KUALA LUMPUR, Dec 26 — Penang Chief Minister Lim Guan Eng (picture) said today he would be demanding a fairer deal from Putrajaya, after it was revealed that the state contributed RM25.6 billion to federal coffers between 2001 and 2008, but received only RM794 million in federal grants during the period.
In his Christmas message to the state, Lim said the Finance Minister had revealed recently in Parliament in a written reply to him that Penang contributed RM25.670 billion in the form of taxes and customs duties between 2001 and 2008.
"In other words, Penang received back only a shocking three per cent of what it contributed during the 8 years from 2001-2008.
"Even if we were to include federal projects of around RM10 billion during this period, the total amount spent in Penang would amount to at most 40 per cent," he said.
Penang appears to have joined its fellow Pakatan Rakyat (PR) state Kelantan in demanding better treatment from the federal government.
The Kelantan government had recently demanded the federal government pay it oil royalties, but Putrajaya, controlled by Barisan Nasional (BN), has refused.
Instead the BN federal government says it will offer Kota Baru what it terms compassionate payments, because it claims Kelantan is not entitled to oil royalties.
Penang, one of the country's industrial powerhouse states, has found access to funds difficult because its relatively small size means the state government's revenues from property taxes remain low.
Lim said today that the discrepancy between what the state contributes to the federal government and what it gets in return had resulted in the state being left out of the development mainstream.
"Even Singapore’s Minister Mentor Lee Kuan Yew made the observation that Penang was developing slower compared to other towns such as Ipoh or Seremban," he said in reference to remarks made by Lee when the Singapore leader visited the state earlier this year.
Penang, he said would now be seeking a fairer deal from the federal government to allow all Penangites equal opportunity for success and prosperity regardless of race, religion, gender or background.
- Malaysian Insider
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