GEORGE TOWN – Chief Minister Chow Kon Yeow emphasised today in the state assembly that Penang should not feel embarrassed about relying on the sale of land banks for financial sustainability, especially given the limited natural resources available to the state.
Chow (Padang Kota-PH) defended the state’s practice of opening and selling land banks, highlighting it as a long-standing strategy for revenue generation and development in Penang.
“Penang lacks gold mines, timber, or other natural resources. So, why should we be ashamed of considering land as our asset?” Chow asked during his closing remarks at the assembly.
“What is there to be ashamed of in using land banks for revenue generation if it has been driving socioeconomic development for fifty years?”
He further explained that land sales are not just about boosting state revenue but also play a crucial role in promoting socioeconomic growth, creating jobs, and enhancing the economic value of specific areas. He noted that these land transactions act as catalysts for the state’s economic advancement.
Chow was responding to Mohd Yusni Mat Piah (Penaga-PN), who questioned the state’s land sales in relation to its financial needs during a debate on the motion of thanks for the state governor.
The Chief Minister also pointed out that none of the assembly members had proposed alternative revenue-generating methods aside from the sale of land banks.
In his closing speech, Chow clarified that technically, Penang is not “selling land” but rather disposing of it through leases, alienation, or other methods in accordance with the National Land Code.
For context, Penang has been using land banks to establish industrial parks that attract global investors to set up operations in the state. The opening of land banks is also linked to coastal reclamation, which can lead to conflicts with stakeholders like fishing communities and civil society groups.
Planning for a financially stable future for Penang
In a separate note, Chow, who is approaching the end of his second term as the state’s leader, expressed his desire to leave Penang in a strong financial position, aiming for RM1 billion in the State Consolidated Fund for his successor.
His comments come after the state confirmed receiving a RM100 million cash advance from Putrajaya to address a projected deficit this year.
Chow stated that achieving the RM1 billion target would provide the next administration with the financial flexibility needed to support development and public welfare initiatives in the state.
“I can confidently say that this state will be handed over in excellent condition, with a strong financial foundation when my successor takes over the administration,” he said. – May 22, 2025