SG4 Proposes Fairer Formula for State Development Allocations

The SG4 coalition has called for a fairer and more transparent system for distributing federal development funds, arguing that allocations should not be influenced by political considerations.

Terengganu Menteri Besar Datuk Seri Dr Ahmad Samsuri Mokhtar said closer cooperation between federal and state governments was necessary to ensure every state had a fair opportunity to benefit from national economic growth. He proposed a fiscal equalisation and inter-state development formula to make funding more equitable.

SG4 Wants Economic Growth to Deliver Tangible Benefits for Households

Ahmad Samsuri said national progress should not be measured by gross domestic product, investment and exports alone. Rising housing costs, food prices and transport expenses must also be considered when assessing whether economic growth is improving people’s lives.

SG4 brings together Terengganu, Kelantan, Kedah and Perlis, each with distinct economic strengths, including oil and gas, agriculture, semiconductors, halal industries, cross-border trade and renewable energy.

He also highlighted opportunities to develop downstream industries using the region’s natural resources, including rare earth elements, rather than relying on raw-material exports. Another proposal was an SG4 Islamic finance hub to connect Shariah-compliant capital with energy, infrastructure and small-business projects.

Ahmad Samsuri said fairness and stronger institutional capacity would be crucial to expanding opportunities, raising household incomes and ensuring sustainable prosperity across the four states.

SG4 is proposing a fairer development funding formula to help ensure all states share more evenly in Malaysia’s economic growth.

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