An illegal dumpsite at an industrial park in Bercham. Rumaizi says efforts to address the issue have contributed to rising cost for the city council. — RONNIE CHIN/The Star
Ipoh City Council (MBI) is grappling with increasing financial pressure due to rising operational costs, says mayor Datuk Rumaizi Baharin.
He revealed that the city council’s expenditures had surged over the years.
“In 2023, MBI spent approximately RM240mil, a 7% increase compared to RM225mil in the previous year,” he said in a statement.
“As of October this year, our spending has already reached RM193mil.”
He said these expenditures covered infrastructure management, waste collection, safety, landscaping and utilities. MBI oversees an area spanning 643sq km.
“We are not exempt from the financial challenges brought about by increased operational costs, yet we remain committed to fulfilling our responsibilities to the people,” said Rumaizi.
He noted significant rises in various expenses.
“Electricity bills, including street lighting, have increased by 29%, while raw material and operational costs have risen by at least RM2.25mil annually.
“Rubbish collection and waste management costs, handled by concessionaires, have jumped by 36%,” he said.
Rumaizi said efforts to address illegal dumpsites had also contributed to rising costs.
“These include cleaning up over 2,000 illegal dumpsite hotspots, acquiring new rubbish trucks, setting up collection points, offering free bulk and garden waste collection services and installing anti-littering signage.”
MBI, he said, had been operating on deficit budgets since 2021 to balance economic demands with public welfare.
“We anticipate the deficit to continue through 2025, amounting to a total of about RM50mil over five years.
“Since 2021, we have allocated more funds for management and development than our expected revenues, relying on our reserves to cover the additional costs,” he disclosed.
Rumaizi stressed the need for a stable financial foundation to support Ipoh city’s growing population.
“Our population now stands at approximately 857,000, with an annual growth rate of 1.77%. By 2035, it is projected to exceed one million,” he said.
He added that current revenue streams such as assessment taxes, licensing fees, rental income and permits were no longer sufficient to support Ipoh’s increasing development needs. — By IVAN LOH
