Kuala lumpur: Prime Minister Datuk Seri Anwar Ibrahim stressed that almost all states received higher allocations from the federal government compared to their tax revenue contributions, except for Selangor and Penang, which recorded higher revenue collection.

According to BERNAMA News Agency, Anwar explained that the allocations were made based on development needs and the well-being of the people, thus rejecting claims that certain states were being ignored or marginalised. He emphasized that the government determined the allocations based on urgent needs in each state, including flood mitigation projects, upgrading the Pan Borneo highway and new roads, water drainage systems, poverty eradication, and the development of schools and other infrastructure facilities.

During the Ministerial Question Time session at the Dewan Rakyat, Anwar responded to a query from Datuk Seri Doris Sophia Brodi (GPS-Sri Aman) regarding allegations of unfair and insufficient federal allocations compared to state revenue contributions. He highlighted that the MADANI Government had provided the highest allocations for states such as Kedah, Terengganu, and Kelantan, compared to previous administrations.

Anwar detailed that from 2023 to 2025, Selangor contributed RM43.6 billion in tax revenue to the federal government, while federal expenditure in the state amounted to RM15 billion. For Penang, the average revenue contributed was RM10.7 billion, with an expenditure of RM7.9 billion. In other states, federal expenditure significantly exceeded tax revenue contributions. Kelantan, for example, recorded an average revenue of RM946 million with federal expenditure reaching RM8.9 billion, and Kedah recorded a revenue of RM3.7 billion with an expenditure of RM9.5 billion. In Terengganu, the revenue, including petroleum revenue, was about RM2 billion, while the federal expenditure amounted to RM7.8 billion. Johor recorded a revenue of about RM14 billion with a federal expenditure of RM16 billion.

In response to Doris Sophia's supplementary question on the special grant to Sarawak, Anwar mentioned that negotiations were ongoing in line with the Malaysia Agreement 1963 (MA63). He noted that during recent meetings with Sarawak Premier Tan Sri Abang Johari Tun Openg in Bintulu and Kuching, the government prioritized resolving issues related to the handover of Bintulu Port to the Sarawak government and the payment of RM1.8 billion by Sarawak to the federal government, a development he described as unprecedented.

Anwar assured that negotiations were continuing and that an increase in the special grant should be granted based on the spirit of MA63, with approval expected soon. He highlighted the handover of Bintulu Port to the Sarawak government as a milestone, marking the first time in history that a solution was achieved through negotiations recognizing the state's rights under the Constitution. This development, according to Anwar, signifies the importance of conducting constructive and healthy negotiations.