[UPDATED] Not a single sen: Penang refuses to pay Kedah’s annual RM100 mil demand

GEORGE TOWN – Penang will not pay a single sen to Kedah after the neighbouring state sought RM100 million a year as lease compensation from the federal government to honour the colonial-era agreement.

Chief Minister Chow Kon Yeow said that based on the previous understanding and agreement, there is no need to do such a thing.

He also urged the federal government to ignore the request from Kedah.

Kedah Menteri Besar Muhammad Sanusi Md Nor said the amount sought is among Kedah’s wishlist for Budget 2022, which includes royalty payment, infrastructure, compensation for padi land, and loan write-offs, among others.

The sultan of Kedah leased the island and Seberang Prai to the British in 1786 and 1800 for 10,000 Spanish dollars annually.

“So, in ringgit terms, our compensation should be around RM100 million, not RM10 million. We are fair here,” he said in a press conference after chairing the weekly state exco meeting here.

Kedah is also seeking another RM100 million from the federal government as compensation for gazetting part of the Ulu Muda Forest water catchment as a protected area.

This is because of the state’s inability to develop the area seeing it is the main catchment area to supply water in the northern region.

Sanusi said that Kedah also wants the federal government to resolve the beach erosion at Pantai Merdeka in Sg Petani and Tg Dawai in Kuala Muda by spending RM34.2 million under the Drainage and Irrigation Department to repair the coastline.

The state will also seek for the National Water Services Commission to develop more infrastructure to upgrade the water supply in the rural localities here.

As Kedah supplies 42% of the country’s rice supply, Sanusi said, the state will seek RM117 million annually from Putrajaya to not convert more land for commercial, residential, or industrial use.

“Kedah loses up to RM1.7 billion in land premiums annually for maintaining its padi fields. We need compensation for it. We have worked out a sum of RM117 million, which is 10% of the actual land value of the 2,200ha that is home to padi fields.”

Additionally, Sanusi wants the federal government to write off loans worth around RM50 million for farming done in the state earlier. – The Vibes, October 27, 2021