Malaysia

Kedah seeks higher federal lease payments, not Penang’s return, says PAS

PAS insists Kedah is not attempting to reclaim Penang but merely asserting its historical right to higher federal lease royalties

Updated 11 months ago · Published on 17 Nov 2025 9:13AM

Kedah seeks higher federal lease payments, not Penang’s return, says PAS
The party rejects political claims that the state aims to seize back the island - November 17, 2025

by Ian McIntyre

THE Penang branch of Parti Islam Se-Malaysia (PAS) has moved to dispel claims that Kedah is attempting to wrest the state of Penang, insisting instead that the northern state is pressing for increased federal lease payments grounded in historical arrangements predating independence.

Penang PAS information chief Anas Soffy Abd Wahid said the matter had been politically distorted, arguing that Kedah Chief Minister Datuk Seri Muhammed Sanusi Md Nor was simply seeking what the state considers a fairer sum from Putrajaya.

“Kedah’s demand is not to take back Penang, as portrayed by DAP Penang’s political narrative, but to seek annual lease royalty payments from the Federal Government, not from the Penang government,” Anas said, reiterating that the state’s position had been misrepresented.

The controversy resurfaced after Sanusi told his state legislative assembly that Kedah was in the final stages of appointing a legal team to pursue the matter in court.

Historically, Kedah leased Penang Island and a strip of the mainland to the British East India Company through Captain Francis Light, who identified the island’s strategic potential as a port at the northern gateway of the Straits of Malacca, now one of the world’s busiest maritime corridors.

Since independence in 1957, the British obligation to pay Kedah RM10,000 annually has been assumed by the Federal Government, as Penang was handed over to the Federation as part of the Straits Settlements.

In 2018, after intervention from then prime minister Tun Dr Mahathir Mohamad, the payment was revised to RM10 million in the form of an honorarium.

Kedah is now asking for a far larger annual lease royalty of RM100 million from the Federal Government. According to Anas, the claim is rooted in continuity of historical rights rather than an attempt to redraw borders.

He maintained that Penang was “not the absolute property of the British, nor of the Federal Government”, but “leased land belonging to Kedah, handed over to be administered by the Federal Government of Malaya — and not a transfer of ownership by Kedah.”

He rejected suggestions that the dispute touches on racial politics or territorial sovereignty. “It is about the historical rights of the state of Kedah, which have never disappeared despite attempts to conceal them with countless excuses.

Penang remains a state under the Federation, but Kedah’s rights as the original landowner have never been erased,” he said.

The issue is expected to surface when the Penang Legislative Assembly convenes its Budget session later today. - November 17, 2025

Spotlight

Malaysia

Haze: MOH issues strict guidelines to ensure public health

Cocaine in shoes: Invited on vacation to Japan, only to end up as drug mules

Malaysia

PDRM awaits Philippine confirmation on alleged politician’s role in 521kg drug seizure

Malaysia

Elderly man dies after being beaten repeatedly

Malaysia

Preliminary report on helicopter crash in Long Lellang released; probe ongoing

Malaysia

‘Am I not the Tuanku?’ Tuanku Muhriz tells off Ismail Lasim (video)

By Alfian Z.M. Tahir

Malaysia

Donating to Najib: ‘One of the most foolish things I have seen’ – UM student

Malaysia

AKPS officer was seeking divorce before alleged killing, says brother

By Alfian Z.M. Tahir

You may be interested

Malaysia

‘Am I not the Tuanku?’ Tuanku Muhriz tells off Ismail Lasim (video)

By Alfian Z.M. Tahir

Malaysia

Adoption Bill seeks to lower age limit under law from 21 to 18

By Alfian Z.M. Tahir

Malaysia

Penang Islamic Affairs Department probes Muslim workers’ involvement in temple clean-up

By Alfian Z.M. Tahir

Malaysia

Senior political party leader caught for khalwat - (updated)

Malaysia

Haze: MOH issues strict guidelines to ensure public health

Malaysia

Is Malaysia 'soft' in tackling the haze? The government has done everything it possibly can – PM Anwar

Malaysia

Parents told to check Malaysian Conformity mark on squishy toys before purchase

Malaysia

MRT Kajang Line delayed after attempted cable theft, track intrusion