MPSP turns around after 8 years of deficits


The Seberang Perai Municipal Council (MPSP) has turned around after eight years of deficits. It posted a surplus of RM14.6 million in 2009, after a marginal surplus in 2008 and deficits from 2000 to 2007 under BN rule.

Its actual income rose by 7.6 per cent to RM157.4 million in 2009 while its expenditure inched down by 0.3 per cent to RM142.8 million, giving a surplus of RM14.6 million (against a projected deficit of RM15.5 million). With this surplus, the Council’s reserves rose from RM29.1 million to RM43.7 million.

MPSP Surplus/(Deficit)
(RM million)

2000 – (5.1)
2001 – (31.2)
2002 – (36.7)
2003 – (39.0)
2004 – (48.9)
2005 – (57.1)
2006 – (5.4)
2007 – (5.1)
2008 – 3.0
2009 – 14.6

Well done to the new administration. It is not difficult to understand why the local government had been saddled with deficits and dwindling reserves previously. It embarked on a costly series of building and so-called ‘beautification’ projects: the building complex at the Butterworth padang, the forlorn fountain and rock garden next to the padang, the lavish MPSP office in Bandar Perda, the Batu Kawan Stadium (now a white elephant), the large MPSP court complex, the ornate lamp-posts (with hanging flower pots) in Butterworth, expensive floral decorations, the re-surfacing of pavements…

Moreover, the MPSP is believed to have spent a fortune in excessive rubbish disposal costs by external contractors.

And all the while, mainland Penang residents have had to put up with lousy drains with stagnant water, frequent flooding in some areas, dirty and polluted beaches and rivers, the loss of sporting and recreational spaces (access to the whole beach-front in Butterworth has been cut off by the Butterworth Outer Ring Road and the North Butterworth Container Terminal), and unresolved urban settlers’ issues. The quality of life has dropped; and all these issues need to be looked at.

This report from theSun:

Council records RM14.57mil in surplus
by Himanshu Bhatt

SEBERANG PERAI (April 11, 2010): The Seberang Perai Municipal Council (MPSP) has managed to chalk up a surplus of about RM14.57 million in 2009, following a series of deficits it had incurred under the Barisan Nasional government from 2000 to 2007.

Council president Mokhtar Mohd Jait today revealed a final accounting statement that showed the MPSP’s reserves soaring by more than 50%, from RM29.07 million in 2008 to RM43.67 million in 2009.

The RM14.57 million surplus compared well with the eight consecutive years of losses the council had experienced.

According to the accounting record, the council incurred losses worth RM5.06 million in 2000, and that rose steadily to RM39.04 million in 2003, peaking at RM57.08 million in 2005.

Chief Minister Lim Guan Eng said the council’s recovery was due to resourcefulness in collecting revenue and saving on costs.

“This has been a painful process, but now the council’s financial condition has been treated and it is well under recovery,” he said after a meeting of MPSP heads at its headquarters today.

In June last year the Pakatan Rakyat state government, which had taken power in March 2008, ordered MPSP to appoint an independent audit committee to look into losses worth RM230 million incurred from 2000 to 2007.

The team was to report its findings and recommendations to State Financial Officer Farizan Darus, who was the council’s previous president, for follow-up action.

Asked on the audit team’s findings, Lim said Local Government Committee chairman Chow Kon Yeow would announce the matter later.

He said the MPSP would now go ahead with necessary expenditures worth almost RM5 million to increase its facilities, including special vehicles for cleaning and maintenance.

Lim also announced that applications for renovations to houses in Seberang Perai, if done according to the MPSP’s standard plan, will in the future take only 24 hours to be approved.

Applications for special renovations that have details not within the standard plan would take five weeks to approve, he said.

He pointed out that under the previous administration, applicants had to wait four to five months for approval.

The new time frame would be implemented once approved by the MPSP full-council meeting at the end of this month, he said. — theSun

Updated: 07:19PM Sun, 11 Apr 2010

That said, I hope the MPSP will carefully scrutinise all applications for renovations to ensure that setback and other requirements are strictly observed. It also has to be vigilant to ensure that contractors do not get too cosy with Council staff.

Another area that needs to be monitored is the conversion of residential houses to commercial units.

The other thing I would like to see is for both the MPPP and the MPSP to put their latest financial statements on their websites in the interests of transparency and accountability. (The MPPP has a breakdown of its income for 2007 and 2008 but not the financial statements.)

