GEORGE TOWN, May 25 — Yang diPertua Negeri Tun Ahmad Fuzi Abdul Razak has called on the Penang government to implement a deficit reduction strategy for 2024, emphasizing that reliance on the state’s consolidated fund balance is not sustainable. In his address at the opening of the second term of the 15th state legislative assembly, the governor stressed the need for proactive measures to boost state revenue amidst a deficit budget.
Penang has consistently demonstrated strong financial performance relative to other states in Malaysia, with the state’s deficit budget typically covered by the accumulated balance of the state consolidated fund. However, Governor Ahmad Fuzi highlighted the importance of finding new revenue sources and reducing reliance on these funds. Penang, which has the second-lowest outstanding federal loans among Malaysian states, must seek innovative solutions to maintain fiscal health. The state budget has seen a steady increase, with the 2024 budget set at RM1.047 billion, projecting a deficit of RM514.53 million, marking the 13th consecutive deficit budget since 2011.
