrayal of public trust. When Penang’s finances are under pressure and cash flow is tight, using public funds for luxury vehicles sends a cruel message: the comfort of officials takes precedence above the struggles of ordinary citizens.

"Worse still, this comes as the government plans to raise a series of taxes and fees, including quit rent, hotel tax, liquor licence fees, enforcement charges, and even veterinary service fees to tackle cash flow issues.

“With Penangites already burdened by rising cost of living, the timing of this decision couldn’t be more insensitive," Tan added.

He said that the Penang government’s fiscal approach of borrowing, taxing, and spending was "unsustainable, undisciplined, and devoid of empathy."

Tan also asked Chow to explain the decision-making process behind the car purchase and to justify its budgetary priorities.

"More importantly, it must commit to a full review of its spending to eliminate waste and stop prioritising perks for top public officials," he added.

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