Sanusi said Kedah was unable to generate revenue by conserving the 341,000ha Ulu Muda forest, which served as a crucial water catchment area for Kedah, Perlis, and Penang.

He said the same applied to the vast padi fields in the state, which he said were responsible for supplying 43% of the nation’s rice demand and could not be repurposed, depriving Kedah of higher land premiums.

“Our rice fields cannot be transformed into industrial zones that could yield greater returns. This represents a significant sacrifice.

“While we have numerous plans to develop and improve the lives of Kedahans, we are unable to do so. They (the government) claim it is a social obligation of Kedahans for the betterment of all Malaysians.

“Consequently, Kedah has ranked second in terms of poverty in the country, based on per capita income,” he said at the opening of a farmers event in Alor Setar.

Sanusi stated that the RM270 million could be provided in part as a special handout, which would benefit the farmers.

“We have presented a special formula for calculating this, but we have yet to receive a response.

“We are asking for RM100 million for the forest reserves and RM170 million for the padi fields. It is not an excessive amount considering the meagre compensation we are receiving,” he said.

Previously, Sanusi had requested incentives to prevent the padi fields from being gazetted as commercial zones.

If converted, the state could earn RM1.7 billion in land-related taxes from 222ha of padi fields, he had said in the state assembly in 2021. He also requested a RM100 million grant to safeguard the 107,000ha of water catchment forests.

In 2020, Sanusi warned that the state would be liable to pay RM1.5 billion in compensation to concession holders if their logging rights in the Ulu Muda forest reserves were revoked.