GEORGE TOWN, September 13 — Penang Chief Minister Chow Kon Yeow announced today that the state aims to rebuild its consolidated funds to RM1 billion by 2028, after reserves dwindled from RM1.15 billion in 2019 to just RM155.94 million at the end of 2024.
The sharp decline was attributed to RM1.019 billion spent on social welfare and public transport programmes between 2018 and 2025, including cash aid under the Penang Lawan Covid-19 initiative, subsidies for buses and ferries, and incentives for taxi drivers, fishermen, trishaw riders, and teachers of supplementary Islamic classes.
Chow said that while welfare support has not been cut, the state has tightened expenditure since last year and is looking to boost revenue through measures such as an upcoming review of assessment rates. He noted that Penang tabled its lowest-ever deficit budget of RM33 million for 2025 and is optimistic about reducing it to single digits or achieving a surplus.
As of May 21 this year, reserves had improved to RM235.55 million, and Chow expressed confidence that consistent surpluses could restore the state’s consolidated funds to RM1 billion within three years.
