PENANG'S current and former chief ministers have intensified calls for a fairer share of federal funding after Prime Minister Datuk Seri Anwar Ibrahim acknowledged in Parliament that the state is among Malaysia's largest tax contributors while receiving comparatively lower federal allocations.
Chief Minister Chow Kon Yeow said the figures presented by Anwar reinforced Penang's longstanding position that federal revenue distribution should better reflect each state's economic contribution rather than favouring other considerations.
He stressed that Penang was not seeking preferential treatment but an equitable allocation of resources commensurate with its contribution to national development.
“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,” Chow said in a statement.
He added that he had consistently raised the issue at national-level meetings and in Parliament, arguing that Penang deserves a fair return from the taxes generated by its economy.
Chow nevertheless welcomed the federal government's approval of several major infrastructure projects for the state, including the Mutiara Line Light Rail Transit project, the expansion of Penang International Airport, the Juru–Sungai Dua Traffic Dispersal Project and flood mitigation initiatives.
He also thanked Anwar for publicly disclosing detailed figures on federal revenue collection and expenditure allocations, and urged the Finance Ministry to support Penang's proposal to establish the Penang International Financial Centre.
Former chief minister Lim Guan Eng echoed the call, urging the federal government to address what he described as a RM2.8 billion shortfall in allocations to Penang between 2023 and 2025.
He argued that the government should adopt a formula based on constitutional principles of equality before the law to ensure states receive allocations that fairly reflect their contributions.
According to figures tabled by Anwar in Parliament, Penang contributed an average of RM10.7 billion in federal revenue annually between 2023 and 2025 but received RM7.9 billion in federal allocations over the same period.
By comparison, Selangor contributed RM43.6 billion and received RM15 billion, Johor contributed RM14 billion and received RM16 billion, while Kedah contributed RM3.7 billion but received RM9.5 billion.
Lim said Penang and Selangor were the only two Peninsular Malaysian states that received less in federal allocations than the revenue they contributed.
“Even Kedah, despite being an opposition-controlled state, received RM9.5 billion—more than Penang’s RM7.9 billion—despite contributing only RM3.7 billion. There is no justification for Penang to receive less than Kedah when Penang contributes much more to the Federal Government,” he said. - July 1, 2026
