GEORGE TOWN – Former Penang chief minister Lim Guan Eng has raised concerns about the Penang Development Corporation (PDC) awarding bonuses of up to six months to its employees earlier this year.
He believes that the profits generated should be invested in the development of the state instead.
On February 9, Datuk Aziz Bakar, the CEO of PDC, announced that 396 employees would be awarded bonuses between one to six months, depending on their performance.
This decision comes after the agency achieved over RM500 million in profits for 2024, marking the highest earnings in its history since it was founded in 1969, according to reports.
It is understood that around 10% of the employees would receive the complete six-month payment.
Guan Eng (Air Putih-PH) stated that the RM6.7 million bonuses would seem fair if they weren’t the topic of gossip among state civil servants. However, there are concerns about whether other state government entities that have been generating significant profits would also be receiving similar bonuses.
“As a government agency tasked with managing land banks in Penang, it should have the chance to benefit from the substantial profits generated, but these profits need to be allocated for development purposes,” said Lim at the state assembly today.
“If there are concerns about the bonuses, I believe it’s important to explain the reasoning behind them and the large amount involved.
“Can the state government clarify how many staff members received bonuses equivalent to six months’ pay?”
Yesterday, backbencher Joseph Ng (Air Itam-PH) expressed concerns about the timing of the bonus, labelling it as “ill-timed” in light of the state’s current financial difficulties.
The DAP assemblyman pointed out that the bonuses could create an unfair situation by creating a disparity between PDC staff and other civil servants, who are facing budget cuts this year and have only received modest year-end BKK (Bantuan Khas Kewangan) payments.
In November last year, Lim voiced his worries in the state assembly regarding the significant drop in the State Consolidated Fund, which decreased by RM1.1 billion over a five-year period, even though the state was performing well economically.
He pointed out that Penang’s economy has seen significant growth, reaching RM116 billion in gross domestic product, keeping inflation in check, drawing in considerable investments, and benefiting from a positive trade balance.
Nonetheless, the state’s reserves in the Consolidated Fund have drastically decreased from RM1.15 billion in 2019 to only RM50 million in 2024. – May 20, 2025