Chow leaves Kedah lease payment issue to Federal government

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whatsapp image 2026 07 09 at 14.02.58

REVIEWING the lease payment made by the Federal Government to Kedah on behalf of Penang falls under the Federal Government’s purview, said Penang Chief Minister Chow Kon Yeow.

 

Speaking to reporters after visiting Northern Heart Hospital Penang today, Chow said the state administration had not held any discussions with Kedah on the matter as the payment did not involve Penang’s finances.

 

“It is a Federal Government issue and a constitutional matter,” Chow said.

 

He was responding to questions from reporters following a call by Kedah Sultan, Al Aminul Karim Sultan Sallehuddin Sultan Badlishah, on July 5, for the Federal Government to review the matter based on current rates, saying that the existing payment no longer reflected the spirit and original intent of the agreement.

 

The Kedah state government has sought an increase in the annual payment made by the Federal Government on behalf of Penang from RM10 million to RM100 million since 2018.

 

Chow added that Penang had never received any legal correspondence from Kedah regarding the matter. Previously, Kedah Menteri Besar Datuk Seri Muhammad Sanusi Md Noor announced that Kedah would prepare a legal team to initiate action over Kedah’s position on the issue.

 

Story by K.H. Ong

Pix by Law Suun Ting

Video by Alissala Thian