Political turbulence in Penang

PICTURES of a well-known "Tan Sri" from Penang being led from a police car in handcuffs and wearing the dreaded orange tunic sent shivers through the business community in the state.

He was not named by the police but Penang is not a big place and the local folk know him to be a prominent and well-connected property developer.

The "Tan Sri" was detained in May in connection with the ongoing investigation into the MBI Ponzi scheme that scammed thousands of people far and wide to the tune of some RM300mil.

The tremors are quite acute in Penang, which was ground zero for the Ponzi scheme and its Penang-born mastermind Tedy Teow, who is now detained in China.

The arrests have been the talk of the town amid speculation that the investigations, which have thus far involved mainly businessmen, may soon include political leaders.

According to local business circles, money from the racket was allegedly channelled into mega development schemes in the state and the buck may eventually stop somewhere high up.

It has put politicians in the state on edge and the situation has been likened to being in the eye of the storm where there is a surreal calm, yet there is danger all around because of the dynamic nature of storms.

The state government is facing turbulence after more than 17 years in power. Its support among the Chinese voters is still steady although Malay votes have flowed away with the green wave.

Difficult times lie ahead, exacerbated by the political infighting in Pakatan Harapan as well as the economic uncertainty brought about by the US tariffs.

Chief Minister Chow Kon Yeow left for overseas after an eventful state assembly that involved heated exchanges between him and his predecessor Lim Guan Eng.

The pair took the Chinese saying about two tigers on a mountain to a different level – there cannot be two tigers in the state assembly.

Ties between the sitting and former chief ministers are at freezing point. Chow does not appreciate how Lim is spoken about as the de facto opposition leader.

Chow is not the only one in the crosshairs of his predecessor. There are also complaints that Lim's team in Bagan where he is the MP, is making things difficult for Phee Syn Tze, an assemblyman for one of the state seats in Bagan.

Lim is not on good terms with her father Datuk Seri Phee Boon Poh and temple groups in Bagan are afraid to invite the senior Phee to their events. Those who do would have two main tables so that the two men do not have to sit at the same table.

Jeff Ooi, a former politician and now a columnist with Sin Chew Daily, said DAP leaders are worried the internal conflict will damage the party and a couple of DAP branches in Penang have called for the pair to cease tensions in the interest of the party.

But Ooi finds the dwindling state coffers far more serious than the politics of the "two tigers".

The state consolidated accounts went from RM1.15bil to RM50mil in the last five years, resulting in the state seeking a RM100mil advance from the federal Treasury. It is not a good situation for a state whose mantra is "Penang Leads".

Lim, who is Air Putih assemblyman, had demanded an explanation on the shrinking coffers at the state assembly sitting. It put Chow on the defensive and the Chief Minister pledged the reserves would be at least RM1bil by the end of his term.

"They increased water and assessment rates because of the cash flow problem but they approved new cars for the civil servants," said Ooi.

Another cause of concern for the state is how the IT industry is gravitating to states like Selangor and Johor. Will Penang be able to maintain its Silicon Island reputation against the competition?

The MBI probe will affect the local economy. For instance, a "Tan Sri" high-flier from Kedah who is in the police dragnet is heavily invested in two mega projects in Penang, namely, the proposed undersea tunnel and three major road projects.

Transport Minister Anthony Loke has made several visits to Penang to announce updates on Penang's LRT or Light Rail Transit project. There are few details about this ambitious and complex LRT Mutiara Line project but during his recent visit, Loke said physical work would begin in the next one or two months.

It has stirred interest among Penangites who hope it will not end up like the undersea tunnel project, which was supposed to have been completed in 2025.

The 11-year-old feasibility study for the undersea tunnel has never been revealed although land for the project has been reclaimed, exchanged hands and developed, one of the key players has jumped to his death while the former Chief Minister is fighting corruption charges related to the project.

DAP leaders' obsession with legacy projects is strange because they used to oppose mega projects when they were the opposition. Surely they are aware that what Penangites want most is a competent, efficient and clean government that can enable them to do business, work and live peacefully.

Another problem is the calibre of new state assemblymen who do not reflect Penang's reputation for producing brains and talent. Reporters now understand why DAP did not provide biodata of their candidates in the 2023 state election.

Many of the new faces have limited educational credentials, some cannot speak English and they do not come across as leaders who can take Penang to the next level. But if that is what Penang voters want, who are we to argue?

It explains how the state government could have come up with a half-baked policy to grant special housing discounts to Indian Muslims. There was such an uproar that it was quickly retracted.

According to a Penang-based investment consultant, voters are boxed in, without an alternative.

"They complain but I don't see the Chinese voting for PAS or Bersatu. But they should not stop asking questions or holding the politicians accountable," said the investment consultant.

Meanwhile there will be more sleepless nights for Penang politicians as the Ponzi scheme probe widens. Many are convinced that the authorities mean business after it was confirmed that the MBI issue was raised in the meeting between Prime Minister Datuk Seri Anwar Ibrahim and China President Xi Jinping.

"I'm wondering if DAP will be able to disengage itself from the Ponzi mess," said Ooi.