The proposal for a Penang International Convention Centre is already moving, but I dare say a large majority of Penangites are unaware of it.
This artist impression of the convention centre doesn’t show how close it will be to the existing Penang International Sports Arena (Pisa).
In fact, the public have been given until 8 January 2010 to submit their opinions and views – and that’s it for the consultation.
The Bayan Baru Residents Association has already registered its objection in a letter to the press. You can submit your views to the Penang Municipal Council or you can email your views to riduan@mppp.gov.my before the deadline expires.
Personally, I am against the project, which is expected to cost RM50 million (and that’s just an estimate). The money is expected to come out of the precious funds of the Council, which has budgeted a deficit of RM40 million in 2010 on the back of revenue of RM230 million (two thirds of which is raised from assessments/taxes). The Council has allocated RM30 million for the convention centre in 2010 and a further RM20 million is expected to be incurred in 2011.
Why Penang doesn’t need a convention centre like this built with public funds:
- Has there been a traffic impact study for the project?
- Parking could be nightmarish as there are inadequate parking lots. Just look what happens during the computer fair, when people park all over the place.
- The new convention centre is to be built right smack in front of Pisa. During construction, Pisa’s operations will be affected. And after construction, Pisa’s own business and utilisation will probably take a hit.
- The new convention centre is unlikely to be heavily utilised. What is the cost-benefit of the project? Where is the financial rationale?
- Why not just upgrade Pisa and be done with it.
Spending RM50 million on a convention centre would be a terrible waste of the Council’s limited funds, contributed by rate-payers. All this while, the Council has been scrimping on other essential projects. The money saved on the convention centre project could be better used for the following:
- Upgrading existing public markets and building new Council markets in places like Batu Maung and Teluk Kumbar.
- Improving pavements and disabled access around Penang.
- Upgrading and repairing old drains that are in poor condition.
- Upgrading and installing modern public toilets on the island, especially in George Town. The state of a city’s public toilets tells you a lot about the place.
- Beefing up Council enforcement units to improve cleanliness and reduce congestion. This heightened visibility would have the indirect spin-off of deterring street crime.
- Upgrading the Council’s entire computer system, which I am told is “archaic”.
- Initiating its own heritage conservation projects, now that the federal government has denied the Penang local government its rightful allocation of funds for heritage conservation (and instead channelled it via Khazanah Penang).
And that’s just a sample of things it could do with that kind of money. So apart from the actual money spent, we have to think of the above ‘opportunity costs’ – the things we could have done with the money if not for this project.
I will be e-mailing my views above to the Council (Update: Done!). You might want to do likewise, whether you or not you are in favour of the project. (I don’t think the Council has received much feedback from the public so far.)
Meanwhile, blog reader S H Tan has come up with an online petition on the convention centre here.
Anil:
I have written a complaint through the Star letters column on Nov 26 but it was not posted. Below is the letter.
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It appears that the Penang State Government is adamant in going ahead to build the multi-million ringgit “international” convention centre at the Penang International Sports Arena (PISA) venue (“Open tender for RM50 mil convention centre”, StarMetro North, 26 Nov 2009). There are several pertinent questions which I hope the State Government will come forward to clarify.
Is the RM50 million project funding coming from the MPPP coffers which was reported it will be running at a deficit of RM40 million in 2010? The Penang International Sports Arena built in 2000 has been a dismal failure in organising and hosting international sports events. Apart from its swimming pool (which was not even built to international standards), there are practically no sporting events held there. The only “success” it can boasts of is its hosting of several Matta Fairs, PC Fairs and Food Fairs several times a year. Is this the justification that the State Government sees as a need for an “international” convention centre in Penang?
The Penang International Sports Arena is now a misnomer and will it be renamed to be the Penang International Convention Centre since no major sporting event has been held there for the last few years?
The Pesta Pulau Pinang expo site in Sungai Nibong was built in the late 60′s and has now outlived its purpose. The site is now shared with tour buses as a transport hub. The expo is still being touted as one of the major events in the annual Pesta Pulau Pinang calender after more than 30 years. It is actually nothing more than a big scale pasar malam. The present Pesta expo site is currently used only about 30 days in a year during December for the Peasta Pulau Pinang. Has the State Government considered upgrading and rebranding the present Pesta expo site rather than building another convention centre less than 5 km away.
