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SHAH ALAM – DAP national adviser Lim Guan Eng has urged Prime Minister Datuk Seri Anwar Ibrahim to immediately address what he described as a RM2.8 billion shortfall in federal allocations to Penang and introduce a fairer formula for distributing funds to states.
The Bagan MP said Penang had received significantly less in federal allocations than it contributed to the federal government between 2023 and 2025, citing figures disclosed by Anwar in Parliament on Wednesday.
According to the figures, Selangor contributed an average of RM43.6 billion to the federal government and received RM15 billion in allocations, while Johor contributed RM14 billion and received RM16 billion.
Penang, meanwhile, contributed RM10.7 billion but received only RM7.9 billion in allocations, while Kedah contributed RM3.7 billion and received RM9.5 billion.
Lim noted that Penang and Selangor were the only two states that received less than the amount they contributed to the federal government during the three-year period.
"There is no justification for Penang to receive less than Kedah when Penang contributes much more to the federal government," he said in a statement on Thursday.
He called on the federal government to immediately return the RM2.8 billion difference, arguing that Penangites should not be disadvantaged despite the state's significant contribution to the national economy.
Lim also urged the government to adopt what he described as a "justice for all" formula in line with the constitutional principle of equality before the law to ensure a fairer distribution of allocations among states in the future.
"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 allocations from 2023 to 2025 to stop Penangites from being shortchanged," he said.
The former finance minister also framed the issue in political terms, saying Penang's support for the unity government should be recognised.
"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.
"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.
Meanwhile, Penang Chief Minister Chow Kon Yeow also called for a fairer return of federal revenue, stressing that the state was "not seeking special treatment, but equitable revenue distribution based on its actual contribution to national development".
He said the figures presented in Parliament reaffirmed Penang's position as one of the country's key economic drivers and a net contributor to federal revenue.
Earlier, Anwar had dismissed allegations that the federal government distributes development allocations unfairly among states, telling the Dewan Rakyat that nearly every state, except Selangor and Penang, received allocations exceeding the amount of tax revenue they contributed to the federal government.
