Kuala lumpur: The federal government is urged to thoroughly study the proposal to establish a Federal-State Grant Commission, as it could have a positive impact on the country’s overall development. Penang Chief Minister Chow Kon Yeow emphasized the significance of this proposal, highlighting the potential benefits for all states in Malaysia.

According to BERNAMA News Agency, Chow, who is also a Member of Parliament for Batu Kawan, expressed Penang’s commitment to contributing tax revenue from the industrial, tourism, housing, and property sectors for the country’s benefit. He stated that a state with strong financial resources could significantly contribute to the nation’s development. Chow proposed that Penang, which generates billions in revenue for the federal government, should receive a fair share of 20 percent, with the possibility of reviewing this percentage over time.

Furthermore, Chow suggested the establishment of the Penang International Financial Centre, a special economic and financial hub aimed at boosting long-term economic growth for both the state and the country. He emphasized the need for economic diversification to avoid over-reliance on the electrical and electronics, and tourism industries.

Meanwhile, Datuk Seri Wee Ka Siong from Ayer Hitam expressed hope for prudent use of government-linked company (GLC) and government-linked investment company (GLIC) funds in Budget 2026. He stressed the importance of these entities in strategic investments and long-term returns for the people, urging careful monitoring to ensure their alignment with the country’s development agenda.

Wee also called for fiscal policies that support the people, implemented efficiently and responsibly with a long-term perspective. He advocated for fiscal transparency, accountability, and structural reforms rather than relying on new taxes, subsidy cuts, or leveraging GLC and GLIC funds.