Penang deserves a fairer return of federal revenue commensurate with its contribution to the nation’s economy, Chief Minister Chow Kon Yeow said.
He stressed that the state is not seeking special treatment, but equitable revenue distribution based on its actual contribution to national development.
Chow welcomed Prime Minister Datuk Seri Anwar Ibrahim’s clarification in the Dewan Rakyat that Penang is among the states that contribute more tax revenue to the federal government than the amount they receive in development expenditure.
“This recognition indirectly confirms the fact that Penang plays a crucial role as one of the country’s main engines of economic growth and is a net contributor to overall federal revenue,” he said in a statement.
He said he had repeatedly raised the matter at various national-level meetings and previously in the Dewan Rakyat.
“What the state government is advocating is not special treatment, but to ensure that revenue is returned fairly, based on the state’s actual contribution to national development,” he said.
He added that Penang requires continued investment to enhance strategic infrastructure while maintaining Malaysia’s global competitiveness.
Chow expressed his appreciation for the prime minister’s recognition of Penang’s contributions and thanked the federal government for its commitment since 2023 in approving and funding various major infrastructure projects in the state.
Among the projects approved and funded by the federal government are the Mutiara Line Light Rail Transit (LRT), the expansion of Penang International Airport (PIA), the Juru–Sungai Dua Traffic Dispersal Project (elevated highway), flood mitigation projects and various other development initiatives.
Chow said the state recorded approved investments totalling RM63.96 billion last year, comprising RM25.10 billion in foreign direct investment (FDI) and RM38.85 billion in domestic direct investment (DDI).
In addition, Penang maintained its position as Malaysia’s leading exporting state, with exports reaching RM573.91 billion in 2025, accounting for 35.7 per cent of the country’s total exports.
He also called on the federal government to realise the state’s aspiration of establishing the Penang International Financial Centre (PIFC).
“The establishment of the PIFC will complement Penang’s strengths as a high-technology manufacturing hub by developing the financial and high-value services sectors,” he said.
Source: Malay Mail
