SHAH ALAM, June 30 - Selangor and Penang are the only states receiving federal government allocations lower than the average revenue they generate, said Prime Minister Datuk Seri Anwar Ibrahim today.
Speaking during Minister’s Question Time in the Dewan Rakyat, Anwar said allocations are based on development needs and the people’s welfare, not just taxes collected from each state.
He also dismissed claims that development funding is distributed unfairly among more marginalised states.
“All states receive higher allocations than before and more than their average tax revenue, except Selangor and Penang.
“Selangor and Penang, due to their strategic positions, generate high revenue, (so) the federal development (fund) they receive is comparatively lower,” he said in response to Datuk Seri Doris Sophia Brodi’s (GPS-Sri Aman) question about claims of unfair or insufficient federal funds for state governments.
Anwar added that Selangor’s average 2023-2025 tax revenue was RM43.6 billion, compared with the RM15 billion federal allocation it received.
He said Penang contributed RM10.7 billion, with federal funds of RM7.9 billion.
Anwar also said the agreement between the federal and Sarawak governments on port management was a historic achievement thanks to negotiations that respected the Federal Constitution.
He said that when the deal was signed for Putrajaya to hand over port management rights to the Sarawak government, the state administration paid RM1.8 billion in cash to the federal government.
“This (goes down) in history because it is the first time a state government has handed over a cash cheque to the federal government as a result of negotiations that were conducted well and respected the rights of both parties,” he added.
Anwar also said the government will maintain its just, diplomatic approach to ensure that no state is left behind.
“I hope this explanation can extinguish the accusations and slander that certain states are being marginalised or underfunded.
“The fact is, the government provides allocations based on people and state development needs,” Anwar said.
