GEORGE TOWN, May 31 – Penang Chief Minister Chow Kon Yeow aims to propose that the federal government return a percentage of taxes collected from each state at the upcoming meeting of chief ministers and menteri besar in July. This initiative, which he will first discuss with the state exco, seeks to introduce fiscal decentralization in Malaysia, a concept not currently provided for in the Federal Constitution. Chow emphasized that this revenue-sharing policy would benefit all states, not just Penang, and could be enacted through a decision by the prime minister.
Acknowledging the federal government’s financial challenges and its efforts to attract foreign investments through tax exemptions, Chow suggested returning 20 percent of the approximately RM8 billion collected annually from Penang. Despite the potential obstacles, including the country’s significant debt levels, Chow remains committed to advocating for this policy. He also noted that Penang’s finances are stable, with a current surplus of RM23.53 million, although the state budget projected a deficit due to welfare commitments and public projects.
