Penang: Penang has proposed the establishment of a special national commission to review the revenue-sharing model between the Federal and state governments. Chief Minister Chow Kon Yeow stated that this is an essential requirement to ensure fiscal justice and long-term development sustainability.

According to BERNAMA News Agency, Chow emphasized that the establishment of a special commission is the best mechanism to transparently reassess the existing formula based on clear agreements, not just for Penang but for the equity of all states. He addressed this during the state assembly sitting in response to a question from Goh Choon Aik (PH-Bukit Tambun) regarding the progress of Penang's claim for 20 percent of its tax revenue.

Chow highlighted that, based on data from the Malaysian Investment Development Authority (MIDA), Penang's manufacturing sector investments amounted to RM17.3 billion in 2024. As of June this year, the state has already recorded RM12.5 billion in investments.

Responding to a supplementary question from Goh on whether the claim would weaken the Federal government, Chow indicated that their fiscal relationship should be viewed as a mutually reinforcing endeavour. He explained that it is about achieving a balance between the revenue generated by the state and local development needs.

Chow also noted the more open approach of the current administration under Prime Minister Datuk Seri Anwar Ibrahim, which has successfully realised several matters under the Malaysia Agreement 1963 (MA63). He expressed optimism that if MA63 can be realised, other issues, including revenue sharing, can be considered with a more open attitude.