HEADLINES

Chow defends RM3.31mil official car purchase, PDC bonuses despite backlash

Penang CM says state government must replace its official vehicles every six years to manage rising maintenance expenses, while PDC bonuses only 1.3% of its profit

5:20 PM MYT

 

GEORGE TOWN – Penang Chief Minister Chow Kon Yeow has addressed mounting criticism over the state government’s decision to purchase new official cars and the Penang Development Corporation’s (PDC) move to grant six months’ bonuses to its staff. 

On the RM3.31 million acquisition of 15 Toyota Camry vehicles, Chow said a 2013 policy mandates the replacement of official cars every six years to reduce maintenance costs. The new fleet replaces vehicles bought in 2019. 

He clarified that the replaced cars are still in use by state officials and remain part of the government’s car pool. 

“These vehicles will remain in use for many years. We have not sold them; they are retained in our car pool,” he said during his closing remarks at the state assembly. 

Chow, in a speech later shared with the media, said maintaining older official cars has led to rising expenses, averaging RM42,144 per vehicle for executive councillors and state officials. 

The new Toyota Camry 2.5V (AT) (CBU) models were delivered on March 4 and officially handed over on April 4, with each unit costing around RM220,780, including road tax and excise duty. 

Of the 15 vehicles, 10 are allocated to executive council members, three to ex-officio members, and one each to the speaker and deputy speaker. 

The purchase drew criticism from MCA, with Penang chapter chief Datuk Tan Teik Cheng calling it ill-timed amid economic hardship and rising living costs. 

“This car purchase is unacceptable. The funds should be allocated more judiciously,” he was quoted as saying. 

Penang Muda also voiced disappointment, citing the financial pressures currently facing the state. 

Separately, in defending the six-month bonuses awarded by PDC, Chow – who also heads the state development agency – said only 91 staff received the payments. The RM6.8 million payout accounts for just 1.3% of the RM527.1 million profit recorded by the agency in 2024. – May 22, 2025 

Topics

 

Popular

Petronas staff to be shown the door to make up losses from Petros deal?

Source claims national O&G firm is expected to see 30% revenue loss once agreed formula for natural gas distribution in Sarawak is implemented

InDrive faces termination for flouting guidelines

It is the second Russian e-hailing app after Maxim to face ban by Land Public Transport Agency

Cleared for layoffs? AirAsia to retrench 20% of workforce in major cost-cutting move

This allegedly involves cabin services, cargo and logistics, engineering and maintenance, as well as the commercial division, according to Scoop’s source

Related