Penang Proposes Special National Commission To Review Revenue-Sharing Model

GEORGE TOWN, Nov 20 (Bernama) -- Penang has proposed the establishment of a special national commission to review the revenue-sharing model between the Federal and state governments.

Chief Minister Chow Kon Yeow said this is an essential requirement to ensure fiscal justice and long-term development sustainability.

“The establishment of a special commission is the best mechanism to transparently reassess the existing formula based on clear agreements, not just for Penang but for the equity of all states.

“Amid the ongoing debate over revenue sharing, Penang continues to maintain its momentum as a national economic powerhouse, supported by strong investment and export figures for 2024 and 2025,” he said at the state assembly sitting here today.

He was responding to a question from Goh Choon Aik (PH-Bukit Tambun) regarding the progress of Penang’s claim for 20 percent of its tax revenue.  

Chow highlighted that, based on the Malaysian Investment Development Authority (MIDA) data, Penang’s manufacturing sector investments amounted to RM17.3 billion in 2024.

As of June this year, the state has already recorded RM12.5 billion, he added.   

Responding to a supplementary question from Goh on whether the claim would weaken the Federal government, Chow said that their fiscal relationship should be viewed as a mutually reinforcing endeavour.

He explained that it is about achieving a balance between the revenue generated by the state and local development needs.

Chow also praised the more open approach of the current administration under Prime Minister Datuk Seri Anwar Ibrahim, which has successfully realised several matters under the Malaysia Agreement 1963 (MA63).

“In this spirit, if MA63 can be realised, I believe other issues, including revenue sharing, can be considered with a more open attitude,” he said.

-- BERNAMA