Announcing this during his 2020 Penang Budget speech today, Chief Minister Chow Kon Yeow (DAP-Padang Kota) said the project, called “Coastal Resort and Spa”, will see the state investing RM10 million.
“The international-standard project will have 80 to 100 rooms and spa facilities by the beach.
“The state government is optimistic this project would boost the tourism industry and economy of the locals,” he told the state assembly.
Chow said the project would be co-developed with the private sector, under a “public-private professional partnership” concept.
Chow also announced Penang’s New City Core (PNCC) project which would see the development of the waterfronts at Weld Quay on the island and Butterworth in Seberang Perai.
“We want to ensure maximum use of land and the project has a positive impact on the state.
“The PNCC is expected to boost the state’s economy tremendously.”
Chow announced RM20 million had been set aside to develop Penang’s first-ever Urban Transformation Centre (UTC) at Komtar.
Penang Development Corporation (PDC) will bear the cost of the UTC, while the finance ministry will chip in another RM5.2 million.
Deficit budget tabled
Chow later tabled a RM792.6 million budget for 2020, with a deficit of RM273.5 million. He said the deficit was 30% lower than the RM395.6 million under the 2019 budget.
Chow said RM269.3 million was earmarked for development under the budget, a decrease of RM37 million or 12% less than the RM306.3 million under the 2019 budget.
Operating expenditure has dropped by 12%, or RM108.5 million, compared to 2019’s RM901.1 million.
Chow said the lower operational expenditure is due to reduced contribution to the State Development Fund, expected in 2020, which is expected to be about RM150 million, compared with RM230 million in 2019.
He said the reductions would not affect development projects for 2020. He said most of the budgeted funds will be spent on provisioning expenditure and fixed payments.
Chow said the state expects to spend RM181.6 million in emoluments (salaries), RM181.2 million on services and supply, RM4.2 million for asset acquisition, RM421.3 million for fixed income provisions and RM4.2 million for other expenses.
Chow said the development budget for 2020 is at RM269.3 million, a drop of 12% compared to 2019’s RM306.3 million.
Allocations for nine state departments are as follows: Finance Office RM152.3 million; Chief Minister’s Office RM53.1 million; Public Works RM24.1 million; Drainage and Irrigation RM17.5 million; Islamic Affairs RM11 million; Agriculture RM4.9 million; Veterinary Services RM2.9 million; Forestry RM2 million; Botanic Gardens RM1.1 million.
He also announced that a total of RM104.5 million had been allocated for flood mitigation projects in 2020.
To preserve Islamic interests in the state, a total of RM60 million has been allocated for 2020.
A total of RM12 million in aid has been allocated for Islamic, missionary, Chinese and Tamil schools.
He said RM15.4 million had been allocated for the development of Penang Hill. A total of RM35.8 million has been allocated for tourism development.
Chow said the Village Community Management Councils (MPKK, formerly JKKK) have been allocated RM4.1 million. To improve gender inclusiveness, a total of RM1.5 million has been allocated to the Penang Women’s Development Corporation.
“We promise to carry out projects that have value for money, for every sen spent. Projects must also have a positive impact on people.”