Prime Minister Najib Razak's remark in Balik Pulau that Putrajaya may not approve the state's proposed Penang south reclamation project is shocking, said Penang Chief Minister Lim Guan Eng.

Lim asked why Najib chose to target Penang when the federal government had approved reclamation projects in other states such as Johor, Malacca and most recently, Kedah.

"Kedah even went ahead with the reclamation exercise without the approval of the Department of Environment (DOE), but no action has been taken," Lim told reporters in Penang.