Malaysia's four opposition states unite to beef up their economies

SG4 bloc sets up firm to seek investments, and agrees to share the earnings equally

- Hazlin Hassan

Four Malaysian states controlled by federal opposition alliance Perikatan Nasional (PN) have closed ranks to jointly beef up their economies, as their leaders move to strengthen their grip on the Malay-belt states.

With Tun Dr Mahathir Mohamad as their adviser, the states of Terengganu, Kelantan, Kedah and Perlis which call themselves the State Government 4 (SG4) - have formed investment firm SG4 Group to seek investments, including in the mining of rare earth elements (REE).

"We are not undermining or opposing the federal government. We are creating this to develop these four states because they are not getting their fair share of the wealth," Dr Mahathir, 99, told a news conference at the first SG4 Summit on Sept 2. He was referring to the revenues collected by the federal government from various taxes, and generated by minerals and commodities resources, of which a portion is then allotted to the different states.

Each PN-led state will hold a 25 per cent stake in the investment company, ensuring that any generated wealth will be distributed equally, he noted.

Terengganu Menteri Besar Samsuri Mokhtar said at the meeting held in Bangi, Selangor, that the SG4 Group has already attracted interest from foreign investors from South Korea, Japan and China.