Penang tables RM1.074b budget, forecasts record-low RM5.62m deficit

The Penang government has unveiled its RM1.074 billion state budget for 2027, with a projected budget deficit of RM5.26 million, marking a record low since the allocation began. Chief Minister Chow Kon Yeow revealed the budget in the state assembly today, noting that it is RM14 million less than the RM1.088 billion allocated for the current year.

The low deficit follows a similar figure of RM19.92 million for the previous year, 2026. Penang collected RM847.53 million in state revenue from January to October 2027, achieving 79.35% of its annual revenue target. The state government aims to maintain this revenue level to meet its target of RM1.068 billion for the year. Additionally, quit rent collection rose by 44.41% to RM167.59 million in October 2027, up from RM116.05 million in 2025, thanks to the first-ever quit rent review in 32 years.

The budget also includes special financial assistance for civil servants, amounting to RM58 million for the i-Sejahtera aid program and RM8 million for the Bantuan Agenda Ekonomi Saksama initiative. Other allocations include RM16.8 million for public bus subsidies, RM9 million for e-hailing driver incentives, and RM1.2 million for taxi and school bus driver incentives.

The state has also earmarked RM16.45 million for flood mitigation and RM6.5 million for agricultural initiatives. Lastly, with Penang set to co-host the SEA Games next year, the government has allocated RM15 million to support sports infrastructure upgrades for the regional tournament.