BANGI: The creation of the State Government 4 (SG4) by the Perikatan Nasional states of Kedah, Terengganu, Kelantan, and Perlis is not intended to undermine the authority of the Federal Government, says Tun Dr Mahathir Mohamad.
The former prime minister and SG4 adviser said the formation of the investment company aims to ensure financial stability for the four states.
"A few months ago, we established a special purpose vehicle company where its shares are owned equally by all four states, meaning each state will own 25% of the company," he said.
"We want to make sure all four states receive equal revenue so that none will be left behind.
"We are not undermining or opposing the federal government. We are creating this because these four states are not getting their fair share of the wealth.
"We simply want these four states to develop so their people can equally enjoy the wealth," he said during a press conference after his speech at the SG4 Summit held at Tenera Hotel on Monday (Sept 2).
Also present at the media conference were PAS president Tan Sri Abdul Hadi Awang and PAS secretary-general Datuk Seri Takiyuddin Hassan.
According to Dr Mahathir, aside from domestic investments, SG4 is also actively seeking foreign direct investment (FDI).
When asked about some of the main businesses he suggested for SG4 to invest in, Dr Mahathir pointed to rare earth (RE) mining.
"We believe RE is a source of wealth. Not all four states have RE, but regardless, all four states will get an equal share."
Additionally, Takiyuddin explained that SG4 has set an investment target covering five clusters: infrastructure and logistics; trade, investment, and industry; agriculture and food security; education and human capital; and new revenue.
"Each cluster will be chaired by one exco member from each state. We have started receiving new investments, but these are still being finalised," Takiyuddin said.
After SG4 was created in September last year, Perikatan announced Dr Mahathir as its adviser, saying the former Langkawi MP will provide the investment company with advice on effective governance to ensure efficiency.
