PENANG should be getting a development allocation of RM5.2 billion from the Federal Government next year, says Chief Minister Chow Kon Yeow.
However, the state would likely be receiving only RM0.996 billion in development funding under the Federal 2022 Budget.
Chow said the Federal Government had announced a RM332.1 billion national Budget and RM75.6 billion was apportioned for development expenditure.
“Penang is expected to receive only 1.3% of the total RM75.6 billion allocated for development expenditure.
“Meanwhile, Penang has been contributing to the country’s surpluses.
“The state’s gross domestic product (GDP) was accounted for between 6.7% and 6.9% of the country’s GDP in the recent three years.
“Given our contributions, Penang should be getting a development allocation of RM5.2 billion from the Federal Government,” he replied to M. Satees (PH – Bagan Dalam) at the Penang Legislative Assembly today.
Satees said Penang was often neglected by the Federal Government.
“The Federal Government often said that Penang is a developed state and does not need much allocation.
“This is really unfair when Penang has been contributing so much to the nation.
“We receive unfair development allocation from the Federal Government, and we table a deficit state Budget,” he said.
Chow said that the state government had been constantly arguing with the Federal Government over the unjust allocation to Penang.
“Recently, at the Prime Minister’s meeting with the state leaders on the 12th Malaysia Plan, I have also voiced our dissatisfaction to the Finance Minister and the International Trade and Industry Minister. I told them to also look at Penang.
“For example, we open the new Batu Kawan Industrial Park. However, we still need the allocation to implement infrastructure projects. These infrastructure projects are crucial for land readiness before it can meet investor demand,” he said.
Chow hoped that the Federal Government would be fair to Penangites and allocate more development fund to the state.
Meanwhile, Chow said the Penang government had proposed seven projects to be implemented under the second rolling plan for the 12th Malaysia Plan.
“However, the status of the projects is still unknown. We have not received the detailed list of approved projects under the Federal 2022 Budget,” he added.
Story by Christopher Tan