GEORGE TOWN, Oct 30 — Penang Chief Minister Chow Kon Yeow today tabled a RM1.074 billion budget for 2027, with a projected deficit of RM5.62 million.
He said the estimated deficit was the lowest in the state’s budget history, compared to the projected deficit of RM19.92 million for 2026.
The state’s estimated revenue for 2027 is RM1.069 billion, an increase of RM800,000 or 0.07 per cent compared to 2026.
The size of the 2027 operating budget is RM13.49 million, or 1.24 per cent, lower than the 2026 budget of RM1.088 billion.
“Taking into account the estimated state revenue of RM1.069 billion compared to the estimated expenditure of RM1.074 billion, Budget 2027 records the lowest estimated deficit in Penang’s budget history, at RM5.62 million,” Chow said when tabling the Supply Bill at the state legislative assembly today.
He said the budget included a contribution of RM240 million to the state development fund, compared to RM265 million in 2026.
The state has approved RM280.17 million for development expenditure in 2027, a reduction of RM38.4 million or 12.1 per cent from the previous year.
Chow said 514 development projects had been listed for implementation next year, covering public infrastructure, community facilities, sports development and strategic economic projects.
“Among the main priorities are projects to strengthen the state’s transport network and connectivity, including land acquisition for the light rail transit project, the Airport Link Road and the route to Silicon Island, as well as Phase Two of Gurney Bay and projects related to the Penang Transport Master Plan,” he said.
The chief minister said the state would continue its i-Sejahtera programme with an allocation of RM58 million for 2027.
He also announced a new Mempelai Emas programme under i-Sejahtera, offering a one-off contribution of RM500 to eligible newly married couples in Penang.
As at September 30 this year, the state had disbursed RM57.8 million through the first two phases of i-Sejahtera, benefiting 299,504 recipients, including senior citizens, persons with disabilities, single mothers and housewives.
Chow also announced that the state would maintain its 50 per cent quit rent rebate in 2027, subject to the relevant conditions.
He said quit rent collection reached RM167.59 million as at October 29, compared to RM116.05 million in 2025, an increase of RM51.54 million or 44.41 per cent.
The increase came despite the 50 per cent rebate and reductions approved through landowners’ appeals, which involved a decrease in revenue of almost RM35.7 million, he said.
On the state’s finances, Chow said revenue collection for 2025 rose to RM1.26 billion from RM810.46 million in 2024, while the state recorded a surplus of RM366.93 million compared to a deficit of RM174.09 million in 2024.
He said the balance in the consolidated revenue account rose from RM155.94 million at the end of 2024 to RM522.87 million at the end of 2025, and stood at RM651.28 million as at today.
For the period from January to October 30 this year, the state collected RM847.53 million in revenue, equivalent to 79.35 per cent of its annual estimate.
“The state government will continue to monitor revenue collection and step up follow-up action with collecting departments to ensure the 2026 revenue target of RM1.068 billion can be achieved,” he said.
Chow also announced special financial aid equivalent to one month’s salary for state civil servants.
He said a one-off payment of RM300 each would also be given to eligible religious teachers and staff, as well as teachers and staff of private Chinese schools in Penang.
The special financial aid and one-off payments, totalling RM16.207 million, will benefit 7,292 recipients and will be paid in December 2026.
