Prime Minister, Datuk Seri Anwar Ibrahim, announced that the Federal Government has re-channeled an allocation of RM16 billion to Johor throughout the period 2023 to 2025, which is more than the RM14 billion in revenue that the state contributed to the federal government during the same period.
He, who is also the Minister of Finance, said that based on the records of the Ministry of Finance, Johor contributed about RM14 billion in revenue to the Federation, but the government re-channeled a larger allocation through various development projects, management expenses and related programs.
According to him, this fact is important to provide a true picture of the Federal Government's commitment in ensuring that the development and well-being of the people of Johor continue to be given attention.
Anwar also explained that the allocation for operating expenses received by Johor has increased under the MADANI Government administration compared to the previous government.
If previously Johor received around RM6 billion to RM7 billion a year, the amount has increased to RM8.7 billion currently.
He said the increase proves the Federal Government's determination in strengthening the development of the state and improving the people's living standards.
Based on the data presented, Johor is the third largest state to receive Operating Expenditure (OE) and Development Expenditure (DE) allocations for 2026 after Sabah and Sarawak.
Operating Expenditure allocations for Johor increased from RM7 billion in 2022 to RM8.7 billion in 2026, while Development Expenditure increased from RM2.3 billion to RM4.8 billion in the same period.
In addition, Johor is also the second largest state to receive assistance under the Cash Contribution of Mercy (STR) and Basic Contribution of Mercy (SARA) after Selangor, thus demonstrating the state's important role in the development agenda and welfare of the people of this country.
