Penang’s Federal funding spike defended as strategic investment, not preferential treatment

A SHARP rise in federal development funding for Penang, approaching a 60 per cent increase since 2022, has been framed by Prime Minister Datuk Seri Anwar Ibrahim as a necessary and proportionate response to the state’s expanding infrastructure and economic needs.

Addressing concerns over the scale of allocations, Anwar said the upward trend reflects both national revenue growth and the urgency of key development projects, rather than preferential treatment.

“So, in 2023, Penang was allocated RM5.7 billion, 2024 (RM5.8 billion), 2025 (RM7.6 billion) and for this year, RM7.8 billion.

“This is a rightful and reasonable allocation, reflecting an increase of nearly 60 per cent compared with 2022,” he said.

He noted that allocations had remained below RM5 billion in 2021 and 2022 before rising steadily over the past three years, signalling a shift in federal investment priorities towards high-impact infrastructure.

Among the major initiatives driving the increase are the Penang Light Rail Transit Mutiara Line and the Traffic Dispersal Project connecting the Juru and Sungai Dua toll plazas, both seen as critical to easing congestion and sustaining economic growth in the state.

Anwar emphasised that the expansion in Penang’s funding does not come at the expense of other regions, stressing that development allocations have been increased nationwide in line with stronger government finances.

Following his remarks at the Road Transport Department’s 80th Anniversary Celebration and the JPJ MADANI Mega Carnival, the Prime Minister chaired a district development meeting in Bukit Mertajam, focusing on local priorities in Seberang Perai Tengah.

The session, which lasted about 45 minutes, examined infrastructure gaps, economic opportunities and community welfare, underscoring the government’s effort to ensure that increased allocations are translated into tangible improvements on the ground. - April 25, 2026