Penang: The Penang state government hopes the federal government will consider sharing tax revenue to support the state’s development and social welfare programmes, especially considering the implementation of the revised and expanded Sales and Services Tax (SST) on July 1.

According to BERNAMA News Agency, Chief Minister Chow Kon Yeow said he had taken the initiative last year to request a 20 per cent share of tax revenue collected within Penang, but the proposal was neither approved nor taken up by the federal government. He emphasized the need for federal approval and allocations for infrastructure projects, along with funding for other state-related projects and welfare programmes. Chow proposed that if 20 per cent is a burden, starting with 10 per cent could be considered and highlighted the importance of serious consideration from the federal government.

Chow noted the constraints faced by every state in securing sufficient revenue for operations and mentioned his consideration of lobbying other Menteri Besar and Chief Ministers to raise this matter collectively. Despite external uncertainties, including global tariff issues, Penang remains optimistic about its investment prospects in the short- to medium-term.

In the first quarter of 2025, Penang secured RM6.7 billion in approved manufacturing investments, accounting for 22 per cent of Malaysia’s total and positioning Penang as the second-highest contributor among all states. These investments, from 36 approved manufacturing projects, are expected to create 4,577 new job opportunities, reinforcing Penang’s status as an economic powerhouse.

Significantly, 90 per cent of the total investment, amounting to RM6.1 billion, came from foreign direct investments, reaffirming Penang’s position as a global hub for advanced manufacturing and innovation. The breakdown of investments reflected the state’s industrial strengths, with a majority directed to the electrical and electronics sector, followed by machinery and equipment. The United States led foreign investments, followed by Hong Kong and Taiwan.

Looking ahead, Chow stated Penang’s commitment to expanding economic opportunities by fostering innovation, empowering the workforce, and building a resilient ecosystem to attract high-impact, transformative investments.