GEORGE TOWN: Political considerations at times do influence the federal government’s allocation of projects to states, but institutional strengthening must remain the long-term priority in the federal-state relationship, says Chow Kon Yeow.
The Penang Chief Minister said Malaysia’s governance system must move beyond political cycles and focus on strengthening institutions that endure regardless of leadership changes.
“Politicians and parties come and go. We are seasonal. But institutions remain. Some grow stronger, others are weakened depending on many factors,” he said during a press conference at Penang Institute on Thursday (June 11) after officiating the launch of a forum organised by Penang State Assembly Select Committee on State-Federal Relations and Penang Institute: "Interstate Forum on State-Federal Relations.
Chow, who holds both state and federal responsibilities, said the purpose of the discussion was to examine how federalism can be strengthened without undermining the spirit of the federation.
“The ultimate goal is nation-building, how we strengthen institutions and improve relations between the federal government and the states so we can advance the country together,” he said.
He cautioned against weakening federalism due to unresolved state demands, noting that financial constraints and administrative gaps often shape federal-state tensions.
On federal allocations, Chow said existing mechanisms such as per capita grants are limited in scope, prompting calls from states for more sustainable financial arrangements, including revenue-sharing models.
He said several states continue to rely on federal loans to finance essential infrastructure, including housing, flood mitigation and water supply projects.
“If you look at the accounts, there are states that still have outstanding loans with the federal government. This shows the scale of funding needs at the state level,” he said.
Chow also drew from his experience serving under different political configurations at the state and federal levels, saying cooperation levels vary depending on circumstances.
“At times, projects that were previously requested but not approved are later approved more easily. In some cases, projects not requested by the state are implemented based on ministerial priorities,” he said.
He added that while such decisions are often based on administrative needs, political considerations “cannot be denied entirely”.
“We cannot say it does not happen. Sometimes it does, especially to address perceptions of neglect over the years,” he said.
Chow added that even the Prime Minister Datuk Seri Anwar Ibrahim had previously acknowledged that Penang, as a key economic hub, may not have received sufficient attention in the past, leading to renewed federal consideration of several development projects.
