KUALA LUMPUR (June 30): Prime Minister Datuk Seri Anwar Ibrahim said nearly all states, except Selangor and Penang, received more federal funds than the tax revenue they contributed to the federal government over the past three years.

Anwar dismissed allegations that the federal government channels allocations to state governments unfairly.

Selangor received an average of RM15 billion a year between 2023 and 2025, while its average tax revenue contribution was RM43.6 billion, Anwar said in Dewan Rakyat on Tuesday.

Penang, meanwhile, contributed an average of RM10.7 billion a year from 2023 to 2025, but only received an average of RM7.9 million a year, he added.

"All states receive allocations that are higher than before and higher than their average tax revenue, except Selangor and Penang.

"Selangor and Penang, because of their strategic position, generate high revenue, but the federal allocation expenditure they receive is relatively lower compared to their average revenue," he said.

On other states: Kelantan had an average tax revenue of RM946 million per year for 2023-2025 but had an expenditure of RM8.9 billion; Terengganu had RM2.2 billion average tax revenue and RM7.8 billion expenditure; Perlis’ expenditure was RM2 billion, while average tax revenue stood at RM419 million.

“Several states require special attention and projects such as flood mitigation, highway upgrades, new drainage systems and water supply systems, which cannot be delayed,” Anwar said.

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