Former prime minister Dr Mahathir Mohamad, who serves as an adviser to SG4, said this initiative aims to collectively advance Terengganu, Kelantan, Kedah and Perlis as these states are not faring as well as others economically.

He said that each of these four states will hold a 25% stake in the company, registered under the name SG4 Group Sdn Bhd.

“In Terengganu and Kelantan, there are rich deposits of rare earth elements (REE) and the same can be said for Kedah. Perlis has dolomite, which is used in processing REE.

“So our goal is to ensure that all the wealth we generate is distributed equitably so that states that have fallen behind can also benefit,” he told a press conference at the SG4 Summit here.

He said the formation of SG4 is not intended to bypass the federal government’s role but to support the states that have been left out from benefitting from the nation’s wealth.

SG4 executive secretary Takiyuddin Hassan said the company would focus on five key clusters – infrastructure and logistics; trade, investment and industry; agriculture and food security; education and human capital; and new sources of revenue.