
OPINION | Siam, Not Kedah, Lost Penang: Why Sanusi’s 200-Year-Old Claim Holds No Legal Ground in Modern Malaysia
16 Nov 2025 • 12:30 PM MYT

Kpost
Operation Consultant who is a keen observer of politics and current affairs

Image: Chow Kon Yeow (L) , Muhammad Sanusi Md Nor (R) / Photo Credit: SinarHarian
The fiery debate over Kedah’s renewed claim on Penang and its demand for an increased annual “honorarium” payment has reignited a centuries-old territorial controversy - but history and the law may not be on Kedah’s side.
Penang Heritage Trust President Clement Liang recently dismantled the popular belief that Kedah had the sovereign right to lease Penang to the British in 1786. According to Liang, Kedah itself was under Siamese rule - known then as Saiburi - and had no legal authority to negotiate directly with the British. He noted that Thai historical records and exhibits at the National Museum in Bangkok clearly identify Penang (Koh Mak) as the first territory Siam lost to a Western power.

Image: Clement Liang / Photo Credit: Commonwealthofworldchinatowns
Source:
https://www.freemalaysiatoday.com/category/nation/2021/10/29/siam-not-kedah-lost-penang-to-the-british-says-expert
Liang explained that Kedah’s defiance of Siam’s control led to repeated raids, culminating in the 1821 Perang Bisik, which saw Kedah’s royal court destroyed and thousands of people fleeing to Province Wellesley. The 1826 Burney Treaty between Siam and the British later formalised the arrangement: Kedah, Perlis, Terengganu, and Pattani were recognised as Siamese provinces, while Penang and Province Wellesley became official British territories, ending any notion of a “leasehold” arrangement.
It was not until 1909, through the Anglo-Siamese Treaty, that Kedah and the other northern Malay states were transferred to British control. Penang, however, had long been governed by the British and was never restored to Kedah. Liang stressed that Kedah’s historical instability and lack of recognised sovereignty make any modern claim over Penang invalid.

Image: Haniff Khatri Abdullah / Photo Credit: SinarHarian
Echoing this, lawyer Haniff Khatri Abdullah noted that Kedah relinquished all rights to Penang when its ruler signed the Federation of Malaya agreements in 1948 and 1957. These legal documents contain no clauses granting Kedah territorial claims or lease rights over Penang. “The Federal Constitution recognises Penang as an equal state within Malaysia,” Haniff said.
Echoing this, lawyer Haniff Khatri Abdullah noted that Kedah relinquished all rights to Penang when its ruler signed the Federation of Malaya agreements in 1948 and 1957. These legal documents contain no clauses granting Kedah territorial claims or lease rights over Penang. “The Federal Constitution recognises Penang as an equal state within Malaysia,” Haniff said.

Image: Ramkarpal Singh (L) , RSN Rayer:(R) / Photo Credit: Malaymail , SuaraMerdeka
The Dewan Rakyat was told that the Federal Constitution overrides any historical claim that Penang belongs to Kedah, reaffirming Penang’s sovereignty as an equal state within Malaysia. Ramkarpal Singh (PH-Bukit Gelugor) and RSN Rayer (PH-Jelutong) dismissed opposition MP Ahmad Tarmizi Sulaiman’s (PN-Sik) call to review Penang’s sovereignty, citing constitutional provisions that clearly define Penang as part of the Federation.
The Dewan Rakyat was told that the Federal Constitution overrides any historical claim that Penang belongs to Kedah, reaffirming Penang’s sovereignty as an equal state within Malaysia. Ramkarpal Singh (PH-Bukit Gelugor) and RSN Rayer (PH-Jelutong) dismissed opposition MP Ahmad Tarmizi Sulaiman’s (PN-Sik) call to review Penang’s sovereignty, citing constitutional provisions that clearly define Penang as part of the Federation.

Image: Ahmad Tarmizi Sulaiman / Photo Credit: MalaysiaGazette
Tarmizi had argued that Francis Light’s 1786 occupation of the island was unlawful and that Kedah’s historical rights should be reexamined.
His remarks came as Kedah Menteri Besar Muhammad Sanusi Md Nor announced plans to appoint a legal team to pursue the state’s claim, following Sultan Sallehuddin’s call for clarification on Penang’s “lease” status.
Despite this, Kedah Menteri Besar Muhammad Sanusi Md Nor has renewed his push to claim a higher “lease payment” - increasing it from the current RM10 million to RM100 million annually - arguing that Penang remains on lease. Historically, the federal government paid RM10,000 annually on behalf of Penang before raising the sum to RM10 million in 2018.
Penang Chief Minister Chow Kon Yeow maintains that the state was permanently ceded after independence and that such claims are both baseless and seditious. He has dismissed them as a political stunt, reiterating his earlier challenge to Sanusi: “See you in court.”
Government leaders and constitutional experts have been unequivocal: the Federal Constitution trumps colonial-era history. Article 1(2) explicitly lists Penang as a sovereign state of the Federation, and any claim to the contrary is constitutionally void.
His remarks came as Kedah Menteri Besar Muhammad Sanusi Md Nor announced plans to appoint a legal team to pursue the state’s claim, following Sultan Sallehuddin’s call for clarification on Penang’s “lease” status.
Despite this, Kedah Menteri Besar Muhammad Sanusi Md Nor has renewed his push to claim a higher “lease payment” - increasing it from the current RM10 million to RM100 million annually - arguing that Penang remains on lease. Historically, the federal government paid RM10,000 annually on behalf of Penang before raising the sum to RM10 million in 2018.
Penang Chief Minister Chow Kon Yeow maintains that the state was permanently ceded after independence and that such claims are both baseless and seditious. He has dismissed them as a political stunt, reiterating his earlier challenge to Sanusi: “See you in court.”
Government leaders and constitutional experts have been unequivocal: the Federal Constitution trumps colonial-era history. Article 1(2) explicitly lists Penang as a sovereign state of the Federation, and any claim to the contrary is constitutionally void.

Image: Wong Hon Wai / Photo Credit: Malaymail
As Penang state exco Wong Hon Wai aptly put it, “The 1957 Constitution marked a new chapter that supersedes all documents before it. Raising a 200-year-old issue only distracts from Kedah’s pressing need for real development.”
In short, the history books and the Federal Constitution speak the same truth - Penang belongs to Malaysia, not Kedah nor Siam. Sanusi’s repeated claims may stir emotions, but legally, they hold no water.
As Penang state exco Wong Hon Wai aptly put it, “The 1957 Constitution marked a new chapter that supersedes all documents before it. Raising a 200-year-old issue only distracts from Kedah’s pressing need for real development.”
In short, the history books and the Federal Constitution speak the same truth - Penang belongs to Malaysia, not Kedah nor Siam. Sanusi’s repeated claims may stir emotions, but legally, they hold no water.
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