Why privatise Penang wet market and push rental up, asks group

Why privatise Penang wet market and push rental up, asks group

A pressure group asks why the city council decided to privatise the market amid claims that traders have been told they’ll have to pay up to RM1,600 a month in rental.

Socialist Progressive Front’s Teh Yee Cheu (right) and Chua Cheong Wee talking to a trader at the Jalan Sungai area in Batu Ferringhi.
GEORGE TOWN:
A pressure group here has questioned the move to give a new RM9 million market in Batu Ferringhi built by the Penang Island City Council (MBPP) to a private party to be operated.

The Socialist Progressive Front’s Teh Yee Cheu said privatising the market was a form of dereliction of duty as the market ought to be run by the council since it was funded by ratepayers.

He claimed news of the privatisation of the market at Jalan Sungai 1 came as a shock to some 50 hawkers who had previously operated by the roadside.

The former two-term Penang assemblyman said MBPP had called the hawkers for a briefing on Nov 11 where they were informed that the rent for space in the new market would be between RM750 and RM1,600 a month.

“A roti canai man was quoted rent of RM1,500 and a fruit stall owner, RM750. A fishmonger was quoted RM1,060, and a vegetable stall owner, RM1,600.

“Is this an acceptable rent when other MBPP markets charge RM75 a month, with electricity, for space at the market?

Socialist Progressive Front’s Teh Yee Cheu (left) and Chua Cheong Wee outside the market which they say has been privatised.

“The Penang government must intervene against this decision as it is not people-centric at all,” he said when contacted.

Teh said markets should be operated by the council and not privatised, as it could force prices of consumer goods to rise.

“The high rent would push traders to pass the cost on to consumers. But with such exorbitant rent, I don’t think there will be many people eager to rent space here, in the first place.

A letter from MBPP given to the traders to attend a talk at the market. It was there that they were told about the new rental rates.

“MBPP must clear the air. Why wasn’t there any consultation held before it was privatised? Why is the council shifting its responsibility to provide the necessary services to a private company?” he asked.

In an immediate response, MBPP said it was in the process of appointing a company to “manage and maintain” the market.

“One of the conditions set by the council to the company was to impose reasonable rental and service charges for traders.

“Until now, the council has yet to decide on the rental rate that has been proposed. An announcement will be made once the rate has been finalised,” the council said in a statement.

A picture of the market via Google Maps.

Construction of the market started in June 2014. It was supposed to be completed in a year, but work was delayed as contractors found large boulders under the 2.2-acre site.

Three extensions were granted to the contractors. However, when former chief minister Lim Guan Eng visited the completed market in 2017, he was so upset with the defects that he asked for the market’s opening to be delayed until the defects were rectified.

The two-storey market features 16 food stalls, 28 dry and wet market stalls, a 600-people capacity hall, and three badminton courts on a 0.7-acre built-up area. There are 74 parking lots, and another 44 for motorcycles and 29 for bicycles.

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