Current Affairs

PN’s cancellation of its loan guarantee for Penang LRT is despicable political vendetta

Press Statement
28th November 2020

The Federal Government’s cancellation of its RM2 billion loan guarantee for the development of the Penang LRT is a disappointing, despicable act of political vendetta against the state and people of Penang.

The said loan is to be secured from Asian Development Bank (ADB), a reputable regional development financial institution. The state of Penang is not asking for a loan or money from the federal government for this project, so a federal loan guarantee is the least that the federal government can do for Penang.

A public survey has shown that 97.7% of respondents in Penang want LRT for the state. The then Pakatan Harapan (PH) federal government had agreed to the loan guarantee to develop Penang according to the need of the state and aspiration of the people.

In the 2021 Federal Budget, RM15 billion was allocated for:

  • Pan-Borneo Highway
  • Gemas-Johor Bahru Electrified Double-Tracking Project
  • Klang Valley Double-Tracking Project Phase One
  • Rapid Transit System Link from Johor Bahru to Woodlands, Singapore
  • MRT3 in Klang Valley

On top of these, it was recently announced that the federal government will also develop a monorail system in Putrajaya and fund the RM6 billion-transit system in Kuching under the 12th Malaysia Plan.

While multibillion-ringgit transport projects are being funded by the PN administration in other states, Penang’s loan guarantee was disappointingly cancelled. This is despite Penang being the second highest tax contributor to the country.

I urge the federal government to reinstate the loan guarantee or alternatively, fully fund the Penang LRT project.

Steven Sim
MP for Bukit Mertajam

Leave a Reply

Your email address will not be published. Required fields are marked *