DESPITE recording nearly RM1bil in budget deficits over five years, Penang Chief Minister Chow Kon Yeow assures the public that “the state is on the road to recovery”.
He said Penang’s Consolidated Revenue Account (AHD) stood at RM235.55mil as of May 31, 2025, up from RM155.94mil at the end of 2024.
“The goal is to restore the AHD to RM1bil by 2028. We are optimistic that by increasing revenue and managing our spending carefully, we will achieve this target,” he told a press conference in Komtar.
It was previously reported that the state’s AHD dropped from RM1.15bil in 2019 to RM155.94mil in 2024.
According to Chow, Penang registered a deficit of RM267mil in 2020, followed by RM38.6mil in 2021, RM156.9mil in 2022, RM382.7mil in 2023 and RM174mil in 2024.
He said the shortfalls were mainly due to increased spending on welfare and development programmes that directly benefitted the people.
He noted that the situation was worsened by the Covid-19 pandemic, which led to significant public welfare expenditure, including financial assistance for businesses, taxi drivers and the public sector workers.
“All these amounted to over RM370mil during the pandemic, and it burdened our finances.
“But to us, this was a necessary response, as the money spent helped the people recover.”
Chow said the state government remained committed to people- centric initiatives, despite operating with financial constraints.
“This is in line with our Penang 2030 vision, where growth, inclusiveness and sustainability go hand in hand,” he said.
He also stressed the importance of maintaining public confidence in the state’s fiscal management.
“I want to ensure that whoever takes over the state leadership will inherit a solid financial foundation.
“They can then continue the development and welfare initiatives that Penang is known for,” Chow added. – By R. SEKARAN
