Penang renews call for fairer Federal revenue share after Anwar’s acknowledgement
GEORGE TOWN: Penang Chief Minister Chow Kon Yeow said Prime Minister Datuk Seri Anwar Ibrahim’s acknowledgement has validated the state’s long-standing call for a fairer share of federal revenue.
Chow said the figures confirmed Penang’s role as one of the country’s key economic engines and a net contributor to federal coffers, strengthening its case for fiscal returns that are commensurate with its contribution to the national economy.
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“What we are advocating for is not special treatment, but a fair return based on the state’s actual contribution to national development.
“As a state that is a major driver of the country’s manufacturing, trade, technology and innovation sectors, Penang requires continued investment to strengthen strategic infrastructure and maintain Malaysia’s competitiveness on the global stage,” he said in a statement yesterday.
On Tuesday, theSun reported that Anwar told the Dewan Rakyat only Selangor and Penang contributed more in tax revenue to the federal government than they received in federal development expenditure.
Anwar said the federal government collected an average of RM10.7 billion in tax revenue from Penang between 2023 and 2025, while federal expenditure in the state totalled RM7.9 billion over the same period.
Selangor generated an average of RM43.6 billion in tax revenue during the same period, compared with RM15 billion in federal development spending.
Chow welcomed Anwar’s decision to publicly disclose figures on federal revenue collection and expenditure allocation in Parliament.
“When policy is grounded in transparent facts and data, it will strengthen public confidence and enable national development planning to be carried out more objectively and effectively,” he said.
Chow also expressed appreciation for the federal government’s continued commitment since 2023 in approving and financing major infrastructure projects in Penang, including the Mutiara Light Rail Transit line, the expansion of Penang International Airport, the Juru-Sungai Dua elevated highway, flood mitigation projects and other strategic development initiatives.
He said Penang would continue to play its role as one of the country’s economic engines, having recorded RM63.96 billion in approved investments in 2025, comprising RM25.1 billion in foreign direct investment and RM38.85 billion in domestic direct investment.
Penang also maintained its position as Malaysia’s leading exporter, with exports reaching RM573.91 billion in 2025, accounting for 35.7% of national exports.
Chow said every investment channelled into Penang generated substantial returns for the nation through higher exports, quality employment opportunities, technology transfer and tax revenue for the federal government.
He added that the state’s priority was to further strengthen its position as one of Malaysia’s most dynamic hubs for industry, technology and innovation.
Chow also urged the federal government to prioritise efforts to establish the Penang International Financial Centre to complement the state’s high-technology manufacturing hub.
“This initiative is believed to be able to attract more international financial institutions, high-quality investments and global talent, while strengthening Malaysia’s position as a competitive financial and investment hub in Asia.”
Chow said the state government would continue to work constructively with the federal government to ensure development allocations and revenue returns are distributed fairly, strategically and according to each state’s actual contribution and development needs.
“I am confident that through close cooperation between the state and federal governments, Penang will continue to strengthen its position as a world-class economic hub and contribute even more significantly to the nation’s prosperity.
