Chief Minister Chow Kon Yeow said the Prime Minister’s recognition confirmed that Penang plays a very important role as one of the main drivers of the country’s economic growth and a net contributor to the federal revenue as a whole.
GEORGE TOWN: Penang deserves to receive a fairer and more equitable revenue return following Datuk Seri Anwar Ibrahim’s recognition that the state is among those that contribute tax revenue to the federal government in excess of the total development expenditure received.
Chief Minister Chow Kon Yeow said the Prime Minister’s recognition confirmed that Penang plays a very important role as one of the main drivers of the country’s economic growth and a net contributor to the federal revenue as a whole.
“(Anwar’s) statement also confirms what I have raised many times in various national and Dewan Rakyat meetings before, that Penang deserves to receive a fairer revenue return commensurate with its contribution to the national economy.
“What the state government is fighting for is not to get special treatment but to ensure that the revenue return is made fairly, based on the state’s actual contribution to national development,” he said in a statement today.
As a state that is the heart of the country’s manufacturing, trade, technology and innovation sectors, he said Penang needs continuous investment to ensure that the provision of strategic infrastructure is enhanced, thus maintaining Malaysia’s competitiveness at the global level.
Yesterday, Anwar in the Dewan Rakyat said that almost all states received higher federal allocations compared to tax revenue, except for Selangor and Penang.
The Finance Minister said that for Penang, the average revenue obtained by the federal government was RM10.7 billion while the expenditure in the state amounted to RM7.9 billion for the period 2023 to 2025.
Regarding In addition, Chow said the state government appreciated the recognition of Penang’s contribution and the commitment of the federal government since 2023 in approving and financing various major infrastructure projects including the Light Rail Transit (LRT) Mutiara Line, the expansion of the Penang International Airport (LTAPP) and the Juru-Sungai Dua Traffic Dispersion Project (PTJSD).
He also expressed his appreciation to Anwar for openly disclosing figures on the collection of revenue and distribution of federal expenditure in Parliament, which he said reflected the MADANI Government’s commitment to upholding the principles of transparency, accountability and good governance.
Meanwhile, Chow also hoped that the federal government could give priority to joint efforts in realising the aspirations of the Penang International Financial Centre (PIFC) which would further complement Penang’s strength as a high-tech manufacturing hub through the development of the financial sector and high-value services.
“This initiative is believed to be able to attract more international financial institutions, high-quality investments and global talents, thus strengthening Malaysia’s position as a competitive financial and investment hub in the Asian region,” he said.
He pledged that the state government would continue to adopt a constructive approach and strengthen close cooperation with the federal government to ensure that Penang continues to be the main driver of the country’s economic growth.
