Malaysia

Kedah may delay Penang lease claim documents till change of federal government

Sanusi said the state government had completed the necessary documents for the claim but was weighing whether to submit them now or wait for a more appropriate time.

Updated 1 month ago · Published on 10 Aug 2026 4:54PM

Kedah may delay Penang lease claim documents till change of federal government
Sanusi said Kedah would continue pursuing the matter based on historical documents - August 10, 2026

KEDAH is considering holding back the submission of documents linked to its demand for a review of the lease payment for Penang until there is a change in the federal government, said Menteri Besar Datuk Seri Muhammad Sanusi Md Nor.

Sanusi said the state government had completed the necessary documents for the claim but was weighing whether to submit them now or wait for a more appropriate time.

The move comes after Kedah claimed it had yet to receive a positive response from Putrajaya despite raising the matter over the past six years.

“We are considering whether to submit these documents now for discussion or wait until we become the federal government.

“This issue has been raised for six years. If they are willing to listen and think about it, then this should have been accepted as something that needs to be discussed,” he said.

He was responding to a supplementary question from Ayer Hitam assemblyman Azhar Ibrahim during the Kedah state assembly sitting at Wisma Darul Aman on Monday.

Azhar had asked about the state government’s next move if the federal government continued to reject Kedah’s demand over the Penang lease payment.

Sanusi said Kedah would continue pursuing the matter based on historical documents, records and legal arguments that the state believed supported its claim.

He added that the issue was not a new one and had been brought up repeatedly, but no satisfactory response had been received.

Sanusi also criticised the Penang government’s reaction to the matter, saying Kedah was only raising an issue concerning its own rights.

“Penang reacted a little more strongly. I do not know why. We were not disturbing them; we were talking about our own state. Maybe they felt uncomfortable,” he said.

He said matters involving legal claims should be assessed based on the law rather than political considerations.

“Sometimes the law is behind people, not in front,” he said.

Sanusi said he had previously raised the issue during PN’s 33-month administration of the federal government, including with the prime minister at the time.

However, he said Kedah had not submitted the claim formally then, as the state did not have the complete documentation it has today.

The Menteri Besar said the state had since completed studies involving historical records, agreements and payment documents related to the claim.

He added that the final report was presented to the Kedah executive council, state assemblymen and relevant MPs on April 15, 2025, before a legal team was appointed to study possible legal action.

Sanusi said Kedah would continue pursuing the matter through lawful avenues, including negotiations, court action and channels involving the institution of the Malay rulers.

He also called on the federal government to give serious consideration to the Sultan of Kedah’s views and the state’s request to review the payment based on current values.

Previously, Sanusi said the annual payment began at RM10,000 before being increased to RM10 million during Tun Dr Mahathir Mohamad’s administration.

He claimed the amount had not been reviewed since then. – August 10, 2026

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