Negotiations on the proposed takeover of solid waste management and public cleansing services in Penang under the Solid Waste and Public Cleansing Management Act 2007 have yet to be finalised.
Local Government and Town and Country Planning Committee chairman H’ng Mooi Lye said the Cabinet decided on 29 April to defer the study and negotiations on the matter, with NST reporting that the postponement takes into account the current economic situation and rising global oil prices.
The delay gives the Housing and Local Government Ministry time to reassess the financial implications for the federal government. H’ng said that enforcing the Act in Penang would follow the new direction for expanding it, which the ministry is still fine-tuning.
“The state government will ensure that any proposal to implement the Act in Penang is thoroughly scrutinised, particularly in terms of its financial implications and the quality of services provided to residents,” he said.
He was answering Lee Khai Loon (PH-Machang Bubuk), who asked for the chronology of the state government’s decisions on adopting the Act, and for the factors behind the long negotiations with the ministry and SWCorp.
Penang has attached conditions since the talks began. Chief Minister Chow Kon Yeow set them out in a letter to the ministry dated 13 June 2024, with the state asking for the final say over which company is appointed concessionaire, as Buletin Mutiara, the state government’s news portal, reported.
Under those terms, the state may propose any company, including a subsidiary of the state government, to run the service in Penang. The appointed concessionaire is to build and operate a waste-to-energy plant at federal expense, and the scope and frequency of services must match or better present standards.
H’ng also said that permanent post warrants at local authorities involved in the privatisation will be retained so that departments that need staff can fill those positions, and that contract staff moved to the concession company must be guaranteed permanent posts.
Any addition or change to the scope and frequency of services would need state approval first, he said, because it affects local authority contributions.
The negotiation process began on 28 Feb 2024, when the National Solid Waste Management Department was invited to present the proposal to the state executive council. The council agreed that talks should be held, but left the final decision to the outcome of the negotiations and to its own approval.
Several rounds of meetings, workshops and discussions between the State Authority and SWCorp have been held regularly since, to negotiate the terms for adopting the Act in Penang. H’ng said the talks have weighed the need to keep solid waste management costs from placing an undue financial burden on the state government and residents, while holding service standards at their present level or improving them.
Act 672 is already in force in Johor, Melaka, Negri Sembilan, Kuala Lumpur, Putrajaya, Kedah, Perlis and Pahang, with Selangor the most recent state to adopt it.
