Kedah MB: Suffering losses 'since God made Earth', water battle goes to court

The Kedah state government will haul its neighbour Penang to court to demand payment for water, said its Menteri Besar Muhammad Sanusi Md Nor.

Quizzed on the losses incurred by his state, the PAS leader replied: “This is from the time God created the Earth.”

However, Sanusi noted that since the figure is incalculable, the state government aimed to settle for a claim of RM50 million every year.

“It was Penang that asked us to go to the courts if we wanted payment. So we will do it. They suggested it, not that I want to take action,” he told reporters.

Sanusi was asked to comment on the water issue between Kedah and Penang during a press conference in Bangi, where leaders from four state governments under Perikatan Nasional had convened for a summit earlier today.

The four state governments are Kedah, Perlis, Terengganu and Kelantan, which are dubbed as State Governments 4 or SG4.

Last week, Penang Chief Minister Chow Kon Yeow reportedly told Kedah to go through legal means should the latter wish to seek payment for the raw water Penang takes from Sungai Muda.

Rare earth focus

During the press conference, Terengganu Menteri Besar Ahmad Samsuri Mokhtar told reporters that a special purpose vehicle (SPV) company established by the four states plans to focus on mining and processing rare earth elements (REE).

This is opposed to exporting the materials in their raw form, which he said would only yield a minimum revenue for the states.

“REE in raw form is very cheap. But if we process them to a more advanced form, we can sell them for a far higher price.

“Especially when it has become a pure element, the price can be hundreds or one thousand times over. So of course we will make processing these elements a priority,” he added.

According to Samsuri, they also welcome foreign investors who are involved in downstream production that use the materials to come and set up their factories in the four states.

On profit-sharing between the states, Samsuri said there will be a series of processes and considerations, including where they find a certain material.

“When there is profit after tax, then only we can calculate according to equity.

“This process has many layers. Let’s say we get RM10 billion, not necessarily it will be RM10 billion divided by four, it’s not as simple as that.

“The meaning of fair and equality must consider where we find a certain material, and the priorities given are different between states,” he explained.

Samsuri was responding to a question on whether it would be fair for the SPV company to divide its revenue among the four states equally.

Equal stake

Earlier today, Dr Mahathir Mohamad, who serves as an adviser to the SG4 group, announced that the states have set up SG4 Group Sdn Bhd to share wealth among them, including revenue from natural resources.

According to him, each state will have an equal stake.

“Each state owns 25 percent of the company, so even states that are far behind like Perlis can benefit. The company has been established and has already begun cooperation.

“For example, we believe the rare earth industry is a source of wealth. Rare earth elements are not equally distributed in every state; one state may have more than others.

“Therefore, within this one company, we distribute all the revenue equally,” he said at an earlier press conference during the summit.

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