Dr Mahathir announces SG4 joint venture, with each Perikatan-led state holding 25% stake to ensure fair economic distribution

BANGI, Sept 2 — State Government Group 4 (SG4) chief adviser Tun Dr Mahathir Mohamad today announced the formation of a new jointly-owned company called SG4 Group Sdn Bhd, in which each of the four PN-ruled states of Kelantan, Terengganu, Kedah and Perlis will hold a 25% stake.

He explained that the initiative aims to ensure that economic benefits are distributed fairly, with particular emphasis on economically disadvantaged states.

“We want to clarify the cooperation between the four states and the potential creation of a joint company, with each state holding a 25 percent stake.

“The aim is to ensure that the benefits are distributed fairly, including to states that are lagging behind,” he told reporters at a press conference at the SG4 summit today.

He said there were concerns that the formation of SG4 would stray from the government’s objectives.

He stressed, however, that the main focus remains on the development of underdeveloped states, which also aims to attract foreign investment by drawing inspiration from successful models of other countries.

“There are concerns that the formation of SG4 could take a different direction from the government, but our aim is to advance the four states that have not received the same level of wealth as others.

“We also intend to attract foreign investment and look for examples in other countries,” he added.

Dr Mahathir also said investments were already starting to flow in, hoping for a fair distribution of wealth and to attract domestic and international investors.

He said, however, that the details of these sectors will be discussed later.

The former prime minister also said the company would focus on five key sectors including economy and industry, green technology, infrastructure and logistics, trade and investment, agriculture and food security, and education and human capital.

Dr Mahathir said each participating state will appoint its board of directors to oversee the company’s operations.