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Well done Mr. Chief Minister! Hulu Selangor residents, can u see what PR can do?


There are leaders who build with available money and resources.
There are also those who build with borrowed money (in terms of deficit spending burdening our children and their children).
We must build according to our resources and income.

As long as the project is honestly constituted, we leave that to the better judgment of those we elected to represent us.
This includes the PICC.

A corruptly constituted, failed project promises to screw taxpayers twice.


Yes, i, too, agree with Wira… with LGE being the CFO @ Federal, there is hope that the poverty level can be eradicated. I have no science or math’s degree, not like some of the readers here who can talk and analyse data and figures so very well. But one thing i can see is that our Chief Minister, Lim Guan Eng, he flies economy class (even Ong Tee Keat on private jet), wearing the same old chinese new year’s shirt for years 2008,2009 and 2010. Mana pergi cari such a simple CM on earth? Since the palace was infected…… Read more »


… our Chief Minister, Lim Guan Eng, he flies economy class …

… please compare our Betty Chew with other BN’s wives …

… Lim Guan Eng and his wife are setting good examples …

Yo, Fanboy Kee !

Why stop there ?

Why is there no mention of their children as well ?

Since you worship Lim Guan Eng and Betty Chew so much, why not worship their children as well ?

Make it a one-shot deal ma …

Oh yes, the sky is not falling yet, Mr. Kee ?


Totally agree with Wira. But if it is Ah Kong’s money, who really cares?
Fiscal discipline is not a priority when leaders don’t set good examples.
And worst, rent seekers profits in the chain of authority who gave projects.
So, should Penangites continue to pay taxes to the Feds?


I cannot understand how some people think.

Regardless whether the local council is a cost or P/L centre, fiscal discipline is paramount.

One must not spend more than one’s income.


I cannot understand how some people think.

Regardless whether the local council is a cost or P/L centre, fiscal discipline is paramount.

One must not spend more than one’s income.

Which means you never study economy.

Keynesian Economics ( ) allows, nay, encourages Deficit Spending ( ).

The practice is everywhere.

From the use of credit cards to government’s multi-billion deficit spending

Oh, btw, do you use credit cards? If so, you are a practitioner of deficit spending.

Note: This message is not intended as a defense for the MPSP. I’m merely stating a fact.


Can you imagine what may happen if they put Lim GE as the finance minister in the next PR federal cabinet?

Every orang tua will be appreciated with a yearly RM1000 gift and our finances will be solid like that of little red dot.

Perhaps we may again dream of the day when the ringgit and the sing dollar can be on par again.


Ya, one can indeed imagine a lot more white elephents like PICC if the Cheap Minister becomes the Finance Minister.

He’s now into wasting tens of millions, and if he “graduates” to the Fed level, he (could end up) wasting tens of billions. Heck, he could even outdo Anwar and Mahatir, looking at the rapid “progress” he made within 2 years in Penang….


Can you imagine what may happen if they put Lim GE as the finance minister in the next PR federal cabinet?


Malaysia will be choked to death with all kinds of white elephants everywhere.

Even worse than the white elephants that BN has erected.

Plus, Malaysians will be bombarded with idiotic nonsense from LGE a-l-l—–d-a-y—–l-o-n-g !

If PR takes over the helm of the Fed, I myself will go beg them for mercy.

Please put tin kosong like LGE in charge of something that is non-disruptive, like the toilet brigade or something.


Anil I would like to suggest to you to hold on to the champagne! This is not a time for rejoice but rather a time to be wary and worry. I know Anil’s background as an accountant and I respect that. But I am slightly disappointed that someone of your stature and background would be easily convinced on the basis on such scant and flimsy data to sing the praises of the Kapitan. Also the analysis of the state of MPSP’s financial situation is completely wrong. One can forgive Himanshu as he’s a known cheerleader of the Kapitan aka Chairman… Read more »


Anil I think it is important that we Penangites should continue to press LGE to walk his talk of CAT and not merely talk his talk. I have yet to see any fiscal prudence or financial disciple that LGE has brought into MPSP and MPPP. He could have easily done it since he too has a financial background. I am sure you know the various accounting and disclosure standards that public organisations can use to enhance transparency and accountability. He should press LGE to adopt these practices. Instead all we see is “improved” bottomline, which anyone with some financial/business background… Read more »


