JOHOR BARU: The Johor government has urged the federal government to return at least 25 per cent of the income tax revenue collected from the state, in line with a royal directive from the The Regent of Johor, Tunku Mahkota Tunku Ismail Sultan Ibrahim.
The proposed revenue share is intended to fast-track essential infrastructure upgrades, improve healthcare delivery, enhance flood mitigation efforts and expand social welfare services across the state.
Johor Menteri Besar Datuk Onn Hafiz Ghazi said the proposal was rooted in economic reality and state interest, not politics.
“Johor has consistently proven itself to be one of the top contributors to Malaysia’s economy.
“We are not asking for handouts… we are asking for a fair return to continue driving national progress,” he said in a post uploaded on his Facebook today.
Onn Hafiz added that the request reflected Johor’s position as a strategic economic engine, not merely a statistical contributor to federal coffers.
In the first quarter of 2025, Johor recorded RM30.1 billion in approved investments, the highest in the country.
In 2024, Johor also led in GDP growth with 6.4 per cent, exceeding the national average of 5.1 per cent.
In agriculture, the state posted RM27.2 billion in sales, the highest nationwide.
“If just a quarter of what we contribute can be reinvested into Johor, the returns will benefit not only our people but the entire country,” he added.
Onn Hafiz said the proposal was made in the spirit of cooperation with Putrajaya, not confrontation, and aligned with a broader vision of fiscal equity and shared prosperity.
Yesterday, Tunku Ismail urged the federal government to return 25 per cent of Johor’s income tax revenue, citing the delayed opening of Pasir Gudang Hospital as a clear sign of underfunding.
Tunku Ismail expressed disappointment over the postponement of Pasir Gudang Hospital’s opening, which was initially scheduled to begin phased operations next month but has now been delayed to January next year.
© New Straits Times Press (M) Bhd
