What is the proposed new annual lease payment amount Kedah seeks?

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Kedah Seeks RM100 Million Annual Lease Payment for Penang

Penang will await a formal submission from Kedah regarding its revised lease payment claim before formulating a response. Kedah is seeking an increase in the annual lease payment for Penang from the current RM10 million to RM100 million per year. This renewed push by Kedah follows a decree from the Sultan of Kedah, Sultan Sallehuddin Sultan Badlishah, calling for a review of the existing lease payment rates.
Formal Claim Awaited

Penang Chief Minister Chow Kon Yeow reiterated that the state government is waiting to receive a formal claim from Kedah. He indicated that Penang has not yet received any official demand or legal correspondence concerning the matter. Until such a formal submission is made, Penang considers any discussion or comment on the specifics of the claim premature.
Historical Context of Payments

The dispute centres on annual payments made by the federal government to Kedah, stemming from arrangements established at the time of Penang's cession in 1786. Since 2018, the federal government has been disbursing an annual honorarium of RM10 million to Kedah on behalf of Penang. Kedah's current position advocates for a significant revision of this amount to reflect current values.
Legal Basis Cited by Kedah

Kedah Mentri Besar Datuk Seri Muhammad Sanusi Md Nor has stated that the payment obligation is grounded in Article 167 of the Federal Constitution. This article pertains to the Federation's responsibilities arising from treaties predating independence. Kedah asserts that its legal and research teams have finalised the necessary documentation for this claim, with endorsement from the State Executive Council.

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What is the proposed new annual lease payment amount Kedah seeks?

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