The Protect Karpal Singh Drive Action Committee (ProtectKarpal) urges the Penang state executive council to reject any further extension of time and take lawful steps to terminate the 21 February 2020 joint development agreement between the Penang state government, the Penang Development Corporation and PLB Engineering Berhad at its 20 May meeting.
PLB’s own audited reports have revealed three consecutive years of material going-concern warnings.
Penang has already experienced the costly termination of another landfill-related project involving PLB Terang Sdn Bhd.
This is not an allegation of wrongdoing. It is a demand for responsible government before public land, a public coastline and public trust are exposed to further risk.
For three financial years – 2023, 2024 and 2025 – PLB’s external auditor, Grant Thornton Malaysia PLT, drew attention to material uncertainties that may cast significant doubt on the ability of PLB Engineering Berhad or the group to continue as a going concern.
“The issue before exco is simple: would Penang responsibly entrust public land, public coastline and a claimed RM1bn rehabilitation-development obligation to a JDA (joint development agreement) partner whose own auditor has raised going-concern red flags for three consecutive years?” said Dr K Ganesh, the chair of ProtectKarpal and the Bandar Sri Pinang Pulau Pinang Residents’ Association (PBSP).
PLB’s audited reports show a pattern that the state government cannot ignore:
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| Financial year | Auditor’s going-concern red flags |
| 2023 | Group net loss of RM28.0 million; Company net loss of RM18.4m; Group current liabilities exceeded current assets by RM82.4m; Company current liabilities exceeded current assets by RM25.4m. |
| 2024 | Group net loss of RM12.8m; Company net loss of RM17.1m; Group current liabilities exceeded current assets by RM54.8m; Company current liabilities exceeded current assets by RM52.2m. |
| 2025 | Company net loss of RM17.5m; Group current liabilities exceeded current assets by RM25.8m; Company current liabilities exceeded current assets by RM71.2m. |
In all three years, PLB’s continuation as a going concern was stated to depend on factors such as successful disposal or sale of assets, completion of ongoing construction and property development projects, and continued financial support from bankers.
ProtectKarpal stresses that this is not an allegation of insolvency or wrongdoing. It is a demand for responsible government.
A going-concern warning signals a financial risk. When that signal appears repeatedly for three years in a listed company’s audited reports, no responsible state government should treat it as a minor technical note.
The concern is made more serious by Penang’s own recent experience with PLB Terang Sdn Bhd, a PLB subsidiary involved in the Pulau Burung Landfill phase 3 project.
Public reports state that the Penang government terminated PLB Terang’s services after discovering numerous non-compliances and delays, and later entered into a settlement agreement under which RM35m would be paid for the transfer of rights and ownership of facilities to the Seberang Perai City Council and the Penang Island City Council.
State executive councillor H’ng Mooi Lye explained that the payment was a buyout or transfer arrangement, not compensation.
That history matters. Penangites should not be asked to accept another landfill-related risk without full disclosure.
If one landfill concession involving a PLB-linked company had already required termination, mediation and a RM35m settlement arrangement, the state must explain why it should now extend another PLB-linked public land and landfill rehabilitation deal, especially after repeated environmental impact assessment failures and repeated extensions.
H’ng’s reported assertion that the rejection of the environmental impact assessment is “not final” does not answer the public-interest question: if landfill rehabilitation is truly urgent, why has the state kept extending a joint development agreement that has failed for years to satisfy basic environmental impact assessment safeguards, instead of separating immediate landfill safety works from reclamation-driven development?
ProtectKarpal supports the safe and urgent rehabilitation of the Jelutong landfill. Residents living near the landfill have waited too long for relief from fire risks, gas emissions, leachate, odour and anxiety over land stability.
But rehabilitation must not become a blank cheque for weak governance, repeated extensions and unresolved financial exposure.
“Residents are not asking the State to abandon landfill safety. We are asking the state not to gamble with our neighbourhood, our coastline and our public assets,” said Ganesh.
“The lesson from Pulau Burung is clear: when warnings are ignored, the public may still pay – whether through money, delay, legal exposure, public health or loss of trust.”
The 2020 joint development agreement required PLB to obtain key approvals, including approvals for environmental, traffic and social impact assessments within 18 months.
That deadline has long passed. The project has since seen repeated extensions, while the environmental impact assessment has reportedly failed to secure approval five times.
State reports now confirm that PLB’s further extension of time request is expected to be considered by the state executive council on 20 May.
The state government cannot treat this as a matter of routine paperwork. The PDC is a state statutory body. The project involves public land, a public coastline, Middle Bank, Karpal Singh Drive, nearby residents and long-term environmental risks. Developer-funded does not mean public-risk-free.
ProtectKarpal calls on the Penang state executive council to:
- Reject any further extension of time to PLB under the 2020 joint development agreement
- Take lawful steps to terminate, rescind or allow the agreement to lapse, subject to immediate legal advice protecting the public interest
- Disclose all financial due diligence studies conducted after PLB’s 2023, 2024 and 2025 ‘going concern’ warnings.
- Publish the full joint development agreement, all extension of time approvals, PDC board papers, Penang executive council papers, risk assessments, rejection documents for the five environmental impact assessments, guarantees, performance bonds, indemnities and termination-risk documents, with only strictly necessary legal redactions
- Refer the matter urgently to the Penang Public Accounts Committee to examine financial capacity, procurement governance, public exposure and decision-making accountability
- Prepare a rehabilitation-only alternative that separates urgent landfill safety works from unresolved reclamation and commercial development components
Penang does not need another extension built on uncertainty. Penang needs lawful governance, financial prudence and transparent rehabilitation.
ProtectKarpal urges residents, civil society groups, professional bodies and elected representatives to speak up: no more extensions, full disclosure, a PAC inquiry, and lawful termination of the 2020 joint development agreement. – ProtectKarpal
Sources:
PLB Engineering Berhad 2025 Annual Report:
https://plb.com.my/wp-content/uploads/2025/12/PLB-AR2025.Bursa_.pdf
PLB Engineering Berhad 2024 Annual Report:
https://plb.com.my/wp-content/uploads/2024/12/PLB-AR2024.pdf
PLB Engineering Berhad 2023 Annual Report:
https://plb.com.my/wp-content/uploads/2024/04/PLB-AR2023.pdf
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