Local government committee chairman Jason H’ng said efforts are ongoing to recover the arrears owed to MBSP, the country’s largest city council in terms of area under its jurisdiction.

This includes the involvement of debt collectors, the activation of a special task force to handle delinquent accounts, and lucky draws for ratepayers who pay up their dues on time.

“The council is taking proactive steps to ensure these taxes are collected, as they are essential for sustaining municipal services and development projects,” H’ng said in a written reply to Goh Choon Aik (PH-Bukit Tambun) in the state assembly.

Goh had asked about the arrears in payment to the council, the state of its finances, and its projected revenue based on a new valuation list for next year.

H’ng said MBSP reported a revenue of RM304.4 million and expenditure of RM259 million as of Oct 22.

He said the council is expecting a significant boost in revenue next year, with a new property valuation list expected to generate an additional RM10.8 million in assessment taxes.

This year alone, he said, 6,650 taxable properties have been added to the council’s list.

MBPP sees rising operating costs and staff salaries

H’ng also said the Penang Island City Council (MBPP) is seeing rising operational costs, with staff salaries and emoluments set to take up 43.3% of its total expenditure in 2025.

He said the increase follows the adjustment of the salaries of civil servants under the new public service remuneration scheme (SSPA), which came into effect this month.

The salary adjustment is expected to add RM15 million to the council’s payroll bill for 2025, he said.

H’ng said the council’s workforce consists of 3,630 personnel, including 3,458 permanent staff and 172 contract workers.

To address the growing costs, MBPP will rely on increases in revenue from non-tax sources, including fees for services, which are projected to grow from RM56.48 million this year to RM74.33 million in 2025.