Penang is strengthening internal resources and financial management to boost state revenue without burdening the people amid rising living costs, says Chow.
GEORGE TOWN: Penang is focusing on strengthening internal resources and improving financial management efficiency to ensure that the state revenue continues to grow without burdening the people, particularly in view of the rising cost of living.
Chief Minister Chow Kon Yeow said the state government has been taking strategic measures, including enhancing the efficiency of existing revenue collection through improvements to collection systems and stricter enforcement on arrears.
In addition, he said the state is optimising the use of state-owned assets through the disposal, leasing and redevelopment of non-productive assets to generate higher returns.
“We are also empowering the value-added economic sector by encouraging strategic investments, particularly in high-technology manufacturing, modern services and tourism sectors.
“The state government is also prudently diversifying its revenue sources without involving sharp increases in taxes or service charges,” he told the Penang State Legislative Assembly sitting here today.
He said this in reply to a question from Phee Syen Tze (PH-Sungai Puyu) on the state government’s strategic measures to improve revenue collection without burdening the people.
Chow said that the state government is also strengthening fiscal governance through the implementation of approaches such as zero-based budgeting (ZBB), high-impact spending, integrated financial performance monitoring, as well as enhancing transparency and accountability through audits and regular reporting.
He said these would not only improve state revenue in the short term but also establish a more resilient, inclusive and sustainable financial foundation in the long run.
Additionally, he said agencies such as the Penang Chief Minister Incorporated (CMI) are playing a more direct role in revenue generation through the management and optimisation of state assets.
“This includes rental collection, lease returns, as well as the implementation of the Request for Proposal (RFP) method to maximise the value of the state’s strategic assets in a competitive and transparent manner.
“As a result of this approach, CMI contributed RM6.41 million in revenue to the state government in 2024, which increased to RM54.2 million last year, reflecting the effectiveness of the asset management strategies implemented,” he added.
