Federal development expenditure in Penang has risen approximately 60 per cent under the Madani administration, reflecting what the government describes as a more equitable approach to national resource distribution.
Prime Minister Datuk Seri Anwar Ibrahim said allocations to the state, which dropped below RM5 billion in both 2021 and 2022, have since increased steadily.
“In 2021 and 2022, federal spending for Penang did not reach RM5 billion. Under the Madani government, we are restoring what is fair and reasonable,” he said.
Speaking at the Road Transport Department’s 80th anniversary celebration in Batu Kawan today, Anwar disclosed that Penang’s allocations rose to RM5.7 billion in 2023, RM5.8 billion in 2024, and RM7.6 billion in 2025, with RM7.8 billion allocated this year.
“This means an increase of about 60 per cent compared with 2022,” he said.
The increased spending covers major infrastructure initiatives, including the Mutiara Line light rail transit project and highway upgrades between Juru and the Sungai Dua Toll Plaza, both recently announced.
Anwar acknowledged the LRT project faced political criticism in Parliament over costs but defended it as essential for long-term development.
“The original plan was for the LRT to remain within the island. I understand the needs of development more broadly, so I proposed that it be extended to the mainland,” he said.
Describing himself as an “anak seberang”, Anwar noted the expansion inevitably raised project costs.
He added that similar development spending increases were recorded in other states including Kelantan and Terengganu, emphasising that no region was being neglected.
“We are increasing allocations for all states because national revenue has also increased,” he said.
The Prime Minister said the Madani administration’s approach ensures more balanced development distribution across states, moving away from previous imbalances while committing to efficient project implementation that delivers tangible public benefits.
Source: NST
