Takiyuddin said it must be understood that SG4 Group is a company registered with the Companies Commission of Malaysia, reported Berita Harian.

“When a company is established, it will surely have its shareholders and they can choose to exit anytime if they do not wish to remain with the company.

“The company is also open to any other states interested in becoming part of it. Currently, only four states are part of the company,” he told a press conference in Kota Bharu yesterday.

He said it would not be an issue if the four state governments, dubbed the “SG4”, wish to remain with the company, even if any of them are taken over by a different party.

Yesterday, Umno Supreme Council member Puad Zarkashi questioned the company’s future if any of the four states – Terengganu, Kelantan, Perlis, and Kedah – were to fall to other parties.

He claimed that the initiative is politically motivated, noting it is unprecedented for four states to share ownership of a company.

On Monday, it was reported that SG4 had set up the joint-company with a 25% stake each to share their wealth with each other.

Former prime minister Dr Mahathir Mohamad, who is an adviser to SG4, said this initiative aims to collectively advance the four states as they are not faring as well as others economically.

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.

Takiyuddin, who is also SG4’s executive secretary, 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.