Malaysia Prime Minister Anwar Ibrahim has said that nearly all Malaysian states received federal government spending exceeding the amount of taxes collected from them between 2023 and 2025, with only Selangor and Penang standing as exceptions.
Speaking during a question-and-answer session in Parliament on Tuesday, Anwar said claims that certain states were being sidelined are not supported by official data, adding that every state has received higher allocations under his administration compared with previous years.
He said Selangor contributed an average of RM43.6 billion in tax revenue during the 2023-2025 period, while federal spending in the state stood at RM15 billion.
Similarly, Penang recorded average tax contributions of RM10.7 billion, while receiving RM7.9 billion in federal expenditure over the same period.
In contrast, Kelantan contributed an average of RM946 million in taxes but received RM8.9 billion in federal spending, while Kedah generated RM3.7 billion in tax revenue against RM9.5 billion in government expenditure.
Anwar further said Terengganu recorded combined tax and petroleum revenues of between RM2.2 billion and RM2.4 billion, but federal spending there reached RM7.8 billion.
Meanwhile, Perlis contributed RM419 million in taxes while receiving RM2.2 billion, and Johor paid nearly RM14 billion in taxes compared with RM16 billion in federal expenditure.
The Malaysian prime minister said the government has increased allocations for all states based on priorities such as poverty reduction, education infrastructure development and public service needs.
He added that allocations under the Ecological Fiscal Transfer (EFT) mechanism and capitation grants have also been raised.
Rejecting allegations of discrimination against certain states, Anwar said the claims are baseless, noting that several states have received record-high allocations under the current Madani government.