The PISA is in a shameful state of disrepair and poor maintenance. The internal and external looks shabby and worn, the ground is unkempt and dirty, the road in front of the main foyer is potholed, the seminar rooms do not have air conditioning, the stadium seats are broken and tiles at the bottom of the swimming pool are cracked and broken. There is a car wash centre, several furniture shops, a food catering company, a private training centre and a car accessory shop occupying this International Sports Arena premises. Why is the State Government allowing the PISA to degrade to this stage by not providing funds to upgrade it but rather spend millions to build another spanking new convention centre beside it?
I hope the MPPP and the State Government will come out to clarify these points in the name of competency, accountability and transparency.
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And below is my most recent feedback to the MPPP En. Riduan.
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I refer the the Star North report on 19 Dec 2009 (“Opinion on PICC sought”) in which CM Lim Guan Eng asked for feedback and inputs on the PICC. Below are several questions which I hope you will answer:
- who is funding the RM50mil construction of the PICC?
- If the State is funding the construction of the PICC, what is the financial justification for it on the back of a reported RM40mil projected State budget deficit in 2010? I would like to remind the present State Govt. that the MPSP (then under the BN) was near bankrupt in 2008 mainly due to the RM80mil funding of the construction of its HQ in Bandar Perda. The DAP was very vocal and against it at that time.
- why was East Design Architect retained as the consultant?
- Will an open tender be called for the construction of the PICC?
- how is the PISA and PICC going to cater for the larger crowd of tens of thousands of visitors during the major fairs like PC Fair and MATTA Fair with only 1800 available parking lots? Assuming an average car occupancy of 3 persons per car, the 1800 parking lots can only cater for 5400 visitors at any one time. There will be a spill-over of 2x to 3x in parking capacity.
- with a new spanking PICC built next to the PISA, will the PISA be upgraded and maintained to bring it to international standard again. If yes, how much is the budgeted repair and maintenance cost? The present PISA is in a terrible state of disrepair and non-maintenance.
- what are the traffic dispersal plans for the area with the increased traffic volume from the new PICC and residential/commercial development around the area?
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I too fail to see the necessity of a convention centre for Penang. What kind of mammoth conventions the MPPP hopes to attract with this centre?
We already have the Equatorial Hotel just a stone throw away with excellent convention facilities. Not forgetting too, the grossly under utilised PISA which can double up as an exhibition centre.
The new Penang state government, through transparency and better accountability managed to save millions last year. I hope the appointed MPPP councilors will not simply frivol away the unearned money which came mainly from our property taxes.
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YES I agree, renovate, upgrade and expand PISA and be done with it, otherwise PISA will be another white elephant and die a natural death when all important function will surely move over to the new Penang convention centre. PISA needs a multi-storey public carpark.
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Catch-22 Situation. If you don’t have InternationalConvention Centers, no one will come to hold Conventions. No International onventions – no exposure. No exposure – no new opportunities. No opportunities – less jobs….
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You have my vote on this, sheer waste of funds when there are a hundred other priorities. This is why we must have an elected city council so that they can object to such developments
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Wira:
The decision to build the PICC was more a 9-1 decision by one person. The councillors have little say in it. There is this Mahathirism mentality of build-build-build in the name of development. Sadly we have not weaned out of our no maintenance culture. It’s becoming of a same-old, same-old thing.
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please la just used that RM50m to upgrade the transportation system and uplift the poverty from the state
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Hi Anil,
I agree with you that money is better spent to repair drains, upgrade walkways and toilets, improve wet markets and other public amenities. And most of all upgrade public transportation – I don’t mean just buses but also bus-stops, bus-stations and walkways. I can’t see the justification for the state/council to undertake a PICC. But if a private investor wants to buy a piece of land and build a PICC with his own funds, then by all means go ahead.
Just don’t use taxpayers’ money.
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Which government in the world not using taxpayers’ money?
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@SH Tan
Did you mean LGE?
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Same s… different CM…..
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Dear SH Tan.
Can you please name the person?
