Penang has decided to subsidise diesel costs for contractors involved in major development projects in the state, as the government seeks to ease pressure from rising prices on the private sector. [1]
Chief Minister Chow Kon Yeow said the measure is meant to soften the cost burden on contractors and keep key works moving. He said Penang Development Corporation will negotiate with contractors who have submitted claims tied to higher prices and absorb part of the increase to help ongoing projects. [1]
Chow said projects already underway will continue. “Projects that are already underway will continue,” he said. [1]
The state may delay projects that have not yet been awarded because contractors are struggling to bid amid higher costs. Chow said Penang does not yet need to table a supplementary budget because savings measures can be used instead. He added that the state’s fiscal budget is in surplus and the financial position remains healthy if costs are controlled and revenue collection meets expectations. [1]
Issues expected to dominate the state legislative assembly sitting include rising costs, the demolition of Waterfall Cafe, worsening traffic congestion linked to the Mutiara Light Rail Transit project, and the Silicon Island reclamation drive. The sitting is scheduled to begin on May 8, 2026. [1]
