Penang will not raise taxes or service charges to boost revenue, says Chow Kon Yeow

 

GEORGE TOWN, May 14 — The Penang state government will not burden the people through sudden hikes in taxes or service charges in order to increase state revenue, said Chief Minister Chow Kon Yeow.

The Padang Kota assemblyman said the state will take a holistic, integrated and focused approach to strengthen its financial position so it remains strong and sustainable in the long term.

One of the measures being prioritised is improving the efficiency of existing revenue collection by enhancing collection systems and enforcing the collection of arrears, he said.

“The state government is also optimising the use of state-owned assets through the disposal, leasing and redevelopment of non-productive assets to generate higher returns,” he said at the state legislative assembly today in response to a question from Phee Syn Tze (DAP–Sungai Puyu).

He said the state government is looking to diversify revenue sources prudently without involving tax hikes or service charges that could place additional pressure on the people.

“At the same time, aspects of fiscal governance continue to be strengthened through the implementation of a zero-based budgeting approach, high-impact spending, integrated monitoring of financial performance, as well as enhancing transparency and accountability through audits and periodic reporting,” he said.

He said this approach is not only aimed at increasing state revenue in the short term but also at building a more resilient, inclusive and sustainable financial foundation for the state.

Chow said the state is also encouraging strategic investments, especially in high-technology manufacturing, modern services and tourism sectors.

He said government-linked companies (GLCs) also play an important role as catalysts for the state’s economic development through the implementation of strategic projects, infrastructure development and the provision of public facilities.

“Although GLCs do not function as direct contributors to state revenue through tax collection, their role is significant in generating economic value that indirectly contributes to increased state revenue,” he said.

He said Chief Minister Incorporated (CMI) played a direct role in revenue generation through the management and optimisation of state assets, including rental collection, lease returns and the implementation of the Request for Proposal (RFP) method.

He said as a result of the approach, CMI contributed RM6.41 million in revenue to the state government in 2024 before the amount increased to RM54.2 million in 2025.

“The increase reflects the effectiveness of the asset management strategy implemented to strengthen the state’s economic and financial foundations sustainably without affecting the wellbeing of the people,” he said.