Malaysia

Penang’s finances on track after five years of budget deficits, says CM

Chow Kon Yeow said last year's fiscal budget, saw a deficit of about RM33 million.

Updated 1 year ago · Published on 13 Sep 2025 7:28AM

Penang’s finances on track after five years of budget deficits, says CM
During Covid-19, Penang spent RM174.52 million to counter the pandemic. - September 13, 2025

by Ian McIntyre

PENANG is on track towards better fiscal management after having incurred high expenditures during the pandemic years, which resulted in five consecutive years of deficits in its Budget.

The state has various strategies to drive more revenue collection from ratepayers here, among which, is a new land tax rate to be revealed by next week.

Chief Minister Chow Kon Yeow in a direct rebuttal towards Gerakan deputy president Oh Tong Keong's assertion that the state's finances were in disorder, said the state may even achieve a surplus this year.

Reasserting that the state's fiscal policies were now gradually recovering after the lean spell due to huge assistance being rendered during the Covid-19 pandemic (2020 till 2022), Chow said last year's fiscal budget, saw a deficit of about RM33 million.

"By 2028, I hope to leave behind up to RM1 billion in consolidated revenue if our strategies to increase income bears fruit."

Chow told a press conference that this year's fiscal may yield a surplus Budget after five consecutive years of being in the red due to spending outstripping income.

Covid-19 had forced the state to spend a considerable sum to ensure the people were able to withstand the lockdowns and economic standstills.

Revealing the state expenditure since 2020, Chow said that the bulk of it was for the I-Sejahtera welfare fund for single mothers, senior citizens, the disabled, top students, housewives and funeral expenses.

For this category, Penang allocated RM370.45 million for the last five years.

During Covid-19, Penang spent RM174.52 million to counter the pandemic.

Those two categories formed the bulk of the expenditure from 2020 until 2024.

Penang also spent RM93.01 on incentives to encourage public transport, as well as RM69.09 million on state vernacular, religious and missionary schools.

Another RM68.95 million was allocated for maintenance work of public low-cost housing, amounting to RM1.019 billion overall that Penang has spent for the state, said Chow.

Earlier, he also disclosed that the state will host a Penang2030 carnival at Komtar on October 11 focused on astronomy and space exploration.

The state will work with the green council, Penang Tech Dome, the Penang Development Corporation (PDC) Setia Urus Sdn Bhd and both city councils for the day carnival at Level 3 and 4 of Komtar - the state administrative centre. - September 13, 2025.

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