Kedah MB: Legal Case Over Penang Lease Nearly Ready
14 Jan 2026 • 3:00 PM MYT
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Badrulamin Luthfi
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Kedah Menteri Besar Datuk Seri Muhammad Sanusi Md Nor delivers a speech at the Kedah Civil Servants Assembly at Dataran Wisma Darul Aman.
Image credit : harakahdaily
The Kedah state government is confident that legal proceedings related to its claim over Penang can be initiated within the year, following the completion of an extensive review of historical and legal documents.
Kedah Menteri Besar Datuk Seri Muhammad Sanusi Md Nor said the state’s legal team is currently determining the most appropriate legal approach before filing the case in court. He explained that the process has taken time due to the large volume of documents that must be carefully examined and the need to ensure all procedures are conducted thoroughly and systematically.
“I expect the case to be brought to court before the end of this year. Our legal team is working on it. Legal processes involve many technical aspects, and while we are ready, we are still considering which legal angle to pursue,” he said during a press conference after attending the Kedah State Civil Servants Assembly at Dataran Wisma Darul Aman.
He stressed that the state government is not seeking confrontation but aims to handle the matter in an orderly and responsible manner. According to him, years of research and document collection were necessary to support Kedah’s position.
Also present at the event were Kedah State Secretary Datuk Seri Norizan Khazali, members of the state executive council, and federal and state civil servants.
In his address, Sanusi speaked the importance of explaining the issue of Penang’s lease transparently to all relevant parties. He reiterated Kedah’s long-standing position that Penang Island and Seberang Perai were historically part of the Kedah Sultanate and were taken through deceit during the colonial era beginning on 9 August 1786.
He said that on 11 August 1786, Francis Light raised the British Union Jack on land belonging to the Sultan of Kedah, an act he described as unlawful. Efforts by Sultan Abdullah Mukarram Shah to reclaim Penang in 1791 were unsuccessful. Subsequently, on 7 July 1800, Sultan Dhiauddin was compelled to sign an agreement ceding part of Seberang Perai to the British, which was later renamed Province Wellesley.
Sanusi noted that the original land area ceded in Seberang Perai was limited, but it later expanded significantly to its current size of 751 square kilometres, or approximately 75,100 hectares.
He also outlined the historical lease payments agreed upon. Initially, the lease value for Penang was set at 6,000 Spanish dollars, which he claimed was never paid by Francis Light, leading to conflict in 1791. Following the acquisition of Seberang Perai, the lease was increased by 4,000 Spanish dollars, bringing the total to 10,000 Spanish dollars.
After Malaysia’s independence, the lease payment was converted to RM10,000 annually. In 2018, an additional RM10 million was added, making the current annual lease payment RM10,010,000.
The Kedah government maintains that these historical agreements and developments form the basis of its legal claim, which it plans to pursue through the courts in due course.
Kedah Menteri Besar Datuk Seri Muhammad Sanusi Md Nor said the state’s legal team is currently determining the most appropriate legal approach before filing the case in court. He explained that the process has taken time due to the large volume of documents that must be carefully examined and the need to ensure all procedures are conducted thoroughly and systematically.
“I expect the case to be brought to court before the end of this year. Our legal team is working on it. Legal processes involve many technical aspects, and while we are ready, we are still considering which legal angle to pursue,” he said during a press conference after attending the Kedah State Civil Servants Assembly at Dataran Wisma Darul Aman.
He stressed that the state government is not seeking confrontation but aims to handle the matter in an orderly and responsible manner. According to him, years of research and document collection were necessary to support Kedah’s position.
Also present at the event were Kedah State Secretary Datuk Seri Norizan Khazali, members of the state executive council, and federal and state civil servants.
In his address, Sanusi speaked the importance of explaining the issue of Penang’s lease transparently to all relevant parties. He reiterated Kedah’s long-standing position that Penang Island and Seberang Perai were historically part of the Kedah Sultanate and were taken through deceit during the colonial era beginning on 9 August 1786.
He said that on 11 August 1786, Francis Light raised the British Union Jack on land belonging to the Sultan of Kedah, an act he described as unlawful. Efforts by Sultan Abdullah Mukarram Shah to reclaim Penang in 1791 were unsuccessful. Subsequently, on 7 July 1800, Sultan Dhiauddin was compelled to sign an agreement ceding part of Seberang Perai to the British, which was later renamed Province Wellesley.
Sanusi noted that the original land area ceded in Seberang Perai was limited, but it later expanded significantly to its current size of 751 square kilometres, or approximately 75,100 hectares.
He also outlined the historical lease payments agreed upon. Initially, the lease value for Penang was set at 6,000 Spanish dollars, which he claimed was never paid by Francis Light, leading to conflict in 1791. Following the acquisition of Seberang Perai, the lease was increased by 4,000 Spanish dollars, bringing the total to 10,000 Spanish dollars.
After Malaysia’s independence, the lease payment was converted to RM10,000 annually. In 2018, an additional RM10 million was added, making the current annual lease payment RM10,010,000.
The Kedah government maintains that these historical agreements and developments form the basis of its legal claim, which it plans to pursue through the courts in due course.
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