“GEORGE TOWN, April 30 — Penang’s financial position is still healthy so there is no need for a supplementary budget at this time, Chief Minister Chow Kon Yeow said today. He said the state government is currently maintaining a surplus position despite concerns over rising costs affecting project implementation. “If spending increases, that is what becomes worrying, but so far we are still in a surplus position,” he told reporters after officially launching the renaming of Jalan Persiaran Pantai Sinaran to Persiaran Chin Fung Kee here this morning. Chow said the state is focusing on cost-control measures to ensure expenditure remains manageable while avoiding unnecessary financial strain. He said one of the steps being considered is rescheduling projects that have yet to be awarded. “So implementation will be delayed until market conditions improve,” he said. Therefore, he said it is necessary for the state to review the timing of project rollouts. “This is a step to observe the situation until it stabilises, after which works can be awarded,” he said. Chow added that projects that are already underway will continue as planned and will not be affected by any scheduling adjustments. “This is because contractors are also facing difficulties in submitting bids during this period due to rising costs,” he added. He said there may also be requests from contractors regarding fuel prices. “For Penang Development Corporation specifically, we will negotiate with contractors who are seeking claims related to diesel price increases affecting project costs,” he said. He said the state has already decided to share the burden with contractors. “This is to ease the pressure, even though PDC will have to absorb part of the increased costs,” he said. He said the state need not introduce a supplementary budget as long as costs can be controlled and revenue collection meets projections. Yesterday, government spokesman Datuk Fahmi Fadzil said all ministries, agencies and government departments have been instructed to spend moderately as a measure to reduce financial pressure following global economic uncertainty that has also affected Malaysia. The directive was issued by Prime Minister Datuk Seri Anwar Ibrahim to ensure government spending is carried out more responsibly and prudently.
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