Chief minister Chow Kon Yeow said the proposal had been informally conveyed to Anwar during a recent meeting.

“At the previous meeting, the prime minister responded positively to the request for returning 20% of the tax revenue to Penang. However, this does not guarantee approval.

“Therefore, I will engage in discussions with other chief ministers and menteris besar next month,” he said.

“The 20% is subject to the (federal government’s) willingness to agree on this. If there is an agreement, we can discuss the matter further,” he told reporters after officiating the Maybank 2024 Invest Asean Forum “Penang: Malaysia’s High-Tech Powerhouse” at the Spice Convention Centre here today.

Chow expressed hope for open-mindedness from the federal government, considering the significance of numerous planned projects and initiatives requiring funding.

On May 29, Chow appealed to the federal government during the state assembly meeting to reconsider the tax distribution system to states by returning 20% of the tax revenue collected from the states to create opportunities for more effective development programmes and projects.