Following the move by the cabinet, Johor and Kedah state governments, Penang has also decided to cut the salaries of its state government leaders by 10 percent.

Making the announcement today, Chief Minister Chow Kon Yeow said the pay cuts for him and his state executive councillors will take effect from tomorrow, June 1.

"The 10 percent deductions from our salaries will be channelled to the Tabung Harapan (Hope Fund)," Chow said at a press conference.

"The total monthly deductions for me and the 10 state exco members will be RM13,526.80," he added.

The introduction of the Hope Fund was first announced by Prime Minister Dr Mahathir Mohamad, who said the move was to address the country's challenging financial situation. 

Chow, who is the state DAP chief, said Penang decided to follow Putrajaya's cue to cut salaries after the matter was discussed in the state exco meeting.

He expressed hope that the initiative would at least help reduce the national debt, which Finance Minister Lim Guan Eng said has reached RM1 trillion, as at December last year.

Chow noted that the 10 percent cut would amount to a deduction of RM1,417.51 from his salary, and RM1,210.92 from the state exco's salaries.

Meanwhile, asked if Penang would carry our similar moves in cutting mega-projects like Singapore to Kuala Lumpur High-Speed Railway (HSR) and the MRT3, he said he would respond to the matter in due course.

During the press conference, national shuttlers Lee Chong Wei and Chan Peng Soon received a total of RM31,800 incentives from the Penang government over their achievements during Commonwealth Games in Gold Coast, Australia last month.

Chow handed over RM26,400 to Lee for winning a gold medal in the single event and a silver medal for the team event.

Chan received RM5,400 for a bronze medal in the mixed-doubles and a silver medal for the team.

Also present at the press conference was state Youth and Sports exco Soon Lip Chee.