GEORGE TOWN, June 25 — The Penang state government’s proposal to revise the federal tax distribution system to benefit the states has hit a setback due to fiscal constraints, according to Penang Chief Minister Chow Kon Yeow. Deputy Finance Minister II Datuk Seri Amir Hamzah Azizan informed Chow that the proposed 20 per cent tax redistribution to Penang is currently unfeasible.
During a press conference at his office in Komtar, Chow highlighted discussions with Amir Hamzah, noting that while the Ministry of Finance acknowledged the state’s need for more funds, it suggested other mechanisms such as grants to support state development. Chow emphasized the importance of additional funding for projects like the integrated circuit (IC) design park and a chip design academy in Penang, seeking federal matching grants to bolster the state’s semiconductor ecosystem and infrastructure initiatives like the Juru-Sungai Dua Elevated Highway project.
