Penang does not require a supplementary budget for the time being as its financial position remains strong despite global uncertainty, says Chow Kon Yeow.
GEORGE TOWN: Penang does not require a supplementary budget for the time being as its financial position remains strong despite the global economic uncertainty.
Chief Minister Chow Kon Yeow said the state government will continue to focus on cost control and ensure that revenue collection proceeds as projected to maintain its current financial standing.
He said a prudent approach does not mean not spending, but rather ensuring that expenditures are managed wisely so that the deficit can be reduced or the financial position remains in surplus.
“Our financial position remains healthy, and there is no need for a supplementary budget for now. If spending continues to increase, that would be a concern, but for now, we are still in surplus and will continue to control costs,” he told reporters after an event to rename Persiaran Pantai Sinaran to Persiaran Chin Fung Kee here today.
He was responding to questions about whether the state government need to revise its budget as a cost-saving measure amid current global economic uncertainties.
Elaborating further, Chow said the state government will review project implementations that have yet to be awarded, including the possibility of rescheduling or delaying based on the current economic situation. Ongoing projects will proceed as usual.
This is being considered in light of challenges faced by contractors bidding for projects following cost increases, including fuel and construction materials.
Chow said negotiations will be held with contractors making claims for the rising operating costs, particularly for projects under the Penang Development Corporation (PDC).
PDC has also decided to share part of contractors’ cost burden to ease the pressure the construction industry is facing.
