THE Federal Government’s allocation for Penang has risen by 60% to RM7.8 billion this year under the Madani administration, Prime Minister Datuk Seri Anwar Ibrahim announced.
Anwar noted that under previous federal administrations, Penang had not received sufficient attention compared to other states.
“Let me point out that in 2021 and 2022, federal spending for Penang did not even reach RM5 billion.
“Now, under the Madani Government, we are working to restore fairness and ensure that Penang receives a reasonable level of support.
“In 2023, we allocated RM5.7 billion, followed by RM5.8 billion in 2024. In 2025, there was a significant increase to RM7.6 billion, and this year it has been further raised to RM7.8 billion.
“This represents a 60% increase compared to 2021 and 2022. The allocation includes funding for the Penang Light Rail Transit (LRT) Mutiara Line project as well as the construction of the Juru–Sungai Dua Expressway,” he said.
Anwar was speaking at the Karnival Mega JPJ Madani 2026, held in conjunction with the 80th anniversary of the Road Transport Department (JPJ) at Batu Kawan Stadium today.
Also present were Chief Minister Chow Kon Yeow, Transport Minister Anthony Loke, Chief Secretary to the Government Tan Sri Shamsul Azri Abu Bakar, Deputy Transport Minister Datuk Hasbi Habibollah, Deputy Chief Minister I Prof Datuk Dr Mohamad Abdul Hamid, Deputy Chief Minister II Jagdeep Singh Deo and Penang State Secretary Datuk Seri Zulkifli Long.
Other distinguished personalities present included state executive councillors Datuk Rashidi Zinol, Zairil Khir Johari, Wong Hon Wai, Lim Siew Khim, Jason H’ng Mooi Lye, Daniel Gooi Zi Sen, Datuk Seri Sundarajoo Somu and Goh Choon Aik, Public Service director general Tan Sri Wan Ahmad Dahlan Abdul Aziz, Transport Ministry secretary-general Datuk Seri Jana Santhiran Muniayan, JPJ director-general Datuk Aedy Fadly Ramli and Penang JPJ director Zulkifly Ismail.
Anwar defended the increased allocation, describing it as part of a broader effort to ensure balanced national development.
“The Penang LRT Mutiara Line project involves substantial costs, and some opposition MPs have criticised the prioritisation of Penang.
“I explained that the project initially focused on the island, but as someone from Seberang Perai, I understand the need to extend development to the mainland.
“That is why I proposed that the LRT line should cross from the island to the mainland, which naturally increases the cost.
“Part of the funding comes from government allocations, while the rest is sourced through financing.
“Despite this, the issue has been politicised. In reality, allocations to Kelantan and Terengganu have also been increased. All states have received higher federal funding as national revenues improve,” he said.
Meanwhile, Chow expressed appreciation to Anwar and the Federal Government for their continued financial support.
“Penang is Malaysia’s economic jewel. With a population of just 1.8 million, about 5% of the national total, the state contributes 7.4% to the gross domestic product (GDP) and more than 44% of the country’s exports based on preliminary 2026 data. Though small in size, Penang delivers an outsized contribution.
“This success is driven by 355,000 workers in the manufacturing sector and the movement of over 300,000 vehicles daily.
“An efficient mobility system is not a luxury but it is an absolute necessity. This is where the role of JPJ is crucial,” he said.
Chow added that JPJ today goes beyond enforcement.
“Through the MyJPJ application, which won the ‘Digital Transformation of the Year’ award in the transportation category at the GovMedia Awards 2025 in Singapore, users can now renew licences, pay road tax and settle summonses directly via their smartphones.
“This innovation saves the country RM96 million annually and aligns with the Penang2030 vision, which emphasises technology and high-impact public services,” he said.
He reaffirmed the state government’s commitment to maintaining road infrastructure at the highest standard.
“Damaged roads are not merely an inconvenience as they pose a risk to lives. Every complaint is addressed promptly,” he added.
At a broader level, Chow said both federal and state governments are working together to drive a historic transformation in transportation.
“The Penang LRT Mutiara Line, spanning 29.5 kilometres and linking George Town to Seberang Perai, is currently under construction and is expected to begin operations by 2031.
“We also welcome the Federal Government’s commitment to implementing the Juru–Sungai Dua Expressway project.
“All packages are expected to commence physical works in the third quarter of this year, subject to finalisation of technical details.
“Overall, the project, serving as a key corridor connecting traffic flows from the north and south of Peninsular Malaysia is targeted for full completion by the end of 2030,” he said.
Chow added that strategic collaboration with JPJ will continue to be strengthened, particularly in high-growth areas such as Bayan Lepas and the Penang bridges.
“In a fast-moving state like Penang, an efficient transport system is not just a convenience but it is the lifeblood of the people.
“As long as roads are in use, the responsibility to safeguard lives must be carried out with utmost dedication and integrity,” he said.
Chow also congratulated JPJ on its 80th anniversary, expressing hope that the department will continue to excel in delivering quality public service.
During the event, renowned songstress Datuk Seri Siti Nurhaliza was announced as JPJ’s ‘Road Safety Icon’.
Story by Riadz Akmal
Pix by Muhammad Iqbal Hamdan
Video by Darwina Mohd Daud