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Post by : Shakul
Malaysian Prime Minister Datuk Seri Anwar Ibrahim has said that almost every state in the country receives more in federal development funding than the amount of tax it contributes. He noted that only Selangor and Penang receive development allocations that are relatively closer to the tax revenue they generate due to their strong economic contributions.
Allocation Based on Development Needs
Speaking during Prime Minister's Question Time in Parliament on Tuesday, Anwar dismissed allegations that the federal government favours certain states. He said development allocations are determined by the needs of each state and are not influenced by political affiliations or the party governing the state.
Read Also: PM Anwar Returns Home Before Aidiladha
Selangor and Penang Lead in Tax Contribution
Anwar stated that Selangor generated an average of RM43.6 billion in tax revenue between 2023 and 2025, while the federal government allocated RM15 billion for development projects in the state. During the same period, Penang contributed RM10.7 billion in tax revenue and received RM7.9 billion in federal expenditure.
Opposition States Receive Higher Federal Spending
The Prime Minister highlighted that several opposition-governed states receive significantly more federal funding than the taxes they contribute. Kelantan generated RM946 million in tax revenue but received RM8.9 billion in federal expenditure. Kedah contributed RM3.7 billion and received RM9.5 billion, while Terengganu contributed RM2.4 billion, including oil revenue, and received RM7.8 billion in development funding.
Federal Support for Other States
Anwar also shared figures for other states, saying Perlis contributed RM419 million in tax revenue while receiving RM2.2 billion in federal expenditure. Johor generated RM14 billion in tax collections and obtained RM16 billion in federal development allocations during the same period.
Focus on National Development Priorities
The Prime Minister said the increased federal funding is aimed at improving infrastructure, reducing poverty, upgrading schools, and supporting underserved communities across Malaysia. He stressed that the government's allocation strategy is guided by national development priorities and public welfare rather than political considerations.
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