GEORGE TOWN, July 9 -- Penang Chief Minister Chow Kon Yeow has deferred the dispute over lease payments to the Kedah state government to Putrajaya, maintaining that the matter falls entirely under federal jurisdiction.

While the federal government has paid an annual honorarium of RM10 million to Kedah on behalf of Penang since 2018, the Kedah state government is demanding a steep increase to RM100 million annually.

Speaking to reporters today after visiting the Northern Heart Hospital Penang, Chow clarified that the state administration has held no discussions with its neighbour, as the payments do not involve the state's own coffers.

"This is an issue for the federal government. It is a constitutional matter," he said.

The chief mini...