Dr Teng: It was Anwar’s idea Friday, 28 November 2008 23:53 Himanshu Bhatt (The Sun) Gerakan today shot back at the Pakatan Rakyat state government’s criticism of the previous state government’s move to build the Seberang Perai Municipal Council (MPSP) headquarters in Bandar Perda at a cost of RM84.3 million. Penang Gerakan chairman Datuk Dr Teng Hock Nan said it was Datuk Seri Anwar Ibrahim who had advised that the headquarters be sited at Bandar Perda when he was deputy prime minister. Anwar, currently parliamentary opposition leader and de facto head of PKR, was also the Umno deputy president and… Read more »


MPSP financial woes Tuesday, November 18, 2008 Recent reports on MPSP’s financial health have come out again! From a series of reports in The Star Paper from Council in dire straits, Council funds to last only six months, to Seberang Perai Council Going Broke, it looks like it is going to be finger pointing time again as to who is to blame on the MPSP financial woes. The main concern to the majority of the residents who are also rates payers is that will it affects the services of the council rendered to the people of Seberang Perai if council’s… Read more »


What you said is true, to a degree, K. But you have also, very conveniently, omit the part of sheer wastage, in the hand of the previous administration. Oh no, I’m turning into a LGE fanboy, ain’t I? Nope. I ain’t a fanboy for nobody. Just a plain ol’ Penang boy. Now back to the topic — What happen in MPSP is this : 1. The over-supply of white elephants, which should not be solely blamed on DSAI, for Badawi and KTK and many other BN cronies all have a hand in the pot. 2. The sheer wastage. Do you… Read more »



Please refer to the articles that I have posted.

I don’t necessarily disagree with you regarding KTK’s role. But the reason why we kicked KTK out was to have a more accountable and tranparant govt and NOT getting someone worse to replace him.

As you can see above, KTK’s hand was forced by someone whom our LGE is (allegedly) very closely related to politically.

I wonder why LGE has not hauled up this mastermind of this monstrous waste to explain the mess. If there are mismanagement, then why no action at all after 2 years ?


Just so you know where I come from — I had a peek at MPSP’s balance sheet right after 308 and it was shocking. From a surplus of RM 200 million in 1997 to a deficit of almost RM 60 Million. In other words, from 1997 to 2008, within a span of 12 years, MPSP has miraculously evaporated a total sum of RM 260 Million. Now … so we are on the same page … let’s factor in the RM 80 Million wastage caused by DSAI as you have been hinting. Let’s say it’s true, that DSAI has wasted RM… Read more »


As I said, from 1997 to 2008 MPSP had collected BILLIONS in revenue, and yet those BILLIONS are apparently not enough.

They had to blow away an additional RM 260 Million.

Way to go, bolehland !


Hello Gerakan k, if i were you i wont waste my time here… blur blur blur… I will be more concerned about my sundry shop in Ulu Selangor. Have your replenish your Apolo cakes? By the way, looks like many readers here are charmed by you… more famous than our Anil… How did you do that actually? Anyway, i do admire your strength, blur blur blur… Dont feel tired ah? O, you are right, some of the comments really can make you laugh… I am laughing at your “Ikan Bakar”. I think very soon Iron will become an Ikan Bakar…… Read more »


To Mr. Blur Blur Kee,

This is your spat against that Gerakan K guy.

You blur blur is your own business, but don’t blur blur until you can’t differentiate anything anymore.

So please do all of us a favor, stop pulling me into this, okay?

And Anil, don’t censor me anymore if this guy keep pulling me into his spat with other people, okay?


That is what I have been doing, Anil. I am here as a guest and you are the host, Anil. I respect you as the host and keep my best to not overstep my role as a guest. As for the others, I dunno. Some of them … when they ran out of stuffs (plural) they start putting up strawman and launch their personal attacks. Are they here to discuss or are they here to throw their childish tantrums? No wonder their idols (from both sides) act exactly the way they act — throwing childish tantrums, even inside the Dewan… Read more »


Iron Bakar Ikan, That is what you have been doing? Be a good guest that respects the host? You are just doing the opposite Iron! You had taken advantage of Anil’s ignorance to hurl profanities and vulgarities at others here. Come on, you are no angel young man! To comment in Anil’s blog is the “safest” as he goes to great length to moderate the comments, but, sometimes he lets through, which is normal when you as the guest took advantage of the host ignorance of your dialects! If you do not respect the host, respect the readers and if… Read more »


Mr. Anil,

I had requested Gerakan K’s help but he had not responded.

