State GLCs put Penang on top during opposition days, assembly told
Chief minister responds to calls by backbenchers for state GLCs to be cut down or restructured to save money by saying the GLCs helped put Penang where it is today.
GEORGE TOWN: State government-linked companies (GLCs) have been the pulse of Penang’s economy and development for the past 10 years, the state assembly heard today, following calls by backbenchers to downsize them.
Chief Minister Chow Kon Yeow (DAP-Padang Kota) said the state GLCs had been instrumental in turning the state into a powerhouse of investment, tourism and industries.
He said the role of the GLCs became prominent at a time when Penang was under opposition rule and federal agencies were reluctant to offer help.
“Please do not forget, when we were ignored by the federal agencies for the past 10 years, the state GLCs brought us to the level of success we are enjoying now,” he said in reply to Lee Khai Loon (PKR-Machang Bubuk) at the state assembly today.
Lee had asked if the state would consider restructuring state GLCs so as not to overlap with the functions of federal agencies, as well as reducing the number of such companies.
In a supplementary question, he asked Chow if he would consider tabling the budgets and finances of the respective GLCs in the state assembly to ensure transparency.
Chow said he would take the restructuring idea into consideration but for the time being, he would ensure that the state GLCs were doing their jobs.
He said while the state GLCs were not obliged to reveal their finances to the state as they were not statutory bodies, the proposal would be taken into consideration.
“Perhaps we will table their budgets as a form of notification to the state assembly in the future, for the sake of transparency,” he added.
Chow said best corporate practices were already being used in running and staffing state GLCs, by offering the chief executive positions to professionals.
“The board of directors of these state GLCs in the future will not be political appointees or offered a high pay.
“Instead, we will give an appropriate remuneration and bonuses based on their performance, commensurate with how the respective companies’ finances are,” he said.
Satees Muniandy (DAP-Bagan Dalam) then asked if the state government had ensured that its investments in state GLCs had borne fruit and if there was a monitoring mechanism in place.
Chow said the companies were closely monitored. He gave the case of the Penang Convention and Exhibition Bureau, where the state had invested over RM1 million in a particular year.
He said in return, the investment had garnered over RM1 billion in returns to the state, in the form of more meetings, exhibitions and conferences from foreign countries.
Chow added that there were currently 11 state GLCs with a total allocation of RM87.2 million from 2016 to Sept 30 this year.
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In that period, the highest recipient of the RM87.2 million was Penang Global Tourism Sdn Bhd at RM23.08 million, followed by George Town World Heritage Incorporated (RM13.74 million), with an additional RM13 million for the George Town Festival, while the Penang Institute received RM12.82 million.