DAP national adviser Lim Guan Eng has called on Prime Minister Datuk Seri Anwar Ibrahim to return what he described as a RM2.8 billion shortfall in federal allocations to Penang, while also proposing a new funding formula to ensure more equitable distribution among states.
In a statement, the Bagan MP said Penang had received less federal allocation than its contribution to the federal government between 2023 and 2025, based on figures previously disclosed by Anwar in Parliament.
“Prime Minister Datuk Seri Anwar Ibrahim should work out a justice for all formula in compliance with the constitutional right of equality before the law, to immediately return Penang’s shortfall in Federal Government’s allocations of RM2.8 billion from 2023-2025 as compared to Penang’s contributions to stop Penangites from being shortchanged,” he said.
Based on the figures cited by Lim, Selangor contributed an average of RM43.6 billion over the period while receiving RM15 billion in allocations. Johor contributed RM14 billion and received RM16 billion in return.
He added that Penang contributed RM10.7 billion but received RM7.9 billion, while Kedah contributed RM3.7 billion and received RM9.5 billion.
Lim said Selangor and Penang were the only two states that received less than what they contributed to federal revenue during the period.
“There is no justification for Penang to receive less than Kedah when Penang contributes much more to the federal government,” he said.
He urged Putrajaya to immediately address the RM2.8 billion gap, stressing that Penang residents should not be disadvantaged despite the state’s strong economic contribution.
Lim also framed the issue in political terms, saying Penang’s support for the unity government should be acknowledged and reciprocated.
“To reciprocate Penang’s 1.8 million people’s strong support for the Prime Minister and the unity government, Anwar should immediately return the shortfall of RM2.8 billion over the three-year period from 2023-2025,” he said.
He warned that failure to do so could create dissatisfaction among Penang residents, who may feel their support for the government is not being recognised.
Lim further urged the federal government to establish a “fair for all” funding formula to prevent future disparities in state allocations.
Earlier, Penang Chief Minister Chow Kon Yeow also called for a fairer distribution of federal revenue, while stressing that the state was not seeking special treatment but a more equitable system based on its economic contribution.
Chow welcomed the Prime Minister’s disclosure of state revenue and allocation figures in Parliament, saying it highlighted Penang’s role as one of the country’s key economic engines and a net contributor to federal revenue.
He also expressed appreciation for federal support for major infrastructure projects in the state, including the Mutiara Line LRT, Penang International Airport expansion and flood mitigation initiatives.
