Federal Allocations Based on Need, Not Politics, Says Malaysian PM

Prime Minister Datuk Seri Anwar Ibrahim asserted that the federal government's allocation of funds to states is determined by development and the welfare of the people, with a particular focus on urgent needs such as poverty eradication, infrastructure upgrades, and the provision of basic facilities for the poor and marginalized communities.

Speaking in the Dewan Rakyat, Ibrahim pointed out that states like Kedah, Terengganu, and Kelantan have received significantly higher allocations compared to previous periods. He cited specific projects, including flood mitigation efforts and upgrades to the Pan Borneo Highway in Sabah and Sarawak, as examples of the government's commitment. For instance, he noted that while Kelantan's average revenue from 2023 to 2025 was RM946 million, the federal government's expenditure in the state for the same period reached RM8.9 billion.

Similarly, Terengganu's federal expenditure stood at RM7.8 billion against a revenue of RM2.4 billion (including RM1.2 billion from petroleum). Perlis received RM2.2 billion in expenditure against RM419 million in revenue, while Johor, contributing around RM14 billion in revenue, received RM16 billion in allocations. Ibrahim stressed that all states have seen an increase in their allocations.

Ibrahim made these remarks in response to a question regarding allegations of unfair and insufficient federal allocations to states compared to their collected revenue. He refuted claims that certain states were being neglected or sidelined, stating that such accusations are baseless. He emphasized that the Madani government prioritizes states needing special attention and that the allocation decisions are based on development needs and public welfare, aiming to dispel any 'slander and baseless accusations.'