GEORGE TOWN — Penang Chief Minister Chow Kon Yeow has reiterated that Penang should be getting more in federal grants given its contribution to the national economy as a tech manufacturing hub and its role as a top contributor to the national coffers.
In an exclusive interview with Scoop, Chow, who is in the middle of his second and last term as the state’s top executive, revealed that he has been grappling with Putrajaya’s perception that Penang, being developed, does not need more federal assistance.
“Why (is Penang) asking for more when (it) is already developed? Let the poorer states catch up with development — that has been the federal government’s perception (of Penang),” he told Scoop in the interview held in his office at Komtar, here.
“The federal government, for whatever reason whether it is perception or otherwise, has relegated Penang to the bottom in terms of attention and approvals. (It is) not (being) prioritised,” added Chow, the Padang Kota assemblyman who took office as chief minister in 2018. He is also Batu Kawan MP.
Chow said this when asked about challenges he faced in implementing his vision and plans for Penang, which includes the state government’s Penang 2030 policy masterplan to drive economic growth and enhance quality of life for Penangites.
He acknowledged the federal development projects that were approved in the past, such as hospital buildings, police stations, public health clinics and schools, which are all valued close to a billion ringgit.
That being said, he added that the number of projects was fewer when compared with some other states.
And since the Federal Constitution does not provide for more types of capital grants given to a state, Penang has had to rely on road grants and other forms of statutory grants that only generate a few hundred million ringgit, he said.
“Penang is lacking in infrastructure. We are left too far behind because we cannot catch up with (current) industrial and economic developments. The (existing) infrastructure needs to be (improved).
“We (state government) feel that given Penang’s contributions to the national economy, to the national gross development product (GDP), as well as to trade and investment, we need the infrastructure,” Chow said.
Last year, Chow had called upon the federal government to review its allocation to the states, by requesting that 20% of the taxes collected from Penang be allocated to the state government to enhance its development efforts.
For comparison, in 2023, Penang contributed 7.4% of Malaysia’s GDP, coming in as the fifth state with the highest contribution after Selangor (25.9%), the Federal Territory of Kuala Lumpur (15.9%), Johor (9.5%) and Sarawak (9.1%), according to the Statistics Department.
Difficult to be independent
Chow, who has served in the state government since 2008 under predecessor Lim Guan Eng, said Penang has tried to be less dependent “and not to beg the federal government” for grants in the past.
The state attempted this by financing the Penang Transport Master Plan (PTMP) through land sale from the Penang South Islands reclamation project, now ongoing off the southern coast of the island.
“We have tried, but how successful was it? (I think) we all know (the answer),” he added.
In May 2023, the scope of the reclamation project was downsized from three to only one island under an arrangement with Putrajaya where the federal government would fund Penang’s Light Rail Transit (LRT) project.
However, support from the current federal administration is better now, Chow added.
Federal projects in the state have received swifter approvals under the unity government, such as the much-awaited Juru-Sg Dua elevated highway project, which could help in alleviating traffic congestion on Seberang Perai, the chief minister said.
This level of attention from Putrajaya is crucial for Penang as it plans to grow its semiconductor industry, he added.
“I believe that no other federal government has given so much attention to the semiconductor sector until two years ago, when the Madani government took over,” Chow said, noting that it had developed the National Semiconductor Strategy and New Industrial Master Plan 2030.
“I think that is (something) that Penang, as a silicon hub, welcomes for us to leverage more. But still, we think that we should be getting more grants as well,” he said. – February 18, 2025