Guan Eng urges Anwar to return RM2.8b, says Penangites must not be shortchanged

Former Penang chief minister Lim Guan Eng has called on Prime Minister Anwar Ibrahim to immediately return the state’s RM2.8 billion shortfall in federal allocations between 2023 and 2025 to prevent “Penangites from being shortchanged”.

The DAP adviser said the move would be to reciprocate Penang’s 1.8 million people’s strong support for Anwar and the Madani government.

“Failure to do so would create a sense of grievance amongst Penangites that their support for Anwar and the unity government is not appreciated and taken for granted,” he said in a statement.

Lim was responding to Anwar’s disclosure in Parliament of the average contributions of peninsula states to the federal government, and the allocations returned to them from 2023 to 2025.

According to the prime minister, Penang contributed RM10.7 billion and received RM7.9 billion, while Selangor contributed RM43.6 billion and received RM15 billion, Johor contributed RM14 billion and received RM16 billion, and Kedah contributed RM3.7 billion and received RM9.5 billion.

Lim noted that both Selangor and Penang received less than their financial contributions to the federal government.

“Even Kedah, despite being an opposition-controlled state, received RM9.5 billion - more than Penang’s RM7.9 billion - despite contributing only RM3.7 billion.

“There is no justification for Penang to receive less than Kedah when Penang contributes much more to the federal government,” he added.

Lim urged Anwar to work out a “justice for all” formula to ensure Penang is not shortchanged compared to other states in future allocations.

Chow echoes call for fairer returns

Lim’s successor, Chief Minister Chow Kon Yeow, also said Penang deserves a fairer revenue return.

He said the prime minister’s remarks confirm Penang’s role as a key driver of the country’s economic growth and a net contributor to federal revenue.

“(Anwar’s) statement also confirms what I have raised many times in various national and Dewan Rakyat meetings before, that Penang deserves to receive a fairer revenue return commensurate with its contribution to the national economy.

“What the state government is fighting for is not to get special treatment but to ensure that the revenue return is made fairly, based on the state’s actual contribution to national development,” he was quoted as saying by Bernama.

As a state at the heart of Malaysia’s manufacturing, trade, technology, and innovation sectors, Chow said Penang requires continuous investment to strengthen strategic infrastructure and maintain the nation’s global competitiveness.

Yesterday, Anwar told the Dewan Rakyat that almost all states received higher federal allocations than the tax revenue they contributed, except Selangor and Penang.

Chow also acknowledged the federal government’s approval and funding of major infrastructure projects since 2023, including the Light Rail Transit Mutiara Line, the expansion of the Penang International Airport, and the Juru–Sungai Dua Traffic Dispersion Project.

He added that he appreciated Anwar’s disclosure of revenue collection and federal expenditure figures in Parliament, saying it reflected the Madani government’s commitment to transparency, accountability, and good governance.

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