Penang needs a RM2.1 billion economic stimulus package to reflect proportionately the northern island-state's 30 percent contribution to the country’s total export.

lim guan eng pc 270209 Penang Chief Minister Lim Guan Eng wants the Putrajaya administration to set aside the fund from its RM7 billion stimulus package unveiled recently by Finance Minister Najib Abdul Razak.

"If Penang fails, Malaysia too would fail. The federal government owes the people of Penang for their enormous contribution to the country’s economic growth and export revenue," he said in a statement today.

He said the current allocation of RM55.7 million from the stimulus package would not be adequate and sufficient to carry out various development projects in Penang.

In his reply to a written parliamentary question from Lim, Prime Minister Abdullah Ahmad Badawi said RM55.7 million would be allocated to carry out programmes and projects under various ministries in Penang.

Lim also asked when the federal government would carry out the RM1.5 bilion Penang Outer Ring Road (PORR), RM2 billion monorail and RM1.2 billion Mengkuang Dam expansion projects.

Of the RM55.7 million, RM15.9 has been set aside for public infrastructure projects under the Prime Minister’s Department, RM10.4 million as cash aid for government-aided religious, missionary and vernacular schools and RM9.4 million to upgrade police stations and staff quarters under the Home Ministry.

Another RM6 million is to upgrade, renovate and refurbish hospitals and clinics, RM4.3 million more to carry out rural road projects, RM3 million for maintenance of public houses, RM2.6 million to upgrade, maintain and refurbish national schools and RM1.5 million to sponsor sports and skill training programmes.

Important projects

Lim said the expansion project for Mengkuang Dam was important to increase the water storage capacity and meet the rapidly increasing demand for water supply in the state.

The project was scheduled to be carried out for four years in two phases – one to expand the dam and other to upgrade and expand and pipelines to increase the raw water supply to the dam.

An initial RM154.4 million was set aside under the Ninth Malaysia Plan (9MP) for the project’s early works such as land acquisition, engineering designs and preparation of tender documents.

Lim said the federal government should realise that Penang needs the fund not only to carry out the crucial dam project, but also to overcome its rapidly choking traffic flow in the city.

"The dam, PORR and monorail are important projects to provide a comfortable living environment and stimulate economic growth in the state," said Lim, also the Bagan parliamentarian.