Penang proposes a special national commission to review the federal-state revenue-sharing model for fiscal justice and development sustainability.
GEORGE TOWN: Penang has proposed establishing a special national commission to review the revenue-sharing model between federal and state governments.
Chief Minister Chow Kon Yeow said this is essential to ensure fiscal justice and long-term development sustainability.
“The establishment of a special commission is the best mechanism to transparently reassess the existing formula based on clear agreements,” he told the state assembly today.
Chow emphasized this review should benefit all states, not just Penang, amid ongoing revenue-sharing debates.
He responded to Goh Choon Aik’s question about Penang’s claim for 20% of its tax revenue.
Penang maintains strong economic momentum as a national economic powerhouse, supported by robust investment and export figures.
According to Malaysian Investment Development Authority data, Penang’s manufacturing investments reached RM17.3 billion in 2024.
The state recorded RM12.5 billion in investments as of June this year.
Chow dismissed concerns that revenue claims would weaken the federal government, describing the relationship as mutually reinforcing.
He explained it’s about balancing state-generated revenue with local development needs.
The chief minister praised Prime Minister Datuk Seri Anwar Ibrahim’s administration for its open approach.
This openness has successfully realized several matters under the Malaysia Agreement 1963.
“If MA63 can be realised, I believe other issues including revenue sharing can be considered with a more open attitude,” Chow said. – Bernama
ALSO READ:
Penang allocated over RM30 mln to Tamil schools, Punjabi education centres – Chow
NADMA to provide aid for Penang flood victims soon says Chow
