KUALA LUMPUR – The government has never sidelined opposition-led states when it comes to federal allocations, Prime Minister Datuk Seri Anwar Ibrahim said, noting that Kelantan saw a 30% increase in funding last year to RM762 million, up from RM588 million in 2023.
He added that Terengganu also received a 28% increase in allocations, amounting to RM2.02 billion last year, compared to RM1.57 billion the previous year.
“I want to clarify this. The menteri besar understands, but sometimes people on the ground still ask why Kelantan and Terengganu are being sidelined, and why the ‘compassionate funds’ (wang ehsan) aren’t reaching them.
“So I want to be clear. I want to explain this because I respect and appreciate the friendship shown by Kelantan’s leadership, and we will continue supporting efforts for the benefit of the people.
“This increase includes provisions such as MARRIS (the Malaysian Road Records Information System), TAHAP (allocation based on levels of economic development, infrastructure, and quality of life), per capita grants, compassionate funds, as well as allocations under the concurrent list.
“These allocations are a major source of state revenue, especially for Kelantan and Terengganu, which generate only around RM500 million and RM250 million respectively from their own state-level sources,” he said during his speech at the 2025 Madani Aidilfitri celebration in Kelantan, held at Pantai Irama today.
The federal government has also approved allocations for poverty eradication programmes amounting to RM25 million for Kelantan and RM60 million for Terengganu for the year 2025.
Meanwhile, the prime minister, who arrived at 10.45am accompanied by Kelantan Menteri Besar Datuk Mohd Nassuruddin Daud, was welcomed by Natural Resources and Environmental Sustainability Minister Nik Nazmi Nik Ahmad and Kelantan Deputy Menteri Besar Datuk Mohamed Fadzli Hassan.
Also in attendance were Communications Minister Datuk Fahmi Fadzil, Chief Secretary to the Government Tan Sri Shamsul Azri Abu Bakar, and Director-General of Public Services Tan Sri Wan Ahmad Dahlan Abdul Aziz.
Separately, Anwar said the federal government had decided to expedite flood mitigation projects in Kelantan to address the recurring floods that disrupt the lives of residents in the state every year.
In addition, the government will explore several new methods not only to tackle flooding but also to deal with water shortages during the dry season.
“This state sometimes experiences overflowing floods, and the following month it’s bone dry with no water.
“God has given us strength, effort, and technology – so can’t we store the excess floodwater for the dry season? Of course we can,” he said.
As such, he has instructed the Energy Transition and Water Transformation Ministry, the Economy Ministry, and the Finance Ministry to explore these new approaches. – April 12, 2025