On the eve of Malaysia Day, Chief Minister Lim Guan Eng mused that Penang would have performed far better with decentralisation from the federal government.

Lim said Penang's GDP grew from RM39.2 billion in 2005 to RM62.6 billion in 2013, or six percent annually over eight years.
 
Much of the growth, he said, was concentrated in the years after 2008 when Pakatan Rakyat took over Penang from BN.
 
"If there was more decentralisation, no doubt Penang's GDP would have grown much more with our taxes focused on local development," Lim said during his speech at Penang Institute's 'Federalism in Malaysia: Design and Practise' conference in George Town today.
 
"Between 2001 and 2008, Penang paid RM25.7 billion in revenue but only received less than three percent in return," he added.
 
"If there was more balanced sharing, the development and growth in Penang would have been better. Despite getting only three percent, Penang still managed an annual growth of six percent," he stressed.
 
Lim said that in an evolving and maturing democratic society, over-centralisation of decision-making powers will not bode well with the aspirations of the people.
 
He added that over-centralisation also denies Malaysia the benefits of federalism like inter-state competition, collaboration and innovation.
 
These are dynamic features that would serve the country's multicultural best, he quipped.
 
However, a development policy concentrated in Klang Valley and now Iskandar in Johor (left) has resulted in a lack of infrastructure outside the region, he said.
 
"The covert and over-centralisation which includes appropriation of state powers and resources that had happened through the seconding of federal officers, establishment of federal oversight agencies and legislative control must be check and reversed," Lim said.
 
"I believe that we should celebrate our diversity not just at the religious and cultural level but also at the governance level, and this can be achieved through devolution of powers and local democracy," he added.
 
Lim said that the Penang Pakatan government is a firm believer in democracy, diversity and decentralisation, adding the state's future lies in a "vibrant federation of Malaysia".