OVER the past seven years, from 2018 to 2025, the Penang government has poured more than RM1.09 billion into welfare initiatives, a reflection of our deep, unwavering commitment to the people of Penang, Chief Minister Chow Kon Yeow (PH – Padang Kota) said.
As he provided a complete breakdown of the budget for the initiatives, Chow understood the hopes, dreams, and struggles of the community, especially after weathering through the Covid-19 pandemic previously.
During his winding-up speech at the State Legislative Assembly Sitting today, Chow emphasised that in 2019, the state’s consolidated revenue account (Akaun Hasil Disatukan) stood strong at RM1.15 billion.
“But as the years passed, and as needs grew, this balance steadily declined.
“By December 2024, it had dropped to RM155.94 million, and as of May 2025, it stands at RM235.55 million, a clear sign of how deeply we have dipped into our reserves to uphold the welfare of our people.
“It is not just about spending; it is about spending with purpose.
We have seen the highest welfare allocations in 2023, where RM554.20 million went to fixed grants and aid, an increase of over 43% compared to the previous year.
“Programmes like i-Sejahtera, support for religious schools, Chinese and Tamil schools, and financial backing to state agencies and subsidiaries were all part of this initiative to uplift and empower our communities.
“But this noble path comes with its challenges.
From 2020 to 2024, the state-operated under a deficit not because we were reckless, but because we made the conscious choice to prioritise people over profit.
“In 2023 alone, we spent RM951.75 million against revenue of RM592.96 million.
“That is a deficit of RM358.79 million, the highest to date,” Chow said in his speech.
He also understood the difficulty but necessary questions concerning this issue.
“Is this level of spending sustainable? Can we continue at this rate without growing our revenue?
“We must face reality. Our revenue has not grown in tandem with our increasing obligations.
“While we remain committed to protecting the most vulnerable, we now need to review and refocus our welfare programs to ensure that aid continues to reach those who need it most, without compromising the state’s financial stability,” he added.
With the continuous call for the Federal Government to fulfill the long-standing request of returning 20% of taxes collected from Penang, Chow said this financial strain would be considerably eased.
“An additional RM1 to RM2 billion annually could transform our ability to govern sustainably.
“Let me be clear that every cent spent on welfare was spent with care, compassion, and the belief that no one in Penang should be left behind.
“And if that means drawing down our savings to keep families afloat, then I have no regrets.
“But moving forward, we must be strategic. We must be targeted,” he said.
Giving much emphasis on this issue, Chow concluded by stating that it was important that realistic measures must be taken to ensure that Penang’s future remains just as secure as its present is compassionate.
Story by Kevin Vimal
Pix by Noor Siti Nabilah Noorazis