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All states receive higher federal allocations except Selangor, Penang, says PM
🇲🇾 Malaysia /Economy & Trade

All states receive higher federal allocations except Selangor, Penang, says PM

From Utusan Malaysia · () Malay

Translated from Malay, summarized and contextualized by DistantNews.

At a glance

News Named sources Context piece
  • Malaysian Prime Minister Anwar Ibrahim stated that all states receive higher federal allocations except Selangor and Penang, as these two states contribute more in taxes than they receive in federal spending.
  • He refuted claims of unfair distribution, explaining that allocations are based on development and welfare needs, citing Selangor and Penang's higher tax revenue compared to federal spending in those states.
  • Anwar highlighted that the government prioritizes states needing special attention and funds crucial projects like flood mitigation and infrastructure upgrades, particularly in Sabah and Sarawak.

Prime Minister Anwar Ibrahim has asserted that federal allocations to Malaysian states have increased, with the exception of Selangor and Penang. He explained that these two states, due to their strategic economic positions, contribute significantly more in taxes than they receive in federal funding.

All states receive higher allocations than before and also higher than the average tax revenue, except Selangor and Penang because by chance their strategic position yields high revenue but federal allocation spending is less.

— Anwar IbrahimPrime Minister Anwar Ibrahim explaining the rationale behind federal budget allocations to states in the Dewan Rakyat.

Addressing concerns in Parliament about perceived unfairness, Anwar stated that the distribution is based on development and welfare needs. He provided figures showing Selangor's average tax revenue between 2023-2025 at RM43.6 billion, with federal spending allocated at RM15 billion. For Penang, the average revenue was RM10.7 billion, with RM7.9 billion in federal spending.

The claims that certain states are neglected or sidelined in the distribution of federal allocations are baseless because the distribution is made based on development and welfare needs of the people.

— Anwar IbrahimPrime Minister Anwar Ibrahim refuting allegations of unfair distribution of federal funds.

"All states receive higher allocations than before and also higher than the average tax revenue, except Selangor and Penang because by chance their strategic position yields high revenue but federal allocation spending is less," Anwar said. He was responding to a question regarding claims of insufficient and unfair federal allocations to state governments compared to collected revenue.

For example, the average tax revenue for Selangor from 2023 to 2025 is RM43.6 billion. What is spent on Selangor during the same period is RM15 billion in federal government allocation.

— Anwar IbrahimPrime Minister Anwar Ibrahim providing specific financial figures for Selangor's allocation.

Anwar also emphasized the government's focus on states requiring special attention. He mentioned prioritizing projects such as flood mitigation, upgrading highways, and new roads like the Pan Borneo Highway in Sabah and Sarawak, as well as essential water infrastructure. This approach aims to ensure funds meet the needs of the people in every state.

For Penang, the average revenue obtained by the federal government for 2023 to 2025 is RM10.7 billion. Spending is RM7.9 billion.

— Anwar IbrahimPrime Minister Anwar Ibrahim providing specific financial figures for Penang's allocation.
DistantNews Editorial

Originally published by Utusan Malaysia in Malay. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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