Talks on federal takeover of Penang's waste services deferred

George Town, April 29, 2024 - Officials have announced that talks on the proposed federal takeover of solid waste management and public cleansing services in Penang have been postponed. State Local Government and Town and Country Planning Committee chairman Hng Mooi Lye revealed this occurred after the cabinet decided to delay the study and negotiations on April 29.

The primary reason for the postponement was to allow the Housing and Local Government Ministry to reassess the financial implications for the federal government, considering the current economic climate and increasing global oil prices. Hng emphasized that the state government would carefully evaluate any proposal to implement the Act in Penang, particularly focusing on financial aspects and service quality for residents.

He also mentioned that the negotiations, which began on February 28, 2024, aimed to ensure that solid waste management costs would not impose an excessive financial burden on the state government and residents while maintaining or enhancing service standards. The negotiations involved several rounds of meetings and discussions between the State Authority (PBN) and SWCorp.

The Act is already operational in several states, including Johor, Melaka, Negri Sembilan, Kuala Lumpur, Putrajaya, Kedah, Perlis, and Pahang, with Selangor being the most recent to adopt it.