PENANG Chief Minister Chow Kon Yeow marked a double celebration today when he marked his 67th birthday with the tabling the lowest fiscal deficit ever recorded by the state at RM19.92 million.
Chow said he was confident that next year's fiscal budget, would be driven by a optimistic 5.4% gross domestic product (GDP) growth this year.
It is largely driven by sustained demand in the semiconductor sector, powered by the global digitalisation drive, capped with the migration to Artificial Intelligence (AI).
Chow revealed that last year's GDP was 4.8% compared to 3.3% in 2023 while ‘s total GDP output last year was worth RM121.5 billion, contributing seven percent to the country's national GDP.
Manufacturing and services constituted 94.3% of the GDP with the rest going to construction 3.2%, agriculture 1.8%, mining and others 0.7%.
Penang tabled a budget where its estimated revenue was RM1.068 billion against expenditure of RM1.088 billion.
Over the years, it has lowered the deficit and this year's Budget is the lowest in the state's history, Chow told the legislative assembly.
Next year's budget would be themed under the agenda of improving the quality of life, raising the household income, empowering the people through public participation, investing in living conditions and rehabilitating those left behind.
Chow outlined that the increase in quality living means focus on sustainability and greenery initiatives.
He wants the recycling rate, which now stands at 37.8% to be improved while the state will set up an incubator for greening the environment and an urban farming centre of excellence.
About RM8.99 million has been set aside for upgrading state healthcare facilities.
Chow said that this year, the trade war has narrowed the economic eco-system in developing nations, including Malaysia.
He acknowledged that there is inflationary pressure, and the threat of tariffs have also driven up prices and raw produce.
But the state is resilient and intends to meet the challenges head on, said Chow.
He also announced that the state's civil service would be entitled to a 0.75 of one month wages as their annual bonus with RM1,000 as the celling.
Another RM300 each would be given to 3,358 state teachers and staffers.
He also disclosed that the state staffers would now be given a three-year employment contract instead of an annual term.
He concluded his budget presentation with a call for support among all state assemblymen. - November 14, 2025.
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