DAP Chief Minister irresponsibly manipulating facts to confuse the rakyat

Penang DAP Chief Minister Lim Guan Eng is confusing Penangistes with the annual budget allocations for Penang and in the same breadth, politicize the ‘division of annual economic’ by the Federal Government.

The Star has the story:

Published: Saturday December 26, 2009 MYT 5:39:00 PM

Penang got just 3% of what it had contributed: CM


GEORGE TOWN: Penang has only received RM794mil in federal grants in the last eight years even though it had contributed RM25,670mil in taxes and custom duties.

Chief Minister Lim Guan Eng said the numbers were revealed by Finance Minister Datuk Seri Najib Tun Razak in a written reply in the recently concluded Parliamentary sitting.

“Penang received only a shocking 3% of what it had contributed from 2001 to 2008.

“The state has been left out of the development mainstream too long and that has resulted in a slower rate in the building of public infrastructure compared to other states,” he said in a statement on Saturday.

He added that even Singapore’s Minister Mentor Lee Kuan Yew had made the observation that Penang was developing slower compared to other towns like Ipoh or Seremban.

“The Penang government will seek a fair deal from the Federal Government to allow all Penangites equal opportunity for success and prosperity regardless of race or background.

“Our efforts in ensuring that everyone has a share in the fruits of economic success has led Penang to become the first state to wipe out hardcore poverty with every family receiving at least RM500 a month,” he said.


The fact is that, the Federation of Malaysia is about the practice of a centralised government. It means that income of the nation is collected by the Federal Government. Income taxes, import taxes, excise duties and such, are all incomes as stipulated by the Federal Constitution. Income and taxes derived from land matters such as rates, assessment rates and conversion fees are incomes as per stipulated by state constitution.

So are the expenses, meant for the nation. Federal Government pays for security (Police, Military and Martime Enforcement), education (primary, secondary and tertiary), health, infrastructure development such roads, bridges, ports, airports, electrification and social development such as labour, human capital development, agriculture, entrepreneur development and welfare matters.

As so, state governments no longer needed to look into these investments and spending. They should just focus on state programs, especially programs under local authorities and state agencies. Local authorities themselves collected a huge amount of income annually.

For Lim Guan Eng to quote Lee Kuan Yew that Penang is left far behind in development compared to Seremban is utterly false. In a short instance, Penang enjoyed Federal Government capital and operational expenses of the Penang Bridge, Penang International Airport and USM, as compared to Seremban. 35 years ago, UDA invested on the Komtar in Penang, instead in Kuala Lumpur. Penang is one of the states which immensely benefitted from Federal Government contiunous trade and investment programs abroad, which include trade missions and dialogues. Malaysia Airlines, which is a Federal Government GLC even operate directly to major world cities from Penang International Airport.

In the terms of security, Penang is a state where an infantry division is based. There is also a TUDM air base in Butterworth, which is operational despite is strategic and operational utility is doubtful (considering TUDM developed more strategic bases in Kuantan, Pahang and Gong Kedak, Terengganu). The Penang CPO is the rank of Deputy Commissioner of Police. This post was elevated together with Johor and Perak, to join the ranks of the states such as Kuala Lumpur, Selangor, Sabah and Sarawak. This was even earlier as compared to Pahang and Kedah.

This statement by the DAP Secretary General depicts their Chinese Chauvinist attitude of continuously rubbishing the Malay controlled Federal Government, even by manipulating facts and circumstances. As a chief executive of one of the most productive economy in the Federation of Malaysia, it is irresponsibile for Lim to make this statement, especially in this tone. Penang is contributing to the national wealth undoubtably resulted from Federal Goverment’s continuous ‘investments’  and ‘promotions’ for the state.

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14 CommentsLeave a comment

  1. This simplistic statements by Lim Guang Eng is misleading and dangerous. The investments from the Federal Goverment needs a return.

    Perfectly true when you wrote “Penang is contributing to the national wealth undoubtably resulted from Federal Goverment’s continuous ‘investments’ and ‘promotions’ for the state.”

    Somtimes it is not only the Malay who are “mudah lupa”.


  2. A company which is generating high cash flow needs a fixed level of CAPEX annually to sustain those cash flows, ensuring growth.

    Penang is like a company. However, if little CAPEX is going back to Penang, then Malaysia is shooting its golden goose.

    You argue money is spent investing in Penang’s infrastructure. But this spending is absolutely necessary. Without infra spending, its cash flow will be jeopardised.

    Fact is major companies are based in Penang for a reason. Penang is unique as it has a natural advantage over other states, international trading history, natural beauty, good standard of living and high income level. Its success is probably also due to its diverse demographics when compared to other states in Malaysia. Diversity encourages thought which drives creativity. New ideas result in a competitive and successful business environment.

    The federal government can try curtailing Penang’s growth and channeling federal funds to other states but I am willing to bet my last dollar that other states will fail to replicate Penang’s success.

    Yes, BN lost Penang and is unlikely to win in the next general election but BN will be shooting itself in the foot as the Federal Govt’s funding situation is not looking too rosy.

    • How can DAPigs expect to gain without pain????

      Typical of DAPigs (a bastard son of Singapore’s PAPigs) to behave & show their ‘KIASUNESS’!

