What specific legal basis does Kedah cite for its lease payment revision claim?

Question

Accepted Answer

Kedah Cites Article 167 of the Federal Constitution for Lease Payment Revision Claim

Kedah is seeking a revision of the lease payment rates from Penang, citing Article 167 of the Federal Constitution as the legal basis for its claim. The state has finalised legal documents to pursue this revision, which stems from annual payments made by the federal government to Kedah concerning Penang's cession in 1786. Kedah is aiming to increase these payments from the current RM10 million annually to RM100 million per year.
Legal Foundation in Article 167

Kedah's Mentri Besar, Datuk Seri Muhammad Sanusi Md Nor, has asserted that the payment obligation falls under Article 167 of the Federal Constitution. This article pertains to the Federation's responsibilities arising from treaties or agreements entered into before Malaysia's independence. Kedah's legal and research teams have reportedly completed a comprehensive review, with their findings endorsed by the State Executive Council, solidifying the legal groundwork for the claim.
Historical Context of the Lease Payments

The dispute centres on annual payments that originated from arrangements made at the time of Penang's cession in 1786. Historically, these payments were a form of compensation or lease payment to the state of Kedah for the territory that would become Penang. The federal government has been making these payments on Penang's behalf, a practice that has continued, albeit at a significantly lower rate than what Kedah now seeks.
Sultan of Kedah's Decree and Current Valuation

The push for a revision was reignited by a decree from the Sultan of Kedah, Sultan Sallehuddin Sultan Badlishah, on July 5. His Highness called for a review of Penang's lease payments to align them with current values, stating that the existing rates were substantially undervalued. This directive from the Sultan underscores Kedah's position that the historical payment amounts no longer reflect the economic realities or the value of the leased territory.
Penang's Stance and Federal Government's Role

Penang Chief Minister Chow Kon Yeow has indicated that the state will only respond once Kedah formally submits its claim. He has previously stated that the matter is primarily the responsibility of the federal government, as the payments do not originate from Penang's own funds. Penang has not engaged in discussions with Kedah on the issue and awaits formal legal correspondence before formulating a response.

Reading history

Hide →

This history is cleared when the page is closed.

What specific legal basis does Kedah cite for its lease payment revision claim?

Loading

Was this article helpful?

Helpful

Not helpful

Report an issue

1

0

0

Share with friends