PENANG took centre stage today as policymakers, legislators, academics and government representatives from across Malaysia gathered at Penang Institute for the Interstate Forum on Federal-State Relations 2026, a platform aimed at fostering stronger cooperation and more effective governance between the Federal Government and state administrations.
Launching the forum, Chief Minister Chow Kon Yeow described federal-state relations as a vital pillar of Malaysia’s development, stressing that closer collaboration and stronger institutions are essential in addressing increasingly complex challenges facing the nation.
“Malaysia’s strength as a federation lies in the close relationship between the Federal Government and the states as strategic partners that complement one another in national development,” Chow said.
He noted that contemporary issues such as climate change, food security, water management, digital transformation, artificial intelligence, urban mobility, and technology-driven economic growth require integrated solutions and a mature spirit of federalism.
Chow said discussions on federal-state relations should extend beyond administrative matters to include fair resource distribution, stronger state institutional capacity, improved data-sharing and more structured consultation mechanisms between the two levels of government.
He added that Penang has consistently supported national development efforts while advocating for governance reforms that would empower states to contribute more effectively to the country’s progress.
“We believe good governance requires openness in discussing issues such as decentralisation, state empowerment and balanced fiscal relations,” he said.
Chow also highlighted the importance of strengthening institutional mechanisms that enable regular and constructive engagement between federal and state governments, regardless of changing political landscapes.
“Institutions will remain long after individuals and political parties. What matters is how we strengthen these institutions so they can better serve the nation and its people,” he said during a press conference after the launch.
Earlier, Penang Institute executive director Datuk Dr Ooi Kee Beng said the forum comes at a crucial time as Malaysia navigates increasingly interconnected challenges that demand closer cooperation between different levels of government.
“Federalism is not a static arrangement. Like any institution, it must continually evolve to meet changing realities,” Ooi said.
He noted that issues such as economic transformation, infrastructure development, climate resilience, digitalisation, public service delivery, and social inclusion,transcend administrative boundaries and cannot be effectively addressed by any single level of government acting alone.
Importantly, Ooi stressed that the forum was designed as a platform for constructive dialogue rather than political debate.
“It is about creating a space for constructive dialogue. It is about asking how our institutions can function more effectively, how responsibilities can be carried out more efficiently, and how cooperation can better serve the interests of the rakyat,” he said.
Meanwhile, Bukit Tengah assemblyman Gooi Hsiao-Leung said the gathering marked an important step in encouraging broader discussions on institutional reforms and mechanisms that could further strengthen federal-state relations in the long term.
“What is important is that states are taking the initiative to come together and begin this conversation on how we can strengthen cooperation with the Federal Government. When states are strong, the federation as a whole becomes stronger and more prosperous,” he said.
The forum brought together participants from various states and professional backgrounds, reflecting a shared commitment to exploring practical approaches towards enhancing cooperation, strengthening institutions and supporting Malaysia’s continued development through a more effective federal-state partnership.
Among some of the notable figures present earlier were Selangor Local Government and Tourism Committee chairman Ng Suee Lim, Terengganu Local Government, Housing, and Health Committee chairman Datuk Wan Sukairi Wan Abdullah, and a few others.
Story by Kevin Vimal
Pix by Muhammad Iqbal Hamdan
Video by Siew Chia En