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Penang govt urged to control house prices

A BARISAN Nasional assemblyman yesterday called on the state government to devise a way of controlling the prices of houses in Penang.

Datuk Shah Headan Ayoob Hussain Shah (BN-Teluk Bahang) said while the state’s economy was doing well, there were many grouses among Penangites who found it hard to own homes.

He said that the private sector worker’s average salary was only RM2,000 a month, and cited an example of how the price of a double-storey terrace house had risen from RM450,000 in 2007 to RM1.2 million this year.

“Even though the state has no power to compel employers in Penang to raise the workers’ salaries, it has the power to control the price of housing. The price of houses is going up, and Penangites cannot afford to buy homes here.

“The middle-income group, especially, is hard-pressed in this situation. Many professionals, regardless of race, are finding it hard to buy houses,” he said in his debate on budget at the state assembly here yesterday.

Shah also questioned the frequency of trade missions led by Chief Minister Lim Guan Eng to places, like Hong Kong and Taiwan, with an unconvincing inflow of Foreign Direct Investment (FDI).

“Where is the state’s priority? Which country is being targetted for its FDIs in Penang?”

Shah said there were talks that multinational corporations, like Fairchild Semiconductor, were downsizing their operations, and a division in Jabil Circuit had sold its business interests and was in the process of downsizing, too.

Shah also criticised the state government for failing to address the rising number of homeless persons in the state.

He said the number of vagrants roaming the streets and seeking shelter or sleeping under the trees had increased over the past few years.

Also debated yesterday was the proposed plan to build an airport in Kulim, Kedah.

Wong Hon Wai (DAP-Air Itam), cited a report in a financial daily that claimed the Kulim airport would cost up to RM3.9 billion, while an expansion of the Penang International Airport would only cost RM600 million.

Datuk Jahara Hamid (BN-Teluk Air Tawar), however, said that Kedah could not be prevented from planning its own development.

“The Federal Government has already given an allocation for the airport upgrading in Penang. You cannot stop Kedah from planning its own growth.

“This is where the prosper thy neighbour concept comes into play. If Kedah prospers, we will get the spillover.”

Prof P. Ramasamy (DAP-Prai), in rebuttal, said that Penang was clearly marginalised, with only RM250 million allocated to expand its airport.

In response, Jahara said the existence of another airport in Kedah would spell healthy competition for Penang.

Jahara, who is also state opposition leader, then pointed out that the Chief Minister’s Office’s operating expenditure was too high at RM240,000 a month.

She said the department hired 62 people, compared to 15 people by the previous BN administration.

“The chief minister must justify this since he had always bragged about being efficient and prudent in his spending.”

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