In Kuala Lumpur, researcher Muna ‘Adila Che Rime recently criticized Malaysia’s federal system, arguing that unequal Aidilfitri bonus distributions among states expose deep imbalances. She highlighted how the Federal Government’s dominance over state finances—rooted in a skewed constitutional revenue split—forces states into debt, undermining their autonomy. Muna pointed to Terengganu, where federal control stalled rare earth element industry plans, stifling job growth. She also questioned aid to opposition states, often funneled through federal agencies rather than state governments, leaving Chief Ministers powerless. Calling for fairer wealth distribution or systems like ‘equalization payments,’ Muna warned that centralized power continues to widen economic gaps, especially for states like those on the East Coast.
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