Thursday, December 4, 2025

WHY PENANG SHOULD PAY MORE LEASE TO KEDAH, WHY SINGAPORE SHOULD PAY MORE FOR WATER TO MALAYSIA


Patut atau Tak Patut?
When I was a little boy, I often heard my dad, uncles and elders use the words patut and tak patut. These simple words carried weight. They were used when evaluating someone’s behaviour, when discussing whether an action was appropriate, or when judging the fairness of a decision. Long before I understood adult reasoning, I understood patut. It was about balance, fairness and the right thing to do.
The concept of patut and tak patut is deeply rooted in Malay culture. And because Malay culture forms the bedrock of Malaysian culture, these concepts belong to all of us. In fact, we Malaysians inherit a rich body of Malay ethical concepts. These concepts span across several domains. There are relational values that teach us how we treat one another. There are moral values that help us judge right and wrong beyond written rules. There are emotional-intelligent values grounded in the ideas of hati, budi and rasa, helping us sense what is appropriate, considerate and kind. There are community-enforced values that relate to shame, honour and dignity, shaping behaviour because we know what the community expects.
There are existential and fate-related ideas such as takdir and rezeki, which teach humility, patience and acceptance. There are social-harmony and balance values that emphasise moderation, the idea of what is elok and what is manis, ensuring we preserve harmony. There are organisational and duty-based ethics that focus on amanah and usaha, reminding us to fulfil responsibilities honourably. There are boundary-setting and humility values such as tahu diri that help us respect limits and roles. And finally, there are conflict-management and speech-ethics values such as berkias and berbahasa, guiding us to communicate with tact, subtlety and respect.
The concept of patut and tak patut is a meta-concept that weaves through several of these categories. It fits most naturally within the domain of social harmony and balance, because it is about what keeps society on an even keel. But it also belongs within moral reasoning, because it deals with fairness beyond legal boundaries. It sits within emotional-intelligent thinking, because it requires sensitivity, empathy and budi. It also lives within the community-enforced realm, because it relates to shame, honour and dignity.
To understand patut, we must appreciate its depth. The Malay idea of patut dan tak patut goes far beyond the English words “appropriate and inappropriate”. It is a blended standard that combines adab, which relates to courtesy, akhlak which relates to character, budi which reflects cultural wisdom, and kewajaran which is common sense and logic. When Malays say “Dia buat macam tu tak patut”, they are not merely judging the act. They are saying it violates moral expectations, cultural norms and relational obligations all at once. Patut is not simply what is allowed. It is what is reasonable, fair and morally proper. Tak patut is not simply what is wrong. It is what is unreasonable, unfair or out of balance. It disturbs social harmony even if no written rule is broken. By guiding us toward balance, consideration and respect, patut dan tak patut preserves the social fabric.
Let us use this foundational cultural lens to understand two major issues: the Penang–Kedah debate and the Malaysia–Singapore water dispute.
The question of whether Penang was ever leased from Kedah has long been debated. Historians, politicians and members of the public hold different views. Some historians argue that the so-called 1786 lease is a colonial myth. They point out that no signed agreement exists, only letters, drafts and informal notes. From this perspective, Penang’s separation from Kedah was not contractual but the result of British seizure. Kedah’s sense of injustice is therefore morally understandable even though it may not be legally enforceable.
Others, particularly in Kedah’s traditional narrative, maintain that an understanding did exist but that the British failed to honour it. Kedah allowed British presence in return for protection against Siam and Burma. That protection did not materialise. Kedah’s attempt to retake Penang in 1791 is seen as evidence that the original understanding was conditional and violated. An academic middle-ground view notes that agreements, annual payments and negotiations did take place, but the terms were vague and interpreted differently by each side. Kedah viewed it as a lease or pajakan, while the British treated it as cession. This ambiguity explains why the matter has never been settled conclusively.
After independence, Malaysia continued paying Kedah a small annual sum, now RM10,000,000, as a symbolic gesture. This is not a recognition of ownership but a way to maintain harmony without reopening old wounds. On the other hand, some political voices, especially within Kedah, claim Penang is borrowed land that should return to Kedah. They point to the symbolic payment as proof of ownership. Legally, however, this claim has no foundation. The Federal Constitution overrides all colonial-era understandings. Legally and constitutionally, Penang is a state of Malaysia. The debate therefore lies mainly in history, emotion and perception.
