GEORGE TOWN: Penang Chief Minister Chow Kon Yeow has expressed his goal to leave the state with a strong financial foundation, targeting RM1bil in reserves by the end of his final term.
This follows a RM100mil cash advance from the Federal government to help offset a projected budget deficit this year.
"With these achievements and our continued commitment, I am confident our Penang 2030 agenda will be fulfilled.
"I hope to hand over the state in strong financial standing, what I call surrendering the state in a battle-ready condition," he said during his winding-up speech at the state assembly on Thursday (May 22).
Chow (PH–Pengkalan Kota), who took office as chief minister in 2018, is expected to step down at the end of the current term.
He said the RM1bil target would provide the next administration with fiscal flexibility to support development initiatives and public welfare.
According to Chow, who is also the state finance, economic development, land, and communications committee chairman, the RM100mil advance was approved and disbursed last year.
He said it will be repaid through reduced federal grant allocations between 2027 and 2029.
Chow also confirmed that the Federal government had rejected Penang's long-standing request for 20% of the federal tax revenue collected in the state to be returned.
"We accept that they have rejected it, but we will continue to demand it," he said.
On the state's revenue, Chow announced that it has recorded a surplus of RM78.2mil as of Tuesday (May 20).
He said Penang has recorded RM374.4mil in revenue against RM296.2mil in expenditure.
