GEORGE TOWN: Penang Chief Minister Chow Kon Yeow has defended the decision to grant up to six months' bonus to Penang Development Corporation (PDC) staff.
He said the PDC board approved a five-month performance incentive based on the balanced scorecard, which recorded exceptional performance in 2024.
He said the performance surpassed the set target of 85%, and only 25% 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 RM527.1mil last year compared to RM276.6mil in 2023, representing the highest increase at 91%.
"Overall budget performance was excellent, with 104% revenue realisation and 96% expenditure, while early loan prepayment interest savings were estimated at RM8.6mil," he said.
Chow added that although PDC had been linked to several controversial land sale and construction projects yet to be completed, these matters were also taken into account.
He said PDC management had taken follow-up action to ensure these projects progress as planned.
Chow said this in a written reply to Lim Guan Eng (DAP-Air Putih). The former chief minister sought clarification on the rationale behind the high bonuses, which were not given by other state government agencies.
In a separate matter, Yong told the state assembly that the new Penang land tax rate would take effect from Jan 1, 2026, but state authorities have yet to finalise the 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 state-wide 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), which 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 in 2026.
Chow, who is also state finance, economic development, land and communications committee chairman, said first-grade land would be included in the tax rate review, with 197,412 first-grade land titles in Penang, representing 52.35% of 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
