KUALA LUMPUR, February 24 — Chow Kon Yeow (P.046 Batu Kawan) today voiced support for the Rang Undang-Undang Pemberian Mengikut Bilangan Orang 2026 in the Dewan Rakyat but urged a review of its revised capitation grant formula.
Arguing it disproportionately benefits smaller states while offering marginal returns to larger contributors such as Penang. In debating amendments to the Federal Constitution of Malaysia, he noted that while the first 100,000 residents receive RM102 per person.
Allocations drop to between RM13 and RM14 thereafter, despite Penang generating an estimated RM20 billion annually in federal revenue. Chow said the population-based model fails to account for GDP contribution, tax generation, export intensity and urban infrastructure pressures,
Calling for a more dynamic, performance-linked formula to strengthen fiscal equity and ensure sustainable revenue-sharing between the federal and state governments.
