GEORGE TOWN, July 1 — Penang deserves a fairer return of federal revenue commensurate with its contribution to the nation’s economy, Chief Minister Chow Kon Yeow said today.
He stressed that the state is not seeking special treatment, but equitable revenue distribution based on its actual contribution to national development.
Chow welcomed Prime Minister Datuk Seri Anwar Ibrahim’s clarification in the Dewan Rakyat that Penang is among the states that contribute more tax revenue to the federal government than the amount they receive in development expenditure.
“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,” he said in a statement today.
He said he had repeatedly raised the matter at various national-level meetings and previously in the Dewan Rakyat.
“What the state government is advocating is not special treatment, but to ensure that revenue is returned fairly, based on the state’s actual contribution to national development,” he said.
He added that Penang requires continued investment to enhance strategic infrastructure while maintaining Malaysia’s global competitiveness.
Chow expressed his appreciation for the prime minister’s recognition of Penang’s contributions.
He also thanked the federal government for its commitment since 2023 in approving and funding various major infrastructure projects in the state.
Among the projects approved and funded by the federal government are the Mutiara Line Light Rail Transit (LRT), the expansion of Penang International Airport (PIA), the Juru–Sungai Dua Traffic Dispersal Project (elevated highway), flood mitigation projects and various other development initiatives.
“I would also like to take this opportunity to express my appreciation to the prime minister for openly disclosing figures relating to federal revenue collection and expenditure allocation in Parliament,” he said.
He said policies based on facts and transparent data strengthen public confidence while enabling national development planning to be carried out more objectively and effectively.
“Penang will continue to play its role as one of the country’s engines of economic growth,” he said.
Chow said the state recorded approved investments totalling RM63.96 billion last year, comprising RM25.10 billion in foreign direct investment (FDI) and RM38.85 billion in domestic direct investment (DDI).
“In addition, Penang maintained its position as Malaysia’s leading exporting state, with exports reaching RM573.91 billion in 2025, accounting for 35.7 per cent of the country’s total exports,” he said.
He also called on the federal government to realise the state’s aspiration of establishing the Penang International Financial Centre (PIFC).
“The establishment of the PIFC will complement Penang’s strengths as a high-technology manufacturing hub by developing the financial and high-value services sectors,” he said.
He said it would attract more international financial institutions, high-quality investments and global talent.
“This will further strengthen Malaysia’s position as a competitive financial and investment hub in the Asian region,” he said.
Chow said Penang would continue to adopt a constructive approach and strengthen close cooperation with the federal government to ensure the state remains a key driver of the nation’s economic growth.
“Our aspiration is not to seek special treatment, but to ensure that the distribution of development resources and the return of revenue are carried out fairly, strategically, and based on actual contributions and genuine needs,” he said.
