Anwar Affirms Federal Funding for Malaysian States

Malaysian Prime Minister Datuk Seri Anwar Ibrahim has asserted that nearly every state benefits from federal development funding exceeding its tax contributions, with the exception of Selangor and Penang, which have allocations that closely align with their tax revenues due to their robust economic output.

Funding Based on Development Requirements

In a session of Prime Minister's Question Time in Parliament on Tuesday, Anwar countered claims that the federal government shows favoritism to specific states. He clarified that development funding is allocated based on the distinct needs of each state rather than political affiliations or which party governs.

Selangor and Penang at the Forefront of Tax Contributions

He detailed that Selangor averaged RM43.6 billion in tax revenues from 2023 to 2025, receiving RM15 billion for development projects. During the same timeframe, Penang contributed RM10.7 billion in taxes and benefited from RM7.9 billion in federal spending.

Opposition States Receive Exceeding Federal Allocations

The Prime Minister also pointed out that various opposition-led states receive considerable federal funding compared to their tax contributions. For instance, Kelantan generated RM946 million in taxes but received RM8.9 billion in federal assistance. Kedah contributed RM3.7 billion and secured RM9.5 billion, while Terengganu, collecting RM2.4 billion (including oil revenue), received RM7.8 billion for development.

Federal Assistance to Other Regions

Anwar reported other state figures, noting that Perlis contributed RM419 million in tax but received RM2.2 billion from the federal government. Johor, on the other hand, generated RM14 billion in tax and attracted RM16 billion in federal development funding in the same period.

Emphasis on National Development Goals

He underscored that the heightened federal funding aims to bolster infrastructure, alleviate poverty, enhance educational facilities, and assist underprivileged communities throughout Malaysia. Anwar emphasized that the funding strategy is rooted in national development priorities and the welfare of the public rather than political motives.