Return part of Penang's SST share to ease cash flow, says backbencher
Bukit Tengah assemblyman Gooi Hsiao Leung said returning just 1% of the federal SST collection to states would give Penang RM1 billion, enough to fix its shortfall. (Facebook pic)
GEORGE TOWN : A backbencher has urged Putrajaya to return a portion of the sales and service tax (SST) collected in Penang to help address the state's cash flow problems.
Gooi Hsiao Leung (PH–Bukit Tengah) said the state contributed RM435 billion in exports last year and accounted for 7% of the national gross domestic product (GDP), yet received only RM14 per person under the federal per capita grant.
A per capita grant is a federal payment to states based on their population.
'Penang bleeds for this country, but barely survives for itself. We're not begging. We're asking for what is fair, what is right,' he said during the debate on the motion of thanks to the governor in the state assembly today.
He was commenting on the RM100 million advance Penang sought from Putrajaya last year, which chief minister Chow Kon Yeow yesterday said was motivated by a cash flow crunch the state was facing.
Chow said Penang would ramp up efforts to recover unpaid taxes and boost state revenue through higher fees and charges, including increased hotel taxes, liquor licence fees, and the urgent recovery of quit rent arrears, as part of 24 strategies being implemented to address the state's cash flow issue.
He said the cash flow problem was caused by a failure to control expenses and a general increase in the cost of running the government.
Lim Guan Eng (PH-Air Putih) earlier today demanded that Chow explain the deterioration of the state's finances which led to the administration requesting the RM100 million.
The former chief minister said the state's consolidated revenue plunged to RM50 million in 2024 from the RM1.15 billion recorded in 2019, representing a RM1.1 billion drop in five years.
Gooi said the state's financial statements showed that as of May, the consolidated fund stood at just RM199 million. Penang only made RM593 million, or 0.5% of the national GDP, and recorded 13 years of fiscal deficits, with last year's being the largest among all states.
'We're among the bottom four states in terms of revenue, only ahead of Perlis, Melaka and Negeri Sembilan,' he said.
He suggested there should be a new SST sharing formula based on each state's GDP contribution under the 13th Malaysia Plan, and that it should factor in the economic performance of the states to ensure fair distribution.
He said federal SST collections were projected to reach RM51 billion in 2025, and returning just 1% to states would give Penang RM1 billion, enough to fix its shortfall.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Star
an hour ago
- The Star
Sub-regional initiatives complement AEC goals
KUALA LUMPUR: Sub-regional initiatives such as the Indonesia-Malaysia-Thailand Growth Triangle (IMT-GT) and the Brunei Darussalam-Indonesia-Malaysia-Philippines East Asean Growth Area (BIMP-EAGA) have not only borne fruit significantly, but also proven to be vital complements to the Asean Economic Community (AEC) in boosting trade, investment and regional connectivity. UOB Kay Hian Wealth Advisors Sdn Bhd head of investment research Mohd Sedek Jantan said while the AEC sets a broad macroeconomic framework, prioritising sub-regional areas have also addressed developmental disparities by targeting marginalised and less-developed areas while operationalising Asean's inclusive growth agenda. 'The IMT-GT hugs the Straits of Malacca, one of the world's busiest trade routes, while the BIMP-EAGA sits along the Sulu and Sulawesi Seas, a gateway for maritime connectivity, making them natural nodes for boosting trade, investment and connectivity across Asean and beyond. 'Their strength lies in their focus on what economists call 'spatial economics' –targeting lagging regions with tailored interventions,' he told Bernama. These sub-regions were not just random patches of land, but are strategically positioned along critical maritime corridors, he added. Elaborating, Mohd Sedek said IMT-GT leans into agro-processing and tourism, capitalising on the complementarities between southern Thailand, northern Peninsular Malaysia and Sumatra, while BIMP-EAGA plays to its strengths in fisheries, renewable energy and ecotourism. 