Penang's lease payment to Kedah no longer matches current value, says Sultan

The Sultan of Kedah, Sultan Sallehuddin Sultan Badlishah, declared that the annual lease payment from Penang, set at RM10,000, is no longer appropriate given its current market value. This payment, along with a RM10 million special contribution, has been in place since 2018 but is based on an outdated agreement without reassessment according to the current economic conditions.

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I wish to remind all parties to respect the rights and sovereignty of Kedah State as enshrined in the Federal Constitution.

"I wish to remind all parties to respect the rights and sovereignty of Kedah State as enshrined in the Federal Constitution," the Sultan stated during the Kedah Sultan's 84th Birthday celebration. He emphasized that the lease payment received by his government is based on a long-standing agreement, but the current rate is significantly lower than what it should be. He called on the federal government to review the Penang lease payment rate to ensure it aligns with current values and the original intent of the agreement, ensuring fairness for Kedah.

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The Penang lease payment received by my government is based on an agreement that was made a long time ago. However, the rate paid at this time is far lower than the value it should be.

Furthermore, the Sultan stressed Kedah's sovereign rights to manage and explore strategic mineral resources, such as Rare Earth Elements (REE), noting the state's rich natural endowments. He urged the federal government to provide full cooperation, removing administrative obstacles that could hinder the state's development and resource exploration efforts. He warned against allowing political differences to impede the state's rights and needs.

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I want the Federal Government to review the rate of the Penang lease payment so that it is in line with current values and the original spirit of the agreement for the sake of justice for Kedah state.

Regarding Langkawi Island, the Sultan asserted its status as a strategic asset for Kedah and Malaysia. He advocated for its development to follow its unique identity, rather than imitating destinations like Phuket or Bali. He stressed the importance of preserving and sustainably developing this valuable asset, stating he would not compromise with any party that tarnishes Langkawi's image or reputation.

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It would be a great loss if this matter fails to be implemented, solely due to differences in political views and understanding, thus disregarding the rights and needs of the state.