Set Up Federal-State Grant commission To Spur Development -- Chow

KUALA LUMPUR, Oct 15 (Bernama) -- The federal government is urged to thoroughly study the proposal to establish a Federal-State Grant Commission, as it could have a positive impact on the country's overall development.

Penang Chief Minister Chow Kon Yeow said the establishment of a special commission warrants attention, as it could bring benefits to all states in Malaysia.

Chow, who is also a Member of Parliament (PH-Batu Kawan), said Penang is committed to offering tax revenue from the industrial, tourism, housing, and property sectors for the country.

“This matter is worthy of discussion as logically, if a state has strong financial resources, it will continue to be able to contribute and have a positive impact on the development of the country as a whole. 

“Of the billions in revenue that Penang contributes to the federal government, we only expect a share of 20 per cent or rightly, as this percentage can also be reviewed in stages at an appropriate rate,” he said during the debate on the Supply Bill 2026 in the Dewan Rakyat today.

Chow said the state government has also suggested establishing a special economic and financial centre, namely the Penang International Financial Centre, to continuously boost the state and the country’s long-term economic growth.

“We need an economic catalyst so that we do not remain stagnant as a state based solely on the electrical and electronics, and tourism industries,” he added.

Meanwhile, Datuk Seri Wee Ka Siong (BN-Ayer Hitam) hoped that the use of government-linked company (GLC) and government-linked investment company (GLIC) funds in Budget 2026 would be implemented prudently in line with the original role of the entities. 

He said that GLCs and GLICs play an important role in the country’s strategic investments, providing long-term returns to the people.

Hence, he said, the use of these entities’ funds must be monitored to ensure that they do not compromise their ability to support the country’s development agenda. 

Wee also urged the government to ensure that fiscal policies continue to support the people and are implemented efficiently and responsibly, supported by a long-term approach.

“A sound fiscal policy must be based on transparency, accountability and the courage to undertake structural reforms, rather than simply shifting burdens through new taxes, subsidy cuts or taking advantage of GLC and GLIC funds,” he said. 

-- BERNAMA