By DayakDaily Team
KUCHING, June 30: Almost all states, including Sarawak and Sabah, receive higher federal allocations compared to the tax revenue they contribute, with the exception of Selangor and Penang, said Prime Minister Datuk Seri Anwar Ibrahim, dismissing claims that any state is being sidelined by the federal government.
In a TVS news, Anwar stressed that allegations of unfair treatment are unfounded, noting that the government under his administration has provided among the highest levels of state funding compared to previous governments.
According to him, Selangor and Penang stand out due to their strong economic positions, contributing significantly higher tax revenues than the federal expenditure they receive.
“For the period 2023 to 2025, the average tax revenue collected from Selangor is RM43.6 billion, while federal expenditure in the state amounts to RM15 billion,” he said in the Dewan Rakyat today.
“For Penang, the average tax revenue contributed is RM10.7 billion, while federal allocation is RM7.9 billion,” he told the Dewan Rakyat today.
He was responding to a question from Dato Sri Doris Sophia Brodie (GPS–Sri Aman), who sought clarification on claims that federal allocations to state governments are unfair and insufficient relative to the revenue collected.
Anwar, who is also Finance Minister, said the government prioritises states requiring special attention, particularly for flood mitigation projects, highway and road upgrades, development in Sabah and Sarawak, as well as essential infrastructure such as water supply systems, drainage networks, and road junction improvements.
He added that allocation decisions are guided by urgent needs on the ground, including poverty eradication, infrastructure upgrading, school construction, and the provision of basic amenities, especially for low-income and marginalised communities.
The federal government has also strengthened various forms of support to states, including the Ecological Fiscal Transfer (EFT), matching grants, and per capita grants.
“I hope that with this explanation, there will be no further claims that certain states are being neglected or sidelined,” he said, adding that under the Madani government, allocations to states such as Kedah, Terengganu and Kelantan are among the highest compared to previous administrations. — DayakDaily
