Penang Development Corporation

GEORGE TOWN — Penang Chief Minister Chow Kon Yeow (picture) has defended the decision to grant a five-month bonus to Penang Development Corporation (PDC) staff.

He said the PDC Board has approved a performance incentive equal to five months’ salary, based on the Balanced Scorecard (BSC), which recorded exceptional performance in 2024.

He said the performance surpassed the set target of 85 per cent, and only 25 per cent of PDC staff received the highest bonus of six months.

“The justification for the performance incentive is based on evaluations, including a pre-tax and zakat profit achievement of RM527.1 million last year compared to RM276.6 million in 2023, representing the highest increase at 91 per cent.

“The overall budget performance was excellent, with 104 per cent revenue realisation and 96 per cent expenditure, while early loan prepayment interest savings were estimated at RM8.6 million,” he said.

Chow added that although PDC has been reportedly involved in several controversial land sale and construction projects yet to be completed, these matters were also taken into account in the decision-making process.

PDC management has taken follow-up actions to ensure these projects progress as planned, he said.

Chow said this in a written reply to Lim Guan Eng (DAP-Air Putih). The former chief minister sought clarification on the rationale behind PDC administration members receiving six-month bonuses, which were not given to other state government agencies.

Meanwhile, in a separate matter, the Chief Minister told the state assembly that the new Penang land tax rate will take effect from January 1, 2026, but state authorities have yet to finalise the proposed rates.

He said the Land and Mines Office and all district land offices are reviewing the land tax rates for all registered land titles. This involves 373,109 land titles statewide and is expected to continue until year-end.

“This administration has proposed several options for the new land tax rates to be considered by the State Executive Council (MMK), but MMK still requires further deliberation before approving the new rates,” he said.

He said this in a written reply to a question by Lee Boon Heng (PH-Kebun Bunga) on the state’s land tax rate review status and whether the new rates can be implemented next year.

Chow, also the State Finance, Economic Development, Land and Communications Committee chairman, said first-grade land will be included in the tax rate review, with 197,412 first-grade land titles in Penang, representing 52.35 per cent of the total land titles.

“Currently, first-grade land is taxed based on its use, but the existing rates are considered not reflective of the actual value, resulting in state revenue leakage,” he said. — BERNAMA