GEORGE TOWN, May 12 — The Penang government it focusing on high-value investments, tourism, the digital economy and new economic sectors as part of a long-term strategy to reduce dependence on the federal government.
Penang Chief Minister Chow Kon Yeow said the state’s short-term approach focuses on strengthening existing investment sectors by facilitating approval processes and optimising industrial land use through agencies such as the Penang Development Corporation (PDC).
He said the strategy would enable the state to generate direct revenue through land premiums, rentals and related economic activities.
“In the tourism sector, focus is on improving existing products such as heritage, gastronomic and medical tourism and the state will also continue to improve the collection of related fees,” he said at the State Legislative Assembly sitting today.
Chow was responding to an oral question from Datuk Seri Reezal Merican Naina Merican (BN-Bertam) on the state government’s short-term and long-term strategies to increase state revenue while reducing reliance on Putrajaya.
He said the state government is also accelerating the digitalisation of public services, including revenue collection systems, to improve efficiency and reduce leakages.
He said the state is also reviewing fees and charges periodically, enforcing the collection of outstanding payments and monetising state assets as part of efforts to strengthen non-tax revenue sources.
“For the long term, we are focused on developing high-value economic sectors to ensure more sustainable revenue generation,” he said.
This includes attracting investments in advanced semiconductor industries and the digital economy with support from InvestPenang, he added.
“The tourism sector is also shifting towards high-quality segments such as medical tourism and the organisation of Meetings, Incentives, Conferences/Conventions and Exhibitions (MICE) to increase tourist spending per capita,” he said.
He added that the state is strengthening its digital economy and smart state initiatives through data analytics and digital talent development to enhance competitiveness.
Chow said the state government is also exploring new revenue streams through the green economy, including Ecological Fiscal Transfer (EFT) mechanisms, as well as public-private partnerships (PPP) for strategic projects.
“This approach aims to reduce dependence on traditional revenue sources while enhancing the state’s fiscal resilience,” he said.
He said fiscal governance reforms are also being implemented through zero-based budgeting, centralised financial performance monitoring and stronger accountability measures via periodic audits.
Chow added that a whole-of-government approach involving coordination between state departments, local authorities and government-linked companies (GLCs) would ensure all entities play an optimal role in generating state revenue.
