Penang Chief Minister Chow Kon Yeow publicly denied claims that the state’s cash reserves were nearly depleted and in deficit, confirming on August 29 that reserves stood at RM616 million in the first five months of 2026 [1, 2]. He said, "We are closely monitoring the state’s cash reserve position. Previously, there were expectations that it would decline to RM50 million, but that did not happen." [1]
The state recorded a financial surplus in 2025, contradicting assertions of poor fiscal health [1, 2]. Chow urged critics to verify the latest figures, saying, "I urge those making such claims to check the latest figures" [2].
The rise in reserves has been linked to increased revenue collection, according to state sources [2]. The Penang government plans to continue exploring new revenue streams to maintain its strong financial position [2].
Chow pledged to restore Penang’s cash reserves to RM1 billion by the end of his term as chief minister. "Currently, our financial situation remains positive and I will remain committed in bringing the state reserves back up to RM1 billion before the end of my term as chief minister," he said [2].
Claims about Penang’s financial struggles surfaced amid comparisons with Johor’s cash reserves under the Barisan Nasional government [1]. Chow’s statement on June 8 formally rejected those deficit allegations and reconfirmed Penang’s healthy fiscal status [1, 2].
