Penang Chief Minister Lim Guan Eng wants the federal government to provide incentives to the state for being able to pay back its debts.

Lim said Penang - despite being a small state - managed to keep its debts at RM69.36 million (or 0.41 percent), the lowest compared with the other states in the country.

Currently, the total amount owed to the federal government by all states is RM16.825 billion.