Penang Government Declines Comment On Kedah Lease Payment Claim For Now

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The Penang government will not comment on Kedah’s proposed review of the Penang lease payment until it receives the state’s official claim.

Chief Minister Chow Kon Yeow said the state government has yet to receive any formal details regarding the proposed demand and that it would be premature to respond at this stage.

“We will wait. That is our position for now,” he said during a press conference at the Chief Minister’s Office in Komtar on Wednesday.

Chow said the state would ensure it is prepared from a legal standpoint by reviewing relevant documents and other related matters, including issues that could affect national unity. However, he stressed that Penang does not yet know the exact nature of Kedah’s claim.

He was responding to remarks by Kedah Menteri Besar Datuk Seri Muhammad Sanusi Md Nor, who recently said the state had completed all historical research, legal studies and supporting documents for its proposed review of Penang’s lease payment, and was only waiting for the right time to proceed.

According to Muhammad Sanusi, the state’s research and legal teams have completed a comprehensive study to support the claim before moving to the next stage.

Addressing concerns that the issue could strain relations between states or undermine national unity, Chow said it was too early to make such assumptions.

“We should first wait and see what exactly is being claimed. The state government will respond after the matter is formally submitted, whether through the courts or directly to the state government, if necessary,” he said.

On July 5, the Sultan of Kedah, Sultan Sallehuddin Sultan Badlishah, called on the Federal Government to review the current lease payment for Penang based on present-day values while upholding the original intent and spirit of the agreement.

The Ruler said the annual lease payment currently received by Kedah is significantly lower than its appropriate value and stressed that the state’s rights and sovereignty, as provided under the Federal Constitution, should be respected by all parties.

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