Penang tables RM1.074 billion budget for 2027 with RM5.62 million deficit
The state expects revenue of RM1.069 billion and has approved RM280.17 million in development spending for 514 projects.
Penang has proposed RM1.074 billion in operating spending for 2027, with Chief Minister Chow Kon Yeow saying the projected RM5.62 million deficit would be the smallest in the state's budget history. The shortfall compares with RM19.92 million projected for 2026.
Presenting the budget to the state legislative assembly, Chow forecast revenue of RM1.069 billion, up RM800,000 or 0.07 per cent from 2026. Non-tax revenue is expected to provide RM566.11 million, or 52.96 per cent, mainly through land premiums, special charges and investment interest.
Fixed charges and grants make up the biggest operating allocation, at RM607.96 million. Services and supplies will receive RM219 million, an increase of RM17.47 million or 8.67 per cent. The budget attributed that rise to a national minimum wage increase from RM1,700 to RM2,000 in June 2027, affecting cleaning, maintenance and security contracts.
Separately, approved development expenditure covers 514 projects and totals RM280.17 million, down 12.1 per cent from RM318.57 million in 2026. Chow said priorities include land acquisition for the Mutiara Line LRT, the Airport Link Road, Silicon Island access routes and Gurney Bay Phase 2.
Chow said civil works for Package CMC1 of the Mutiara LRT, spanning 23.7km between Komtar and Silicon Island, were 15.5 per cent complete as of September 2026. Full operations are scheduled for December 2031.
- Welfare: i-Sejahtera funding remains at RM58 million. Program Mempelai Emas will provide newlyweds with a one-off RM500 gift, while RM350,000 is allocated to the state's first Social Development Fund.
- Transport: RM16.8 million will support Pas Mutiara and free CAT buses. Eligible e-hailing drivers will receive a one-off RM600 incentive, subject to an allocation ceiling of RM9 million.
- Land charges: The 50 per cent quit rent rebate will remain in 2027, subject to eligibility requirements.
- Industry: Plot sales at Silicon Island's 700-acre Green Tech Park will start in the first quarter of 2027. The first production facility is expected to operate by 2028.
