KUALA LUMPUR, May 3 – Perikatan Nasional’s (PN) repeated claims that the Federal Government is sidelining opposition-led states like Kelantan are misleading, Economy Minister Datuk Seri Rafizi Ramli said today.

Rafizi urged opposition parties to focus on driving economic growth through innovation and expertise instead of playing the victim.

"That is why it would be far more beneficial for us to compete by driving economic growth through expertise and innovation, rather than stoking sentiment by claiming that the Federal Government is victimising opposition-led states,” Rafizi posted on X here.

Rafizi questioned whether Kelantan’s potential tax revenue would be enough to support its development needs, particularly given that federal taxes are primarily derived from income and sales taxes tied to business activity.

"If the Kelantan government cannot create an investment-friendly climate with quality jobs, it is doubtful they could guarantee the people’s wellbeing — even with full control of tax collection,” he said.

He argued that development funding from the Federal Government currently covers many of Kelantan’s needs, and that replicating this through state revenue alone would be difficult.

Rafizi pointed out that key infrastructure issues in the state, such as the stalled KB Sentral bus terminal and long-standing water supply problems, are unlikely to be solved without significant federal funding.

He also said that allegations that taxes collected from Kelantan are not channelled back to the state for development are a political tactic used to incite dissatisfaction rather than offer solutions.

"The accusations have become so extreme that the Pasir Putih MP even challenged the Federal Government to allow Kelantan to collect its own taxes instead of sending them to Putrajaya.

"But would the state’s development issues be resolved if Kelantan were to collect its own taxes?” he asked.

Last month, Prime Minister Datuk Seri Anwar Ibrahim said allocation to the PAS-led Kelantan has increased by 30 per cent to RM762 million last year compared to RM588 million in 2023.

Meanwhile, the allocation to Terengganu also recorded a 28 per cent increase to RM2.02 billion last year from RM1.57 billion the previous year.