'This is not a one-size-fits-all approach; it is about leveraging local advantages to plug into regional and global value chains,' he said. Both sub-regional initiatives will develop special economic zones (SEZs), which act as economic rocket fuels by attracting foreign investments, sparking industrial growth and creating jobs through incentives and streamlined regulations. In the IMT-GT, zones such as Medan and Bukit Kayu Hitam in Malaysia, or Sei Mangkei in Indonesia, are already humming with activity, while BIMP-EAGA boasts over 60 SEZs from Bitung in Indonesia to Zamboanga in the Philippines. 'These zones are not just factories – they are engines of structural transformation, fostering 'agglomeration economies' – clusters where businesses, workers, and infrastructure feed off each other to drive growth. 'By linking these SEZs to cross-border trade and investment, IMT-GT and BIMP-EAGA are building bridges to Asean's broader economic cohesion,' he said. Mohd Sedek said Asean could leverage IMT-GT and BIMP-EAGA in sectors such as tourism, agrobusiness, renewable energy and manufacturing. Tourism remains a high-impact sector with strong growth in eco and halal tourism. For example, IMT-GT is promoting cross-border tourism under its Vision 2036. BIMP-EAGA focuses on community-based ecotourism and multi-country tourism circuits aligned with Asean standards, with strategic sites such as the Heart of Borneo and the Sulu-Sulawesi Marine Ecoregion, further enhancing the value of regional tourism offerings. Mohd Sedek said both sub-regions aim to build integrated value chains in the agrobusiness sector, with IMT-GT leading in agro-processing like palm oil and rubber, while BIMP-EAGA serves as Asean's food basket (shrimp, rice and seaweed), adding that halal food industries also benefit from this regional complementarity. He highlighted the potential of geothermal energy in Kalimantan as well as ocean energy and biodiesel, saying that the clean energy transition is important due to rising energy costs, which could benefit other Asean countries. The same applies to the manufacturing sector, where export-oriented industries in SEZs such as Medan, Sei Mangkei and Lhokseumawe are driving structural transformation and deeper integration into regional value chains. Mohd Sedek said both sub-regions have become critical platforms for advancing Asean's inclusive development agenda by targeting economically lagging and geographically marginalised regions. He said their interventions have helped narrow intra-national development gaps and improve spatial equity as well as challenges not fully addressed by the AEC. 'For instance, IMT-GT's economic corridors such as the Penang-Medan corridor has facilitated US$4.2bil (RM17.8bil) in trade in 2024, while the Malaysia-Thailand cross-border infrastructure projects have significantly enhanced connectivity. 'Similarly, BIMP-EAGA's Vision 2025 has catalysed US$2.8bil (RM11.87bil) in infrastructure investments, including major upgrades to the Davao and Bitung ports, reinforcing regional resilience and supporting Asean's broader connectivity goals under the Master Plan on Asean Connectivity 2025,' he said. Beyond infrastructure, Mohd Sedek said both sub-regional initiatives have boosted local economies by developing SEZs and strengthening regional value chains. He cited Thailand's Southern Economic Corridor – supported under IMT-GT – which generated over 15,000 jobs in 2023, with projects that not only attract foreign investment and integrate entrepreneurs into regional supply chains but also promote sectoral complementarity in agriculture, energy and tourism. Their bottom-up, project-driven approach complements Asean's top-down mechanisms, acting as decentralised building blocks of integration. 'By reinforcing trade linkages, fostering human capital development and enhancing cross-border governance, IMT-GT and BIMP-EAGA help Asean hedge against global supply chain risks and advance a more resilient, balanced and people-centric regional growth trajectory,' he further added.