Gerakan K, just where are you, can you please take the liberty to explain to all of us here? We are not from Penang so we do not understand Hokkien, can you please assist? Or are you as usual going to be as slippery as ever?

Cheers bro!


Thank you for your compliment. I have been receiving so many compliments here that makes me suspect that you (are) the same person as Mr. Blur Blur Kee. Both of you write the same style. Both of you take the same stance. Both of you try so hard to impress on us by talking to each others. Sure, you are very gentlemen. So gentlemen that you abuse Anil’s courtesy by signing up as 2 different person but the fact that you are the same one. I am an old guy. I can log on whenever I want to. And you,… Read more »


Iron Bakar Ikan, Again you had seriously misjudged and your assumption that Kee and I are the same person is way off! I do not abuse anyone’s courtesy, and that is a matter of principle! Can you remember what Kalabakan (?) said to Zahrain when the latter accused him of one those frogs who were to jump on 916? Come on you are so very well versed with computers and technologies, how can you use such baseless assumptions? We are just ordinary laymen, using the computer to earn a living, we do not go so low as to create separate… Read more »

Gerakan K

aiyo kampung boy, I just to share info with you

my office staff will do it based on email alerts that sent out by the ERP system (which is consisting computerised POS, stocking system, live sales performance chart, and a lot more). No more manual works except the delivery of stocks.

Finally, maybe they got surplus because of stingy behavior. You really need to investigate whether there is any cut for allowance or benefit of their staff.

Are that fines being increased tremendously and indiscriminately just to increase its income ???

Training budget being cut ???


So by going through all the council reserves as well as the revenue for all these years, and running a deficit every year, now BN expects miracles from the current state government? This is even before we take into account future and pending lawsuits – the state government has already lost one multi-million suit… who knows how many else is in the pipeline?


Gerakan K, Enough is enough, Don’t shoot your mouth without any proof! Only extremely beautiful artificial trees and flower for you to enjoy ??? All villages in museum exhibition only ??? Tallest building in Malaysia ??? Direct bridge to Indonesia ??? YOU IDIOT! The above list are all BN projects nothing to do with MPSP and PR! Botanic Gardens does not come under MPSP but under the State Govt – Liar! Liar! Your pants on Fire! In MPSP Millions of Ringgit was saved by cancelling the supplying flowers to all MPSP offices! Was that A NECESSARY expenditure?? 4 Labourers (Not… Read more »


CONGRATULATIONS, well done Chief Minister Lim Guan Eng and Team!

You have managed Penang State so well and corruption arrested. We will support you and Pakatan Rakyat all the way for the Federal Government take-over come GE-13!

Gerakan K

Are you really excited about 14.6 million surplus as the result of cutting * NECESSARY * expenditure ??? I give you a familiar example. Look at Botanic Garden. By providing little or no maintenance, we can save a lot of money. But do you proud of it after looking at it now ??? The key concepts are that: 1) doing little or nothing at all! –> [SAVE MONEY BUT NO SERVICE] 2) instead of normal monthly maintenance, we now do it annually –> [SAVE MONEY BUT POOR QUALITY] 3) instead of 4 labours, now we use 2 –> [SAVE MONEY… Read more »


You love inefficiency: 4 persons to do 1 person job. Esok lusa attitude. No efficiency is OK. It’s not my problem. You love wasting public fund: Spend, spend, spend. Even if it’s of no use at all. (Just take a look at the Botanical Garden ugly arches approved by previous BN gomen. And one of them is not even 100% vertical – dangerous!) Buy, buy, buy. One person to one equipment. Or else work cannot jadi. Even if it cost a leg to pay with Ah Kong’s money! Project, project, project. No project, no ‘khang tow’. So what’s wrong with… Read more »

Phua Kai Lit

The government is the steward of the
people’s money (in the form of tax revenues collected), i.e. OUR money

So, any government that manages the people’s money well deserves the continued support of the people.
Any government that wastes tax revenues or permits
big “leakages” of public funds should be turned out of office.


8 X RM14.57 million reserves saved per year over 8 years = RM116.56 million.
That’s about how much went to ‘overspending’ on overpriced projects!
Penang is fortunate to have LGE as our CFO of Penang’s projects.
Otherwise, Penang’s wealth would have been sucked dry by leeches & rent seekers of ‘BeeN’ hegemony.

Gerakan K

It only takes 1 PICC to sweep clean RM50 million!

It only takes 1 lawsuit to sweep clean RM60 million!


