GEORGE TOWN, June 24 – Penang Chief Minister Chow Kon Yeow has renewed his call for the federal government to implement a revenue-sharing mechanism for Sales and Services Tax (SST), urging that at least 10% — if not the initially proposed 20% — of taxes collected from the state be returned.
Chow stressed that while federal allocations for infrastructure are welcome, Penang needs greater fiscal autonomy to support critical state-led initiatives, including social welfare programmes and development projects.
He noted that the federal government must recognise Penang’s substantial role in the national economy, especially as the second-highest contributor to approved manufacturing investments in Q1 2025, valued at RM6.7 billion.
Chow highlighted that the state’s financial pressure remains despite its economic performance, with a projected budget deficit exceeding RM100 million. He echoed Penang Federal-State Relations Committee chairman Gooi Hsiao Leung’s recent push for greater fiscal transparency and a review of SST distribution.
On foreign investment, Chow shared optimism over Penang’s sustained appeal to global investors, led by the US, Hong Kong, and Taiwan, though he cautioned that the impact of recent US tariffs may surface in later quarters.
Addressing reports about Intel’s investment pause, Chow confirmed that InvestPenang will meet the company soon to gain clarity on the status of its RM38.5 billion facility.