Free Malaysia Today
4 hours ago
- Free Malaysia Today
Let laundromats use subsidised gas tanks too, group urges govt
Using commercial LPG cylinders will add to the financial pressure faced by laundromats, said the Malay Unified Laundry Association. (Bernama pic) PETALING JAYA : A group representing laundromat operators has urged the government to allow them to use subsidised liquefied petroleum gas (LPG) cylinders, in addition to micro- and small-sized food and beverage traders. The Malay Unified Laundry Association (Mula) said it was disappointed that the domestic trade and cost of living ministry's review of 2021 regulations pertaining to LPG cylinders was only focused on these F&B traders. It said the laundromat subsector mostly comprised small- and medium-sized enterprises that depend on the subsidised gas tanks for their dryers. This applied to both on-premise or coin-operated laundromats. 'Using commercial LPG cylinders will add to the financial pressure faced by laundromat operators who generally only serve domestic users. 'Also, most of them are still recovering from the effects of the pandemic and face other increases in operational costs,' it said in a statement. The association suggested that the ministry engage industry players to get a clear picture of their situation, saying an inclusive policy regarding LPG cylinders would benefit everyone. Currently, any business using over 42kg of LPG at any one time must apply for a scheduled controlled goods permit. Yesterday, domestic trade and cost of living minister Armizan Mohd Ali said the Control of Supplies Regulations (Amendment) 2021 will be reviewed with a focus on the needs of micro- and small-sized F&B businesses, and to ensure clarity regarding the regulation. Until the review is finalised, no legal action will be taken against micro- and small-sized businesses in the F&B sector regarding the use of subsidised cooking gas tanks. However, the ministry will continue to combat the illegal use of subsidised LPG cylinders by non-eligible industries and the decanting of gas from subsidised cylinders to non-subsidised ones before being sold at a profit. Commercial LPG cylinders cost nearly RM70 each – almost three times the rate of subsidised gas tanks.
Free Malaysia Today
6 hours ago
- Free Malaysia Today
Set up foundation to honour Double Six crash victims, says Upko No 2
On June 6, 1976, a GAF Nomad aircraft carrying then Sabah chief minister Fuad Stephens and several state leaders crashed in Sembulan, Kota Kinabalu, killing all on board. (Bureau of Aircraft Accidents Archives pic) PETALING JAYA : The families of the victims of the 1976 Double Six tragedy are urging the federal government to establish a foundation as a meaningful recognition of the incident, which claimed the lives of 11 people, including then Sabah chief minister Fuad Stephens. Donald Peter Mojuntin, whose father Peter Mojuntin died in the crash, said taking the matter to court would be excessive and that the families were not making any unreasonable demands, Harian Metro reported. 'We just want proper recognition,' he was quoted as saying during the 49th anniversary memorial of the tragedy at the Double Six Monument in Sembulan, Kota Kinabalu. Donald Peter Mojuntin. Donald, who was also representing the families of the other victims, said the proposed foundation could serve to honour the victims and support their descendants, particularly in education and other areas of need. 'This would be a step forward,' the Upko deputy president said. He noted that the federal government has yet to take substantive action beyond offering letters of condolence. 'The state government has done its part from the beginning and looked after the families' welfare. We hope the federal government will do the same,' he said. Donald also called for the tragedy to be acknowledged as part of national history, not just Sabah's. 'Although it was a dark chapter, it deserves a place in our national history books, just like other major events in Malaysia,' he said. Sabah youth and sports minister Ellron Alfred Angin, who represented chief minister Hajiji Noor at the memorial, said this year's commemoration featured a poetry recital competition with 132 participants. He said there are plans to involve more young people, including students, in future events commemorating the incident. 'We also propose inviting a representative from the federal government to next year's 50th anniversary ceremony so they can better understand and appreciate the historical significance of this tragedy,' he said. On June 6, 1976, a GAF Nomad aircraft carrying Fuad and several state leaders crashed in Sembulan, Kota Kinabalu, killing all on board. The victims included state ministers Salleh Sulong, Chong Thien Vun and Peter. Investigations were conducted by Malaysian authorities, the aircraft's manufacturer GAF, and the Australian department of transport. However, their findings were not made public until April 2023. The Malaysian report found no evidence of sabotage, fire or explosion. The Australian report concluded that Sabah Air, the operator of the flight, was functioning illegally at the time, with its operations manual unapproved by the then federal civil aviation department.