Frankly, I wish they would use the money to repair council roads and public amenities. I don’t blame the local government for the bad condition of the coastal road which is under federal jurisdiction. However, the state must pay attention to municipal roads and drains in housing estates, many of which have gradually deteriorated since the PR government took power.
I don’t want money for maintenance being used to spend on some grandiose project.
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I’m a Penangnite and I support this move. Penang needs all this infrastructure to boost its economic activities. The economic impact of building toilets and other amenities are not sufficent to boost the Penang economy. The economic impact of building the convention center will boost the tourism and hotel industry.It will create more jobs. It will also allows the international businessmen to visit Penang. This will facilitate further FDI into Penang. The ROI for 50 million investment is definitely worth it. I’m not saying Penang state should forgo the the suggestions you have made. It is their responsibility to ensure these amenities is in tip top condition. Boosting the economic activities in Penang must be the top agenda for the Penang state government.
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You can have very decent conferences in hotels. Exhibitions are another matter altogether. You will require specialized facilities. The question the Penang govt must ask is who do they intend to attract? Which industry? Are these events sustainable, repeatable? Do we have sufficient infrastructure to support large events? Does the government have a marketing program lined up to fill the halls? This is not the era where ‘they will come if you build it’, and answer a whole lot of other very expensive if-you-get-it-wrong questions and when that happens we will have to figure out what to do with another white elephant. i am 100% behind the idea to outsource the entire project to the private sector. Let them make sense of the business viability. Lease the land to them. Separate governance and business
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LGE is desperate to show off. He think he can. The truth is he know nothing. He claimed that he save money for Penang but want to waste our money on a project that he himself is convinced will not bring financial return to the state government. There are better convention centers else where what make LGE think that with this new convention center more exhibition will be held in Penang? Dubai has the best but on the edge of bankruptcy. The world is still holding its breath in anticipation of the upcoming financial crisis in the backdrop of Dubai financial woes. Why should we so hurry to commit ourselves on a project we can’t afford when we can’t foresee even the nearest future of the world financial health?
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Your comment is more personal than factual. Whatever LGE has done or going to do, he will take the peoples views and deliberate on the matter. No need to claim that he is a show off or otherwise. Penang certainly can afford this project of 50million. It is just the cost of one missing jet engines! The gist of the article is whether it is justifiable to have another convention centre so close to Pisa and whether upgrading Pisa is a better alternative.
Dubai, will never go bankrupt! Check your comments! The greatest fear of all Malaysians, is the welcoming of another well blessed joining the league of a failed state, similary to Zimbabwe!
Whether LGE is well versed or otherwise, he is well advised with a team of very knowledgeable people, so Penangnites are fortunate in that sense. There are not blatant corruption, that is of utmost importance. If the State were to be administered by UMNO/BN component parties, then, Penang would have suffered the shame of sliding further down the social rankings in Malaysia itself
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You want a factual one, you got it. This is what you ask for.
PICC: Monument of Lim Guan Eng — Ong Eu Soon
http://www.themalaysianinsider.com/index.php/opinion/breaking-views/48334-picc-monument-of-lim-guan-eng–ong-eu-soon
Happy reading!
You can fight me point by point in the Malaysia insider arena.
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I will not fight you la bro, we are ka kee lang la, both from Ko Ean la, Let us enjoy our crabs porridge at Chang Kee or Khee Xiang ok?
Just concentrate on your engineering job bro, it needs better attention. All the best to you. Sad to see so many negative comments for your article la, bro. Did you write that article, Ah Soon?
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Eu Soon, you see, so many people condemning your English in Malaysian Insider. Should have got it edited before posting the article. Not nice la as we are English educated during those days. Malu a bit la for our alma mater.
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Sorry! I am mandarin educated. I will not feel sorry for my broken english the way you feel sorry for LGE.
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I think LGE is not elected by few guys. So, give him a free hand please. Like the author said, submit your letter of opposing.
LGE is well respected all over Malaysia. If you can run down a leader for the sack of just a proposal (not yet a mistake). I think you can offer yourself to stand in to fight head to head with LGE in the next GE.
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Agree, upgrading existing convention facilities like in Pesta would cost less, after all, Pesta is under utilised from January to October. The economy is bad, is this where all the money the state government said it saved from reducing administration expenditure going to?
