Speaking in the Dewan Rakyat today, Chow (PH-Batu Kawan) said the Malaysian government’s consistent legal position on Sabah had set a clear precedent that sovereignty is determined by the Federal Constitution, not pre-independence arrangements or historical narratives.
“This firmly establishes that Sabah’s sovereignty is determined by the Federal Constitution, the formation of Malaysia in 1963, and international recognition,” he said while debating the king’s royal address.
Chow argued that Penang had been a sovereign state in the Federation of Malaysia since independence in 1957, a status reinforced by the Malaysia Agreement 1963.
He also said that state boundaries were conclusively determined through the Kedah and Penang (Alteration of Boundary) Act 1985, enacted by Parliament under Article 2 of the Federal Constitution.
“In a federal system, state boundaries cannot be altered arbitrarily, let alone through political statements, without a lawful legal process,” he said, warning that entertaining such claims would contradict the spirit of federalism and risked future instability.
Kedah menteri besar Sanusi Nor has maintained that Penang belongs to Kedah, citing a 1791 lease to the British for 10,000 Spanish dollars. He has also formed a legal team of historians and lawyers to pursue court action on these “historical rights”.
The Penang government maintains that the sultanate effectively ceded the territories after Merdeka.
Chow also backed the Yang di-Pertuan Agong’s call for a mature resolution of differences without hatred or suspicion, calling for an end to political rhetoric that brings no benefit to the people.
Instead, he said, the focus should be on economic development and improving living standards, outlining Penang’s proposal to establish the Penang International Financial Centre (PIFC).
Chow said the proposed financial centre was not intended to compete with Kuala Lumpur as the country’s main financial hub, but to complement it by focusing on specialised areas such as digital assets, fintech and manufacturing-related financial services.
“It is therefore Penang’s hope that the federal government will consider this application and work together to realise the establishment of the PIFC,” he said.
The finance ministry previously said that Putrajaya had no concrete plans to move the project forward. However, the Penang government has continued to pursue discussions.