FMT:
Kedah finalising legal team over Penang ‘lease’ payment
Menteri besar Sanusi Nor says the team completed its study and presented the final report to the state executive council members, assemblymen and relevant MPs on April 15

Kedah menteri besar Sanusi Nor previously demanded RM100 million a year from the federal government as a ‘lease payment’ for Penang island and Seberang Perai.
PETALING JAYA: Kedah is in the final phase of appointing a legal team to initiate court action over the state’s status and relationship with Penang, says menteri besar Sanusi Nor.
He said this comes after Sultan Sallehuddin Sultan Badlishah in 2023 called for Kedah’s history, especially the question of Penang being “leased”, to be transparently clarified.
Sanusi said the state government subsequently formed a research team of history and legal experts to thoroughly investigate the matter, Berita Harian reported.
“This includes carrying out in-depth analyses, preparing documents and initiating legal proceedings in court,” he was quoted as saying while tabling Kedah’s 2026 budget at the state assembly today.
“The team has completed its study, and the final report was presented to the state executive council members, state assemblymen, and relevant MPs on April 15.
“God willing, further developments will follow within the next month or two.”
In 2021, Kedah demanded RM100 million a year from the federal government as a “lease payment” for Penang island and Seberang Perai.
Sanusi said the federal government had been paying RM10,000 annually on Penang’s behalf for decades, before raising the sum to RM10 million in 2018 after the matter was raised by Sultan Sallehuddin at the Conference of Rulers.
He also argued that both territories were leased by the Kedah sultanate to the British in 1791 for 10,000 Spanish dollars.
However, the Penang government maintains that the sultanate effectively ceded the territories after Merdeka.
Some historians have also pointed out that no formal lease document exists, suggesting the “lease” narrative may have stemmed from a historical misunderstanding.
He said this comes after Sultan Sallehuddin Sultan Badlishah in 2023 called for Kedah’s history, especially the question of Penang being “leased”, to be transparently clarified.
Sanusi said the state government subsequently formed a research team of history and legal experts to thoroughly investigate the matter, Berita Harian reported.
“This includes carrying out in-depth analyses, preparing documents and initiating legal proceedings in court,” he was quoted as saying while tabling Kedah’s 2026 budget at the state assembly today.
“The team has completed its study, and the final report was presented to the state executive council members, state assemblymen, and relevant MPs on April 15.
“God willing, further developments will follow within the next month or two.”
In 2021, Kedah demanded RM100 million a year from the federal government as a “lease payment” for Penang island and Seberang Perai.
Sanusi said the federal government had been paying RM10,000 annually on Penang’s behalf for decades, before raising the sum to RM10 million in 2018 after the matter was raised by Sultan Sallehuddin at the Conference of Rulers.
He also argued that both territories were leased by the Kedah sultanate to the British in 1791 for 10,000 Spanish dollars.
However, the Penang government maintains that the sultanate effectively ceded the territories after Merdeka.
Some historians have also pointed out that no formal lease document exists, suggesting the “lease” narrative may have stemmed from a historical misunderstanding.
Better study the long process how Johore lost Singapore in the 19th century. Could be motherload there.
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