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When come to objecting such a proposal, people tend to weight along their own interests. In another words, if the convention centre do not benefit me, just oppose, if the convention benefit me, just support.
Penang has no land for agriculture, it is mainly tourist attraction and relying on business and trading. In my opinion, if the convention is meant to boost such area, we should not against it. This convention can be used to hold huge crowds for major conventions and not a hotel facilities. It is world class standard. I do not see it creates rivalry to hotel or other existing premises.
RM50 millions is not a waste in construction if the tender exercise is carried to get a good price. Creating a hub for business opportunity. This RM50 millions will go to every pockets of Penangists, from contractor to workers and to food operators.
Which city is not congested in this world? KL is better car parking than Penang? Even UEP Subang Jaya in Taipan cant find a car parking during office hour. I never blame such thing because I have a right not to go there.
I hope government should implement more projects to bring more business opportunities to all.
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Has there…could be…most probably….
Come on, you can do better than just being a fear monger.
And great suggestions on the alternatives but missing the cost breakdowns to make them more convincing. Ideas should be backed by data in order to sell. Just my 2cents.
ps…..Happy new year.
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I cant do it myself as the exercise on cost and benefit studies required great expertise. I hope some one could ask MPPP to come out with cost and benefit studies to ensure the project the feasible to carry out in the near future.
In a development for public amenities, usually there is a cost and benefit studies to ensure the project is viable. The report is usually open to public for viewing.
Thanks Sunny.
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I was referring to Anil’s article
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To all commenters here:
The MPPP has said that they have only received 5 formal feedback/objections up till last week. If all of you feel so strongly about this project, please write in to MPPP with your formal feedback and objections. Pls be constructive and not just mere bashing.
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I support SH Tan, please address to MPPP as soon as possible. It is worthless to argue here. The author also suggest to oppose at your might.
Again, MPPP is so fair to let opposition from the public before implementation.
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The precious RM50m can be better used!
If it is the state government’s money there are more pressing matters as raised by others.
If it is a private venture, the state must ensure if it is built on government land, a fair deal must be reached for the use/transfer of that land.
I am quite disappointed the development was not that well publicised to ensure better input from the people.
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So, are you expecting LGE to give free handouts for baiting vote campaign?
This PICC was announced in the papers except it was not carried by RTM. Don’t blame LGE if you cannot watch his face in RTM or TV3.
What is your better inputs? I see none from you.
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I was told that the previous government had extended the land area lease to the operator of Auto City in Juru to build a three or four star hotel including a large convention/exhibition centre.
This is suppose to be a private initiative that was why the extra land extention was given by the state or PDC to Auto City.
Can someone check on this?
I also understand, Auto City gave a very convincing proposal or is it after getting the land they now have got others ideas.
The are pros and cons about the the proposed convention centre but the important point is a indepth study must be done before building it.
The present state government as I see it is getting alot wrong advisors in many areas especially in the tourism sector. These advisors could be the new cronies who would talk as if they are experts in every fields but usually kosong.
I have met some of them, like one of them a so call travel agent trying to give advice on Dragon Boat Race where he has never been involved before.
May he has money to show off to the politicians and make people believed in him.
There are some many experience people that has involved in the Dragon boat starting from been a rower to a coach of winning teams are not consulted.
There many experience people in its own field and the state government needs to invite these people to come in and share their experinces.
For example, a tailor want to show off that he can to teach state government to cut hair, just because he uses a sissors when in actual fact the barber is standing by to give his expertise.
For the convention centre, there are a few exhibition/event organisers in Penang whom I know that can give some ideas, there is also a national association for exhition/event organisers based in KL that can help as well.
As a Penangite based in KL, I’m associated with this association and as well as running a PR/event/exhibition organising company.
Let me, give you all an example, the annually international furniture fair held in KL bring in around 8,000 foreign furniture buyers and some of them bring their spouse along, that will give us a figures around 10,000 foreign visitors. They usually stays for at least four nights.
Any hoteliers reading this? They must salivating for such business?
What about the local exhibitors and visitors? It is estimated to be around 4,000.
