Why did Penang receive minimal flood aid despite GST contributions?

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Penang Received Minimal Flood Aid Due to Discriminatory Federal Allocation

Penang received a disproportionately small amount of federal flood aid, amounting to just RM35,500, despite contributing significantly to the national Goods and Services Tax (GST) collection. Chief Minister Lim Guan Eng stated that this minimal disbursement, representing only 0.015% of the RM235 million distributed nationwide between 2013 and 2017, was discriminatory and an insult to the people of Penang. He argued that the federal government should return 50% of the GST collected from each state to that state, citing Penang's GST contribution of RM5.56 billion from 2015 to October of the current year.
Federal Flood Aid Discrepancy

Between 2013 and 2017, the federal government disbursed a total of RM235 million to flood victims across Malaysia. Within this period, Penang received a mere RM35,500, which constituted a mere 0.015% of the total aid distributed. This allocation was made in the aftermath of severe floods that impacted Penang significantly, prompting calls for equitable assistance.
Penang's GST Contribution

Penang's GST collections have been substantial since the tax's introduction in 2015. From 2015 until October of the current year, the state reportedly collected RM5.56 billion in GST. Lim Guan Eng highlighted this figure in his argument for a fairer distribution of federal funds, suggesting that the state's contributions were not being adequately reflected in the aid received.
Call for Fairer GST Returns

Lim Guan Eng advocated for the federal government to return 50% of the GST collected from each state. He drew a comparison to Australia, where 100% of GST collected per state is returned to that state. This proposal aims to ensure that states receive a more equitable share of the revenue they generate, particularly for essential services and disaster relief.
Allegations of Discriminatory Treatment

The Chief Minister explicitly labelled the federal government's flood aid disbursement to Penang as discriminatory. He argued that the minuscule amount received by the state, especially given its significant GST contributions and the severity of the recent floods, indicated unfair treatment compared to other states. This sentiment underscores a broader call for impartiality in federal resource allocation.

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Why did Penang receive minimal flood aid despite GST contributions?

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