Anwar and TMJ close ranks after Johor revenue dispute

Prime Minister Anwar Ibrahim and Johor Regent Tunku Ismail Sultan Ibrahim have sought to draw a line after the recent row over Johor’s contribution to the national coffers.

The exchange stemmed from remarks by Tunku Ismail, who had in a recent podcast show, argued that Johor contributes substantial tax revenue to the federal government, but receives only a pittance in return.

In a statement today, Anwar said he met Tunku Ismail "in a cordial and harmonious atmosphere" in Kuala Lumpur, and that the meeting provided a good opportunity for them both to exchange views and discuss matters concerning the welfare and well-being of the people, particularly in Johor.

"We also discussed current developments and the Madani government’s ongoing plans to drive economic growth and the state’s development.

"Tunku Ismail and I also agreed to continue maintaining good relations, while further strengthening the close cooperation between the federal government and the Johor state government," Anwar said.

Tunku Ismail also took to his X account to announce the cordial meeting with Anwar.

"Another day at the office. Thank you to the prime minister for his concern and commitment towards the close relationship between the federal government and the state of Johor.

"I also exchanged views with the prime minister on the need for the federal government to remain steadfast in its commitment to the development of Johor, for the well-being and prosperity of the people of Johor," he added.

Less than 10pct received

Tunku Ismail, also known as TMJ, lamented that the state generated more than RM40 billion for the federal government but received less than 10 percent back.

He then reiterated previous calls for the government to give at least a quarter of federal revenue back to states.

"We contribute (to the federal government) our state revenue of more than RM40 billion a year, and only RM2 billion to RM3 billion is returned to take care of 4.9 million Johor residents - how (does that make sense)?

"That is illogical," he was quoted as saying by Sinar Harian.

His remarks were in response to Anwar, who, during a Pakatan Harapan ceramah last week, said that the state was rich, but there were many leakages due to corruption.

Harapan leaders push back on TMJ’s claims

Tunku Ismail's initial statement in response to Anwar was also met with rebuttals from Harapan representatives.

In a statement on Facebook yesterday, Pasir Gudang MP Hassan Abdul Karim stressed that the government is guided by law and the Federal Constitution in all matters relating to the distribution of federal funds to states, including Johor.

He cited Article 109(1) of the Federal Constitution, which requires the federal government to provide each state annually with a capitation grant.

He also referred to Article 110(1), which states that each state is entitled to receive all revenues from taxes, fees and other income sources.

READ MORE: Follow Constitution, Putrajaya says as states seek more rights

Hassan said that if any state government is dissatisfied with federal financial allocations, the issue can be referred to the National Finance Council, and under Article 108(4) the federal government is obliged to consult the Council regarding such grants.

Earlier today, Amanah Youth vice-chief Ammar Atan rejected claims that Putrajaya returned only between RM2 billion and RM3 billion to Johor, saying such assertions do not reflect the actual situation.

He pointed to the state's position as Malaysia’s second-largest exporter in 2025 and its record achievement as the country’s biggest recipient of approved investments that year.

Ammar said the federal government has continued to fund major infrastructure and public development projects in Johor, including schools, hospitals, roads and basic amenities.

He noted that Putrajaya fully finances the Johor Bahru-Singapore Rapid Transit System (RTS) Link and the Gemas-Johor Bahru Electrified Double Track railway.

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