GEORGE TOWN, March 6 — The federal government’s decision to increase the allocation to state governments to RM10.5 billion this year are expected to spur more development that will directly benefit Malaysians.
Penang Chief Minister Chow Kon Yeow said the state government welcomed the decision by the National Finance Council (MKewN), describing it as a proactive step to strengthen state fiscal positions.
“We welcome any additional allocation or financial incentive from the Federal Government.
“We understand the financial constraints faced by the country; therefore, the improvements announced are a step forward and something to be thankful for,” he told reporters here today.
However, Chow emphasised the need to undertake a comprehensive restructuring of the country’s financial framework to ensure both the Federal and state governments can mobilise resources more efficiently to strengthen socio-economic development nationwide.
He was speaking to reporters after the Ceremony of Presentation of the Instruments of Appointment and the Taking of the Oath of Office and Allegiance, as well as the Oath of Secrecy by Penang State Executive Council (Exco) member and Bukit Tambun state assemblyman Goh Choon Aik.
Yesterday, the Finance Ministry announced that MKewN has agreed to increase federal allocations to state governments, which are expected to reach RM10.5 billion this year from RM10.3 billion in 2025.
The ministry said the council also agreed to enhance federal allocations to state governments, particularly under the Joint List Grant, State Road Maintenance Grant and the distribution of the Tourism Tax. — Bernama
