KUALA LUMPUR, August 26 — The federal government ensures fair redistribution of tax revenue to all states through annual grants and development projects, Deputy Finance Minister Lim Hui Ying told the Dewan Rakyat today.
She cited nationwide projects such as the Pan Borneo Highway, Central Spine Road, and the Gemas-Johor Bahru Double Track Railway as examples of how funds are channeled to support state development, welfare, and infrastructure.
Lim said Penang has been allocated RM2.5 billion in 2025 for major projects, including the RM16.82 billion Mutiara Line LRT, the RM1.2 billion Mengkuang Dam Expansion, and the RM667 million Mak Mandin sewerage upgrade.
She added that federal grants to Penang rose to RM360 million this year, with RM225 million earmarked for road maintenance under MARRIS. She stressed that allocations are calculated fairly in line with the Federal Constitution, laws, and National Finance Council decisions, ensuring no state is marginalised.
