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.

Pahang tops the list at RM2,922.98 million, followed by Sabah (RM2,608.46 million), Sarawak (RM2,531.25), Kedah (RM2,283.3 million) and Kelantan (RM1,342.41 million).

“As the state with the lowest debt owing to the federal government, we feel we should get incentives in terms of financial allocations,” Lim said at a press conference in Komtar today.

“There should be some motivation for our good performance, or else we should follow Pahang, which has the highest debt at RM2,922.98 million,” Lim said.

“Pahang owes the most money to the federal government but nothing happens,” added Lim, who is also DAP secretary-general.

'No wonder our economy is so bad'

He was referring to a parliamentary reply from the Finance Ministry to Seputeh MP Teresa Kok, who asked the government to reveal the amount of debts owing to Putrajaya, according to each state, up to December 2015.

Lim noted that Pahang is the home state of Prime Minister Najib Abdul Razak, and added, “it’s no wonder our economy is so bad”.

He said something was very wrong with the country when the issue of economic performance was not important anymore, especially when such issues are not highlighted in the media.

The media, he added, seemed to be more interested in highlighting racist remarks by certain quarters, including lies spread against the Penang government.

Not giving Penang incentives, although it has made an effort to pay back its debts to the federal government, was like telling students there is no point to score As in their examinations.

“It is like berating and insulting the state government that performs well in its administration. Bad students are given promotion but the good ones are ignored.

“If we do not get incentives for paying back debts, why do we have to pay up?”

“Don’t give the impression that it is not worthwhile to pay debts, don’t make it look like as if those who pay their dues are not very smart,” Lim added.