Penang exco pushes back as Kedah in final stages to sue for higher lease rate

Penang state executive councillor Wong Hon Wai chided Sanusi Nor over his plan to file a legal challenge to get Putrajaya to pay higher royalty to Kedah in relation to the purported lease payment from the island state.

“It’s regrettable that the Kedah menteri besar is harping on something which is over 200 years old.

“Sanusi should use his energy to attract investments and develop Kedah instead of harping on a polemic which will bear no fruit,” Wong (above) said in a statement today.

Yesterday, Sanusi said his administration is in the final stages of selecting a legal team in a bid to get a higher royalty over Penang’s lease from the state.

He is eyeing to get RM100 million from the federal government, adding that the rate has not been revised since 1786.

Sanusi said his administration has already appointed several historians and legal experts to conduct a comprehensive study of the matter.

“And the team has completed their research, and the final report was tabled to the state executive council, assemblypersons, and related MPs on April 15,” Berita Harian reported him as saying.

Equal status

Unimpressed, Wong stressed that Penang’s status as a sovereign state is stated clearly in the Federal Constitution, with Article 1(2) indicating its equal status with other states in forming the federation.

“This recognition is not only a legal one, but also signifies Penang’s importance in terms of history and the formation of the Federation of Malaya.

“And the Federal Constitution supersedes any other documents agreed upon prior to that,” he added.

Since taking office after the previous general election, Sanusi has frequently claimed that Penang belongs to Kedah, and has even urged the federal government to amend the Constitution to back his claims.

Prime Minister Anwar Ibrahim, however, hit back and urged Sanusi to understand the Constitution.

“Sometimes, when a leader speaks, he has to understand the Constitution; he has to understand what an agreement is.

“The agreement may have been signed 300, 1,000 years ago, (but) there is the final agreement of establishing the Federation of Malaya, and that is clear.

“To say things in terms of political drama is another matter, but as menteri besar, I think it is only appropriate to be bound by legislation,” the Tambun MP said, adding that the Malay rulers recognised both Kedah and Penang’s sovereignty.

Not backing down

However, Sanusi has yet to back down on his claims and in 2024, demanded Putrajaya hike the annual lease payment for Penang, from RM10 million to RM100 million.

“If you ask me, I will demand RM300 million because the land value and the island are strategic.

“Don’t (you) ever say that I don’t want to reclaim Penang because it (Penang) has always belonged to Kedah.

“Who can erase history? Who dared to erase history? That is a fact that must be acknowledged,” the New Straits Times reported the Jeneri lawmaker as saying.

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