World · Malaysia Bureau
Kemaman MP seeks equitable funding formula for all peninsula states
A federal legislator has questioned why the federal government applies different funding principles when dealing with Peninsular Malaysia compared to its approach with Sabah and Sarawak.
LSN Malaysia ·

Kemaman Member of Parliament Samsuri Mokhtar has called for the federal government to adopt a fairer, needs-based funding mechanism for all Peninsular Malaysian states, questioning the disparity in how Putrajaya allocates resources across the country.
Samsuri highlighted an apparent inconsistency in federal funding philosophy, noting that the government has demonstrated its willingness to negotiate tailored financial arrangements with Sabah and Sarawak, yet has not extended similar principles to peninsula states.
The call reflects growing concerns among state-level politicians over the equity of federal fund distribution mechanisms. Samsuri's intervention suggests that some lawmakers believe Peninsular states are disadvantaged under current allocation formulas compared to the more flexible approach adopted for East Malaysian states.
A needs-based funding approach would theoretically allocate resources according to individual state requirements rather than applying uniform criteria, potentially benefiting states with greater developmental demands or lower revenue-generating capacities.
The issue underscores ongoing debates about fiscal federalism in Malaysia and the balance between central government control and state-level autonomy in resource distribution.