The SG4 grouping, consisting of the four opposition-controlled states of Kelantan, Terengganu, Kedah and Perlis, recently announced the formation of a company to share revenue equally. These states, with some of the lowest gross domestic product per capita in Malaysia, feel they have been sidelined by the federal government in terms of allocations and infrastructure projects due to their political alignment. The company aims to exploit the abundant rare earth deposits in these states, which are in high demand for manufacturing high-tech products.
Former prime minister Mahathir Mohamad is advising the SG4 Group, emphasizing the need for efficient management to ensure economic benefits from natural resources are shared with the people. However, concerns have been raised, including by UMNO Supreme Council member Dr Puad, questioning the company’s viability and potential issues that could arise if power changes hands in the opposition states. Dr Puad also accused the company of being politically motivated rather than for business purposes, especially with Dr Mahathir as an advisor.
In response to criticism and skepticism, Mr. Sanusi, the leader of the SG4 grouping, pointed out that only two state seats in Kelantan are held by BN, signaling that PN is expected to expand its representation in upcoming state elections. PN’s chief whip, Mr. Takiyuddin Hassan, clarified that any changes in parties in the four states would not necessarily impact membership in the SG4 company, as shareholders can choose to exit if they wish. He also mentioned that other states were welcome to join the company if interested, indicating an openness to expansion.
The SG4 company is focusing on five key economic clusters, with each of the four states holding 25% equity. These clusters include economy and industry, green technology, infrastructure and logistics, trade and investment, agriculture and food security, as well as education and human capital. Deputy Prime Minister Ahmad Zahid, also UMNO president, emphasized the importance of ensuring that rare earth element mining activities comply with national regulations and ecosystem. Despite the drop in REE prices, there is still potential for these states, and strategies should align with federal government regulations.
Overall, the formation of the SG4 company represents a step towards wealth distribution and economic development in the opposition-controlled states. While there are concerns about its political motivations and potential challenges in case of power shifts, the focus on leveraging natural resources like rare earth deposits shows a commitment to fueling economic growth. With support and guidance from experienced leaders like Mahathir Mohamad, the SG4 group aims to uplift their states and bridge the gap between them and more developed government-held regions in Malaysia.
