Penang CM welcomes increased federal allocation to states, calling it a proactive step to strengthen fiscal positions and drive socio-economic development.
GEORGE TOWN: The Federal Government’s decision to increase allocations to state governments to RM10.5 billion this year is expected to catalyse further development benefiting Malaysians directly.
Penang Chief Minister Chow Kon Yeow welcomed the National Finance Council’s proactive step to strengthen state fiscal positions.
He described any additional federal allocation or financial incentive as welcome, acknowledging the country’s financial constraints.
“The improvements announced are a step forward and something to be thankful for,” Chow told reporters.
However, he emphasised the need for a comprehensive restructuring of the national financial framework.
This restructuring would ensure both federal and state governments can mobilise resources more efficiently to strengthen nationwide socio-economic development.
Chow spoke after the ceremony for the appointment of Penang State Executive Council member Goh Choon Aik.
The Finance Ministry announced the council’s agreement to increase federal allocations yesterday.
The allocation is expected to reach RM10.5 billion this year, up from RM10.3 billion in 2025.
