Sanusi says Kedah may hold Penang ‘lease’ claim until Perikatan takes Putrajaya

Kedah's Chief Minister has suggested delaying the state's long-standing claim for higher Penang "lease" payments until a future Perikatan Nasional (PN) government takes control of the federal administration, according to The Star. Muhammad Sanusi Md Nor stated that Putrajaya has not yet responded positively to Kedah's demand despite the state's pursuit of a review over the past six years.

Sanusi warned that if the federal government remains uncooperative, Kedah may take steps to alter the federal government itself. The Kedah leader explained that his state has completed a comprehensive study by historians and legal experts, which included examining historical documents, agreements, payment records, and the legal and constitutional basis for its claim.

This final report was presented to state leaders on April 15 last year. Kedah is demanding RM300 million annually from the federal government, which has currently been paying the state a special contribution of RM10 million annually since 2018, in addition to the longstanding RM10,000 payment under Article 167(7) of the Federal Constitution.

Penang's Chief Minister, Chow Kon Yeow, recently affirmed that the issue falls under federal jurisdiction and that his government has not received any legal correspondence from Kedah regarding the claim.