GEORGE TOWN, November 23 — Penang Chief Minister Chow Kon Yeow has unveiled a RM940.22 million state budget for 2025, marking a historic low deficit of RM33.63 million. This budget reflects a 10.19% reduction in expenditure compared to the RM1.046 billion budget for 2024. Despite the constraints, Chow emphasized the state’s commitment to high-impact projects and socio-economic programs.
The 2025 budget projects a revenue of RM906.59 million, a remarkable 70% increase from 2024’s RM533.08 million target. Chow noted this significant revenue hike underscores the state’s dedication to bolstering financial sustainability. Key revenue contributors include RM223.6 million from taxes, RM570.4 million from non-tax revenue, and RM112.5 million from non-revenue receipts. These efforts aim to mitigate the steady decline of the consolidated funds, which are expected to drop to RM50 million by January 2025 from RM330.03 million at the end of 2023.
Development expenditure for 2025 has been set at RM220 million, down from RM374.7 million in 2024. The allocation will focus on critical initiatives, including the Penang Transport Master Plan, Silicon Island reclamation, and infrastructure surrounding the Penang International Airport expansion. Despite the reduced budget, Chow assured that flagship programs like i-Sejahtera and public transport subsidies will remain intact, supporting the well-being of Penangites.
In recognition of civil servants and educators, the state announced RM6.88 million in special financial assistance. This includes half a month’s salary or a minimum of RM1,000 for 4,022 state civil servants and RM300 each for Kafa teachers, religious school staff, tahfiz teachers, and private Chinese school staff. The aid will be disbursed in December as a gesture of gratitude for their service.
Chief Minister Chow highlighted the budget’s focus on prudent financial management while fostering economic growth and sustainability. “Through meticulous planning, the 2025 budget reflects the state’s steadfast commitment to advancing development and socio-economic progress despite fiscal challenges,” he said at the state legislative assembly.
