GEORGE TOWN, November 15 – Penang Chief Minister Chow Kon Yeow today presented the state’s 2026 budget of RM1.088 billion, marking its lowest deficit yet at RM19.92 million, underpinned by a projected revenue of RM1.068 billion—an increase of RM161.44 million or 17.81% compared to 2025.
The budget, RM147.72 million larger than last year’s RM940.22 million allocation, continues the state’s trend of reducing its deficit for the second consecutive year while supporting high-impact development projects. Chow highlighted that the budget allocates RM265 million to the state development fund, with total development expenditure of RM318.62 million, up 44.83% from 2025.
Key projects include land acquisition for the Mutiara Line LRT, Gurney Bay Phase 2, the Silicon Island development, and various initiatives under the Penang Transport Master Plan, alongside 122 other development projects spanning public infrastructure, amenities, and economic programs.
In addition, the state continues its i-Sejahtera programme with an allocation of RM65 million for 2026, building on RM53.57 million spent as of October 2025 benefiting 287,923 recipients.
Chow also announced one-off special financial aid totaling RM11.49 million, including a minimum of RM1,000 or three-quarters of a month’s salary for all 3,954 civil servants and RM300 incentives for 3,358 teachers and staff in Kafa, religious, and Chinese independent schools, to be disbursed starting next month.
The Chief Minister expressed optimism over revenue collection, noting that as of November 14, 2025, Penang had already recorded RM920.15 million, surpassing the 2025 target and positioning the state to achieve over RM1 billion in total revenue by year-end, last achieved in 2016.
The 2026 budget underscores Penang’s focus on fiscal prudence while driving strategic development initiatives to support sustainable growth.
