Citing last year’s contribution of RM94.7 billion, or 6.7% of the gross domestic product (GDP), Chow said that being the fourth highest contributor in the country, the federal government must reward Penang fairly.
According to the Statistics Department’s 2019 Penang Economic Performance Report, most of the RM94.7 billion came from the services sector (RM48.7 billion) and manufacturing (RM40.5 billion), with construction (RM2.6 billion), agricultural (RM2.1 billion) and mining (RM200 million) among the other contributors.
He said the state had only received RM241 million in federal funding this year, comprising yearly per capita contributions based on population, a RM15.1 million Covid-19 aid grant, and road repair funds, among others.
“While we appreciate the federal funding we have received, the allocation is not as much as we are giving to the country,” he said in his winding-up address at the state assembly.
“Also, of the RM6.78 billion in grants given in 2016, Penang received only 3.18% compared with the 13 other states,” he said.
Chow said Penang had asked for RM10 billion in federal funding to build its first Light Rail Transit (LRT) line to alleviate traffic but was declined.
He said the state had asked for the funding via the 12th Malaysia Plan for the Bayan Lepas LRT project, with the transport ministry saying “no” in a letter dated June 17.
Separately, he said, the Penang Development Corporation (PDC) had taken a RM551 million loan from CIMB Bank to open up industrial land and to expand its land bank in Batu Kawan East and Changkat Byram.
He said the funding was used to carry out infrastructure works at the Bukit Minyak Industrial Park and Penang Science Park North.
He said the state government had previously loaned RM679 million to PDC to expand its land bank and to carry out infrastructure work. To date, it has paid back RM277.7 million.
Chow was responding to a question raised by Lim Guan Eng (DAP-Air Putih).
Meanwhile, Chow said it would be selling state land at market prices through an open tender in order to raise revenue for the state.
The move, he said, was to counter the deficit budget tabled for next year, and would also mean that the state does not have to raise land-related taxes during the pandemic.
“Besides selling land, dormant state land would be transferred to PDC so that it could be monetised,” he said.
Chow also announced plans to change old classifications of lands previously regarded as “villages” to “townships” to reflect its current state.
He said the most obvious was Bayan Baru and Bayan Lepas, where the former is considered “tanah desa” (village land) compared with Bayan Lepas, which is considered town land.
“Changing the classification is to make it fair to those who are paying a higher quit rent at townships compared with those in areas that are more developed but still classified as ‘village land’,” he said.