GEORGE TOWN, May 26 — Penang Chief Minister Chow Kon Yeow confirmed today that the RM100 million advance received from the federal government in 2023 will be repaid via gradual reductions in state grants between 2027 and 2029. The advance, aimed at addressing the state’s projected deficit, was approved under Article 109(6) of the Federal Constitution and disbursed by the Finance Ministry.
Chow said the offsets would involve deductions from four grants over three years: RM33 million in both 2027 and 2028, and RM34 million in 2029. To strengthen the state’s fiscal position, Chow outlined measures to boost revenue, including recovering RM1 million in rent arrears, reviewing outdated tax rates, reclassifying rural to urban areas, and auctioning high-value government land.
As he nears the end of his second and final term, Chow expressed confidence in leaving behind a financially resilient administration. “I am confident the state’s Consolidated Revenue Account could be restored to RM1 billion when my successor takes over,” he said.