During the first week of March every year, try to get a room in KL and you may ends up kicking yourself for coming to KL during this time.
KLCC convention Centre have booking to 2014 for various events and they are already seeing profits for their investment.
I will be involved in a convention for accountants to be held in KLCC in November 2010 and there will around 9,000 delegates from around the world.Don’t Penang want these type of events?
Tourism Malaysia and MATRADE are targeting to bring in more Meeting, Incentive, Conference, Exhibition (MICE) events because these events attendees will bring in high yeild (monetary returns) as they are spending companies money to attend such events.
If proper planning are done and with backup plans, this PICC project will bring some life back to Penang Tourism.
The previous state was sitting on the laurels established by Tun Dr Lim Chong Eu that is why the Pesta ground in Sungai Nibong has remained still as it is till today after Tun Dr Lim moved it from McCullum Street Ghuat.
There are so many wrongs done in Penang all these years after Tun Dr Lim and we should be looking forward to correct the situations so that the future Penangites will have a better Penang.
If you people still remember the international powerboat race that was held by the Penang Bridge, it would be still held there till today but the previous state government did not support the organisers, that was why the organisers stop the event and mind you the organisers are all 100% Penangites.
I am happy to see Bulldog Kuan and his gang are bring back the Street Racing which was the third country in world to have such racing after Macau and Monaco.
It was a pride for Penang when we have the single seat race cars going round the circuit before we have even heard of Sepang.
Penang used to have many first in fantastic events but most of them were killed off by the people who took over from Tun Dr. Lim.
I would recommend that the present state government seek the help from experience people to work on the PICC and come up with a solid plan on what is needed in market in term of location, design, size, requirements for immediate and future needs.
The state government need to start a working group to make the feasiblity study for PICC which should have been build some 10 years ago but it is still not too late with the new vision of the state authority.
Don’t build something for shiok sendiri which will ends up as a white monument/elephant.
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Anthony just bring back a lot of nostalgia of our highly respected Tun Dr. Lim.
Things has not been quite right in Penang after Dr. Lim. But who is the culprit of bringing down Dr. Lim and left Penang in a mess???
Bingo, he is precisely the CM’s father…..
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If 50 million peoject by PR government is called huge project, then how your call 20 billion snail-like speed railway project by BN government?
Penang is lacking a proper convention center since 80s and urgently need a decent convention center to be a commercial center.
Where you are going to organize any international-class MICE if this “tiny” project is scrapped? In the Padang or in the Anil’s backyard?
Go see how big and advanced convention centers in Singapore or Hong Kong before you are barking a wrong tree.
Many questions raised by Anil and other opponents should be answered by previous government before the stadium was erected.
Except during the peak rushing hours, I do not see traffic around the stadium is a major issue.
You are expecting LGE to use RM50 as another subsidy to relieve your short-term pains like food, water, etc.? Let forget such subsidy mindset if Penang wants to be a advanced state by 2020.
I think more urgent issue we shall highlight is open tender for the project and not ridiculously to argue RM 50 million convention is another huge white elephant (or white mouse project!)
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RM50 million in Council funds is not “subsidy” – it is money collected from the public via assessment rates. So the public must have a say in how it is spent.
That is why it is important to have local council elections – so that councillors are accountable to the public on the spending of Council (the people’s) funds.
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I agree local council election is a promise not fulfill by DAP and PR. They have better be prepared some voters will abandon them in the next GE. I’ll spoil my vote instead of giving PR another chance. (of course BN will never get my vote for sure.)
No one dispute that all money used by BN or PR government are our money. I have never said the money is a subsidy. Building a convention center is much better than giving out free subsidy for water, etc. with the 50 million.
I see so-called objection for PICC from certain quarters is mainly for political reason, not from the feasibility aspect. Actually, this PICC project comes too late, it should be built 20 years ago by KTK.
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You missed the point. Please calculate that RM50 millions is of how many percentage of the state total income before comparing 20 billions of Federal government total income.
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Even the percentage is 50% does not matter as long as ROI study can convince the project is feasible.
Do you know how many years for BN snail-like electric train to breakeven? The answer is NEVER.
