BUTTERWORTH – Prime Minister Datuk Seri Anwar Ibrahim has rejected claims that the Madani government is favouring Penang over other states, insisting that no state has ever been sidelined under his administration.
Anwar said he was aware of remarks made during a campaign ceramah for the Ayer Kuning by-election, where it was alleged that “Anwar takes money from Terengganu and gives it to Penang”.
He did not identify which party had made the claim.
“However, I have just said earlier (today) in Kelantan that despite the fact that revenues collected by Terengganu and Kelantan collectively is smaller than the federal allocations, we have doubled the allocation for Kelantan this year on flood mitigation and water supplies, when compared with 2022,” he said during his speech at the Madani Aidilfitri celebration at PICCA Convention Centre @ Butterworth Arena.
“Therefore, let us not be envious or be competitive (on allocations for) states. When Penang needs help, we will provide aid.
“…and when Kedah needed aid, we have recently approved RM1 billion in aid for padi farmers in the state as there is a need to help them for the sake of (maintaining) food security of our country.”
Anwar also defended major development initiatives in Penang, such as the Mutiara Line LRT project and the expansion of the Penang International Airport (PIA), describing them as necessary given that previous administrations had not prioritised public transport in the state, and had assumed that the airport’s existing capacity was sufficient.
While speaking in Kelantan earlier today, Anwar reiterated that opposition-led states have not been sidelined when it comes to federal allocations. He noted that Kelantan received a 30% increase in federal funding last year, rising to RM762 million from RM588 million in 2023.
Terengganu, he said, was also given a 28% increase, amounting to RM2.02 billion in 2024 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.”
Anwar said the increase in allocations 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, and 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 at the 2025 Madani Aidilfitri celebration in Kelantan, held at Pantai Irama.
For 2025, the federal government has approved allocations for poverty eradication programmes amounting to RM25 million for Kelantan and RM60 million for Terengganu. – April 12, 2025