GEORGE TOWN, June 9 — Penang Chief Minister Chow Kon Yeow today dismissed claims that the state’s cash reserves had risen to more than RM600 million because of the recent quit rent hike, saying the increase was driven by a surplus recorded in 2025.
He said the balance in the state’s Consolidated Revenue Account had already increased before the revised quit rent rates came into effect on January 1 this year.
“We already saw an increase in the reserves before the new quit rent rates came into effect on January 1, 2026,” he told reporters at a press conference here.
Chow said the state recorded a surplus in 2025, with cash reserves exceeding RM500 million as of December 31, 2025.
“This is not related to the quit rent increase. When did the increase take effect? January 1, 2026. The surplus has nothing to do with the quit rent hike,” he said.
His remarks come after allegations that Penang’s cash reserves had declined in 2024, resulting in a deficit.
Responding to the criticism yesterday, Chow said the state’s reserves in the Consolidated Revenue Account had increased to RM616 million in the first five months of this year.
Following that, critics alleged that the increase in state revenue was achieved through taxes, additional charges and tariffs that burdened the public.
Chow, however, said the state government had not projected substantial additional revenue from the revised quit rent rates.
“I already announced in the state assembly that if we get RM50 million, I would already be very happy,” he said.
