Penang has reinforced its position as one of Malaysia’s key economic growth engines, recording more than RM242 billion in approved manufacturing investments since 2018, while calling for a more equitable share of federal development funding in recognition of its contribution to the national economy.
Chief Minister Chow Kon Yeow said the state has continued to demonstrate strong economic resilience despite global economic uncertainty and increasingly challenging geopolitical conditions.
Chow said approved manufacturing investments reached RM242.34 billion between 2018 and the first quarter of 2026, significantly exceeding the RM98.32 billion recorded during the 2008–2017 period.
“For the first quarter of 2026 alone, Penang secured RM4.9 billion in approved manufacturing investments involving 99 projects, further strengthening the state’s position as a leading high-technology manufacturing and investment hub,” he said.
Chow said Penang deserves a more balanced allocation of development funding from the Federal Government, commensurate with its substantial contribution to the country’s economic growth.
He stressed that the state’s request was not for special treatment but rather for fair consideration to ensure critical infrastructure projects and public facilities continue to be developed for the benefit of Penang residents.
“We are not asking for special privileges, but for reasonable consideration so that development projects and public facilities can continue to be strengthened for the benefit of the people, especially at the grassroots level,” he said.
The Chief Minister, who also serves as the State Executive Councillor for Finance, Economic Development, Land and Communications, noted that recent discussions in Parliament showed that only Penang and Selangor receive development allocations that are lower than their respective financial contributions to the Federal Government.
Despite the disparity, Chow said Penang remains committed to the principles of federalism and recognises the important role played by every state in ensuring the country’s continued progress.
However, he argued that Penang’s achievements as one of Malaysia’s largest exporters and a leading destination for both foreign and domestic investments should be reflected through more balanced development allocations.
He said stronger federal support would enable the state to further improve public infrastructure, enhance public services and raise the quality of life for its residents.
“Penang’s achievements should not only be measured through economic figures, but also translated into tangible development that benefits the people, including local communities that play an important role in supporting the state’s continued growth and progress,” Chow said.
