GEORGE TOWN, July 9 — Penang Chief Minister Chow Kon Yeow has deferred the dispute over lease payments to the Kedah state government to Putrajaya, maintaining that the matter falls entirely under federal jurisdiction.
While the federal government has paid an annual honorarium of RM10 million to Kedah on behalf of Penang since 2018, the Kedah state government is demanding a steep increase to RM100 million annually.
Speaking to reporters today after visiting the Northern Heart Hospital Penang, Chow clarified that the state administration has held no discussions with its neighbour, as the payments do not involve the state’s own coffers.
“This is an issue for the federal government. It is a constitutional matter,” he said.
The chief minister was responding to a call by the Sultan of Kedah, Al Aminul Karim Sultan Sallehuddin Sultan Badlishah, for the federal government to review the lease payments based on current market rates.
The Sultan noted that the existing payments no longer reflect the original intent or spirit of the agreement, urging Putrajaya to ensure Kedah’s constitutional rights and sovereignty are respected.
When asked if the Penang government supports the Sultan’s call for a review, Chow again deferred to Putrajaya.
“I will leave that answer to the federal government,” he replied.
Addressing claims by Kedah Menteri Besar Datuk Seri Muhammad Sanusi Md Nor regarding the assembly of a legal team, Chow said that Penang has never received any legal correspondence from Kedah on the matter.
When pressed on whether any such letters had arrived, he replied simply, “Never.”
The Sultan of Kedah also urged the federal government to remove administrative obstacles hindering the development of rare earth elements (REE) resources. In response, Chow reiterated that the management and exploration of such resources also fall under federal authority.