And it will not happen cos we have a government that runs on competency unlike the previous zero kpi ktk who created the current mess. Like in Parliament he can`t even answer a simple question. What is he first.

lim theam hin


Gerakan K

This transformation is scary. Only extremely beautiful artificial trees and flower for you to enjoy ??? All villages in museum exhibition only ??? Tallest building in Malaysia ??? Direct bridge to Indonesia ???

p/s: only concrete suppliers and developers will love this transformation


TRUTH sets people free. But for … you, TRUTH scares … you.

tan, tanjong bungah

Hi everyone,

Congrats. to the MPSP and the State Govt for the surplus for the second year running – this is an achievement when justaposed against the previous 8 consecutive years of budget deficits of the previous administrations!

A budget deficit need not be a ‘bad’ thing, but 8 continuous years of budget deficits paints a totally different picture, the previous administrations had failed to act, causing the MPSP to be in a very precarious financial situation!


Congratulations to Pakatan government !!!

Well done !!!

With DAP’s CAT government, surely there will be surplus.

This really put BN government to shame… Corruption !!!

What say you Dr Koh and Dr Teng ???

Hidup Pakatan !!!

Gerakan K

deficit = corruption ???

OMG !!!

The US is a corrupt nation according to you definition

p/s: if there is CAT, where is the exco’s minute regarding to Kg Buah Pala demolition !!! ANSWER ME !!! ANSWER ME !!! ANSWER ME !!!

Gerakan K




If you wants the minutes, you better ask ALL the state government of BN to give you that. AND also ask KTK WHY he sold off the land. That includes other states where scandal and corruption abound. Darn if they will give you any minutes. Anyway Kg Buah Pala is history. The 9 will soon regret come the next GE. Soon these 9 villagers will start cursing you, sTEVEN AND THOSE from MIC, UMNO and Gerakan. THEY ARE NOT INTERESTed IN THE MINUTES, THEY WILL SOOn BE VERY INTERESTED IN THE DOUBSLE STOREY HOUSE WORTH 600,000/= which they won`t get… Read more »

Gerakan K

It is a matter of principle and truth.

RM600 000 or billions can’t BUY the truth.

The CAT is all about the principle.


Unckle Anil

What is the financial statement contains?


Congrats to MPSP and not forgetting our CM LGE who has shown wonderful expertise and leadership if compared to KTK of gerakan..
KTK when announcing the Inter-Religious council whatever u call it was bleaming with pride at his achievement !!!
But the Perkasa DPM said its just a small Fry !!!
A SLAP in the face of KTK !!!
Its time for Gerakan to leave the Umno Govt and join PR….Go REINVENT YOURSELF !!!

kacau kacau

I wonder what will Gerakan K say… i’m sure, as usual, he’ll have pretty interesting twist to this 🙂 Pretty creative guy, I must say…


Who need Gerakan K’s ‘sad to say’.
Proactive results speak for itself.


The longer PR rules, the more they will put to shame UMNO Baru and BN. Next year, the results will be better, and it will only gets better as time goes on. At least there is some comparison to make and for the Rakyat to see. Congratulations PR!


Don’t celebrate yet, Anil.

The deficit left behind by the previous administration is huge, and there are still pending lawsuits that may jeopardize future MPSP budget.


Iron, Agreed, deficit left behind by Gerakan/UMNO is huge, pending lawsuits etc… This is where competency and good management and Governance comes in. Corporate companies pay huge monies to get good managers, similarly, majority Penangnites, had chosen LGE to lead, and he had not failed Penangnites! Do not bother where he comes from, even from Timbuktu, as far as he is comepetent and governs well, so far, the results had been nothing but encouraging, is it not, Iron? Had your bakar ikan already? Heard the saying, it does not matter whether the cat is white or black, as far as… Read more »


Way to go MPSP, Mokhtar Mohd Jait and LGE.

That’s all we want. Show them by the sheer weight of performance and we’ll blow away the looters and plunderers!!


We are all of 1 race, the Human Race

charlie chow

Congratulations to the leadership and team in MPSP. Indeed all of you have done a wonderful and fantastic job. Under BN ,it was reported MPSP had a deficit for 7 long years, It takes PR only 2 years to turn it around. Keep up the good work and best wishes to all MPSP staff


This clearly show the competency, accountability and transparency of the government that truly care for the people unlike the corrupt ridden administration of zero KTK Gerakan and UMNO.