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The fact is RM20 billion again gone down the drain, squandered and misappropriated along the way. Why invest in a rail system that can run safely at 80km/hr when the current system can do just as well, if not better? It is another classic example of bad governance by UMNO/MCA, MIC and Gerakan and co.
With regards to the Federal income, well, it should be the Government’s lack of income, should I say? If infact there is real income and proper budgetting and proper accounting, something we should not expect from the UMNO led BN Government, known for their inability to be accountable, why is the Government so badly in debt? To the tune of 336 billion? So again, it is not a matter of 50 million ringgit of the Rakyat’s monies that is being spent but more so, correctly spent!
The PICC if correctly thought up and executed with clear objectives of its use to further enhance the State of Penang, is surely worth a thought, as it will bring much needed investments and business opportunities to Malaysians in general and Penangnites in particular. I remembered there were some comments that Malaysia is a leader in computer chips technology owned by MNCs, perhaps, PICC could be used by this MNCs to showcase Malaysia’s achievements to the world in Penang.
Whatever the conclusion of the State Government, we believe they are done in the best interests of the Rakyat, but the question of traffic congestion etc must be seriously look into, studied, and attended to, before building. Such feasibility studies pertaining to every angle has got to be studied before implementation. The State Government cannot afford to embark on fund wasting projects, like what the Federal Government had done, and the 20 billion rail project is a classic example of abuse by those in power, because they built for the sake of building, to ensure that monies are officially spent, and to ensure that the project enriches a few connected individuals. Just compare spendings by China to link up China with a comprehensive rail system which is absolutely vital for any economy, today they proudly claim to have the second longest rail roads in the world, and one of the best and fastest, that had brought travelling time significantly reduced and had done much to spur the economy during difficult times. Part of China’s stimulus package to support its economy, Malaysia, also had two stimulus package to steer its economy out of recession, but what have they actually done to spur the economy? While Singapore has moved out of recession, Malaysia is still sadly mired in it. You see, the difference between good management and irresponsible, corrupt and dishonest management? Stimulus packages are vital to assist the Rakyat, but instead we are rewarded with missing jet engines, that had gained international attention for the country, and the latest news is that (of) Teoh Beng Hock… It does make an awful lot of difference if the Government can change to be clean, accountable and transparent, or be changed by the Rakyat. Happy New Year folks!
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Anil, Ajax editor is very odd with texts lean to the right.
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Yeah, I noticed that. Not quite sure if there is a better alternative editor around.
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You may modify the code to make it lean to the left.
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Penang certainly deserves to have a conventional centre of decent magnitude to bring in the experts in all sectors of industry to provide the boost for the economic activity when such meetings, conferences and seminars takes place.
Penang would not want to be in the backwaters of economic development, I am sure. The world is developing at a fast pace and if you are not prepared, you will be left behind.
Every city state has their own convention centre. KL and Selangor indeed has much more. The KL Convention centre, the Putrajaya Convention Centre, Sime Darby convention centre, Shah Alam Convention centre in Selangor and the Convention centre in UMNO building are some of the examples.
Surely, those who plan for convention centres have the vision to build parks , traffic dispersal and car parking facilities as well.The proposed PenangInternational Convention Centre will be no different.
I believe there are some people who will oppose just for opposing sake because they are from different camps.Just let Lim Guan Eng do as what he thinks is good for Penang and if it does not work well, then comment.
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This is a Council project using Council money, so it should be the Council that should decide.
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Anil
Council is under the directive of the state government. Decision is to be made by the government and Council to implement it through the decision of the state government whether its Council money or not.
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Spot on SS!
Backseat drivers always have an opinion but never want to actually drive.
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Dear Anil,
I am against the location. The PISA is too tight for a PICC (‘international’). I believe originally PISA was built for recreation and sport purpose, but now even with car accessories shop and furniture shops occupied car parks lock, car wash, catering outlets and others. It can be very ‘rojak’ eventually. The PISA is underutilised since it was completed.
Penang Government (PG) should look further, there is no place for any extension even if this proposal were success…
Professional Associations like PAM, IEM, REHDA and NGOs should submit their professional advices to PG/ MPPP. A public interest-related project should have design competition and open tender to ensure that the public interest is well protected and with best return.
Anyway, is the tender for PICC being called recently?
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