PETALING JAYA: A DAP MP has criticised the federal government for cancelling a RM2 billion loan guarantee for the Penang LRT project.
In a statement, Bukit Mertajam MP Steven Sim described the move as a “disappointing, despicable act of political vendetta” against the state and people of Penang.
Yesterday, former prime minister Najib Razak accused former finance minister Lim Guan Eng of secretly using a government guarantee to obtain a US$500 million loan to finance some of the cost of the Penang tunnel project.
Najib also revealed the loan had been cancelled by the Perikatan Nasional government, which took over in March.
“The state of Penang is not asking for a loan or money from the federal government for this project.
“A federal loan guarantee is the least that the federal government can do for Penang,” said Sim today, adding a survey had shown that some 97.7% of people in Penang want an LRT.
Sim said in the 2021 budget, Putrajaya allocated RM15 billion for a number of transport-related projects in Sabah, Sarawak, Johor and the Klang Valley.
“On top of these, it was recently announced that the federal government will develop a monorail system in Putrajaya and fund the RM6 billion transit system in Kuching under the 12th Malaysia Plan.
“While multibillion-ringgit transport projects are being funded by the Perikatan Nasional administration in other states, Penang’s loan guarantee was disappointingly cancelled.
“This is despite Penang being the second-highest tax contributor to the country.”
He called on the government to reinstate the loan guarantee or fully fund the Penang LRT project.