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Lim Guan Eng Demands RM2.8 Billion Shortfall Repayment From Federal Government

Lim Guan Eng Demands RM2.8 Billion Shortfall Repayment From Federal Government

Source: Penang Today

DAP national adviser Lim Guan Eng has called on Prime Minister Datuk Seri Anwar Ibrahim to return a RM2.8 billion shortfall in federal allocations to Penang and overhaul the funding formula to treat states more fairly.

In a statement on 1 JULY, the Bagan MP said Penang received less in federal allocations than it contributed to the federal government between 2023 and 2025, citing figures disclosed by Anwar in Parliament.

“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’s allocations of RM2.8 billion from 2023-2025 as compared to Penang’s contributions to stop Penangites from being shortchanged,” he said.

According to figures cited by Lim, Selangor contributed an average of RM43.6 billion over the period and received RM15 billion in allocations. Johor contributed RM14 billion and received RM16 billion.

Penang contributed RM10.7 billion but received RM7.9 billion, while Kedah contributed RM3.7 billion and received RM9.5 billion.

Lim said Selangor and Penang were the only two states that received less than they contributed to the federal government during the period.

“There is no justification for Penang to receive less than Kedah when Penang contributes much more to the federal government,” he said.

He called on the federal government to immediately make good the RM2.8 billion difference, arguing that Penang’s residents should not be disadvantaged despite the state’s contribution to the national economy.

Lim 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 from 2023-2025,” he said.

He warned that failing 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.”

Penang Chief Minister Chow Kon Yeow also called for a fairer return of federal revenue, but stressed that the state was “not seeking special treatment, but equitable revenue distribution based on its actual contribution to national development.”

Welcoming Anwar’s disclosure of state contribution and allocation figures in Parliament, Chow said the data confirmed Penang’s role as “one of the country’s main engines of economic growth” and a net contributor to federal revenue.

Source: Malay Mail

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