      Of coure if federal spent on so much for capex, they are the one rightfully to recover the returns! All these while, all the capex hv been footed by federal spending (not state spending). Even so, federal gave Penang the grace to be spend with all these capex becoz Penang was under BN all the while.

      Penangites definitely need more Ahmad Ismail to teach all these KIASU BASTARDS!!!!

      I hope DS Najib will consder all these before he announce the new economic model in Feb!

      • I bet with my last ringgit that Najib is going to liberalize more sectors of economy because he thinks that the Malay is ready for challenge NOT living in green house and get protection.

  3. ello.. guan eng aaa…. lu mau secede macam singapore ka? lu jangan chauvinist aaa….

    • Bodoh orang yang fikir and tulis begitu. Jangan tulis disini lagi.

  4. Fat boy i pray n hope u have a family n a soul as after this there is nothing more to say for our beloved Malaysai.

  5. Apa ni? Pay taxes and expect something back in return? Which planet is Guan Eng from?

    Let’s go back to the basics, shall we? Economics 101:

    Government imposition of taxes has two specific objectives:

    1. Raise Revenue
    2. Redistribution of wealth

    In 2006, Penang GFP is RM 41,516 and a GDP per capita of RM 30,490 which is the second highest in the country aftrer KL. Kelantan was the lowest at RM 6,012. The national average was RM 21,563.

    Tradional ecomomic theories suggest that federal taxes would be better put to use in less developed communities. Robin Hood theory; take from the rich, give to the poor.

    I used to pay over RM 100k a year in taxes when I was working. I hardly get anything back nor did I complain. After all, kita Melayu, kita kaya. Bayar!

    The fact that Penang significantly contributes to the federal coffers suggest that they are better off than most states and do not require hefty federal assistance.

    Guan Eng’s whining is totally contrary to PR and DAP underlying mandate of championing for the people (of Malaysia.) Or maybe he is preparing a foundation for the secession of Penang from Malaysia

    • Correction

      Should read : In 2006, Penang GDP was RM 41, 516 billion…

    • I don’t think he and his father have much grey matter up there. Even before the Police fully launched their investigation itno Teoh Beng Hock’s death, he put out a statement holding MACC responsible for the death. Nobody with sufficient grey matter in his head would do that. And the father, by his silence, consented to the no-brainer statement.

      You see, these are the ungrateful ingratiates (a double whammy there) who keep asking more, more and more since their kind got citizenship in Malaya after being stateless for 100 years even during the entire British colonial rule. They even try to question Article 153 Special Position of the Malays despite their leaders
      having agreed to it in echange or as a quid pro quo for the Malay leaders at Merdeka agreeing to their citizenship right. That’s the kind of mentality that talks in terms of getting a sen for every sen they collect. They conveniently forget the myriad of financial obligations the Federal Government has to carry out other than grants to the small island.

      What ridiculuous and ludicrous lot these Lims and their kind. God helps Malaysia if these people are allowed to run the country. They even want to use the Muslim zakat money in Selangor. Goodness gracious.

    • Bro All Golf

      100K a year income tax? My whole life income tax contribution as an officer in ATM is no where near: way, way down man!!

      Glad to have a Malay like you. Good comment my brother.


  6. Kalau DAPigs ni nak kutip & urus tadbir cukai sepenuhnya, maka nanti kerajaan pusat patut kenakan bayaran cas (charge) kepada Penang:

    1. Bayaran utk kesihatan
    2. Bayaran utk kemudahan awam & infra
    3. Bayaran utk polis & kententeraman awam
    4. Bayaran utk bomba & bantuan bencana
    5. Bayaran utk kemudahan asas pelajaran
    6. Bayaran utk siaran TV & radio
    7. Bayaran utk Tourism Malaysia mempromosikan Penang
    8. Bayaran sewa utk infra telekommunikasi & elektrik
    9. Bayaran sewa utk jalanraya & pembentungan
    10. Pajakan & royalti mengunakan ‘Jalur Gemilang’, ‘NegaraKu’, Perlembagaan Persekutuan & kedaulatan Malaysia sebagai negar merdeka & ahli PBB, Oic, Nam sbgnya
    11. Pajakan sewa utk negeri Pulau Pinang, kerana menjadi sebahagian dari Persekutuan Malaysia\
    12. Royalti kerana TYT Gabenor Pulau Pinang dalah ahli Majlis Raja Raja

    Nanti aku sambung lagi…..(bila aku terpikir)

    • Biar kami tambah:

      1.Segala pesawat untuk ke Pulau Pinang, samada membawa penumpang atau kargo, dikehendaki membayar ‘sewa ruang udara’ kerana melintasi Malaysia. Nanti kos untuk bercuti, berniaga dan mengekspot barangan ke dan dari Pulau Pinang akan menjadi amat mahal.

      2. Mereka juga perlu mebayar untuk kegiatan anti penyeludupan dan cetak rompak

  7. […] very good in manipulating facts and figures, by sensationalising it. The most recent example is the Federal Government annual allocation for Penang Vs income derived. The over sensationalisation and quick-blaming of MACC for DAP State Exco Political Secretary Teoh […]

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