The Malaysia–Singapore water issue is also shaped by multiple viewpoints. Singapore holds tightly to the position that the 1962 Water Agreement is a binding international treaty guaranteed during the 1965 separation. From their viewpoint, the RM0.03 per 1,000 gallons rate cannot be changed unilaterally. Any adjustment must be mutual. Singapore also emphasises the billions spent on dams, pipelines, reservoirs and treatment plants that were constructed based on this agreement.
Malaysia’s perspective is different. The RM0.03 price was set more than 60 years ago during a vastly different economic era. Malaysia argues that the agreement contains a review clause after 1987, and that failing to update the price undervalues our water resources and national dignity. A related Malaysian legal reading refers to Clause 14, which explicitly allows a price review. Some argue Malaysia simply never exercised this right due to political considerations.
Another group views the issue from a diplomatic standpoint. They argue that despite imperfections, the agreement underpins stability between the two nations. Sudden changes could cause disruptions. For them, cooperation on sustainability, river health and security is more important than confrontation. Public opinion in Malaysia, however, is influenced by historical memory. Many feel the RM0.03 rate is a relic of colonial imbalance.
And finally, environmental experts note that the real issue may not be the price but the sustainability of the Johor River, which faces pollution, overuse and climate pressures. At times, Singapore has even supplied treated water to Johor in emergencies. Sustainability may matter more than old agreements.
Personally, I believe our Federal Constitution supersedes all earlier agreements, written or unwritten. Yet even with that belief, we still have to ask the cultural question: what is patut and what is tak patut?
Let us look at the water issue first. A fair and reasonable price must take into account three realities. First, the historical deal exists and Singapore has honoured a long-term agreement. Second, Singapore has invested heavily in water infrastructure, so it is not merely a buyer of raw water. Third, today’s value of water in Malaysia must be recognised. Households in Johor and other states pay between RM0.60 and RM1.20 per m³ for treated water, and the full cost of treatment is closer to RM1.75 per m³. Raw water forms only one component of this cost, but it is still a valuable resource with an opportunity cost.
A practical way to determine a fair value is to consider raw water as 10–20 percent of the full treatment cost. Using the estimated full cost of RM1.75 per m³, raw water should fall between RM0.175 and RM0.35 per m³. When converted into the treaty’s original measurement of 1,000 gallons, this becomes roughly RM0.66 to RM1.33. Rounded to a clean, workable figure, a fair band would be between RM0.95 and RM1.50 per 1,000 gallons. This is between 30 and 50 times higher than today’s outdated RM0.03 rate, yet still much lower than what Singapore households pay for fully treated water.
This range balances fairness with Singapore’s investment and the real value of Malaysian water. So the fair value is between RM0.66 and RM1.33 per 1,000 gallons. But today Singapore pays only RM0.03.
Patut atau tak patut?
Now let us examine the Penang–Kedah question from an economic perspective. Although no official source publishes Penang’s total land value, we can estimate it using land area multiplied by average land price.
Penang comprises 1,044 km², or about 11.24 billion square feet. In 2025, Penang Island’s prime areas such as George Town, Bayan Lepas, Tanjung Tokong and Jelutong range between RM300 and RM2,000 per square foot, with the island-wide average around RM350 to RM450. Seberang Perai ranges between RM50 and RM200 per square foot, giving an average of RM70 to RM120.
When combined, a realistic statewide average is around RM180 to RM220 per square foot. Using a midpoint of RM200, Penang’s total land value stands at about RM2.25 trillion.
To determine a fair annual lease, we apply land-lease economics. Residential properties in Malaysia typically yield between 2 and 4 percent annually. Commercial properties yield between 5 and 7 percent. Industrial land yields between 4 and 6 percent. Government concessions such as ports and reclaimed land often use yields between 3 and 5 percent.
For something as large and complex as a state, a fair benchmark is about 3 to 4 percent. Applying this to Penang’s total land value, 3 percent of RM2.25 trillion is RM67.5 billion, while 4 percent is RM90 billion. This gives us a fair leasing range of RM60 billion to RM90 billion per year.
In reality, Kedah receives only RM10 million. This means the symbolic payment represents only 0.017 percent of Penang’s true value. Put differently, for every RM1 paid, the real value is about RM6,000.
Again, patut atau tak patut?
“Minang dupo, minang amu.” - A Bidayuh proverb meaning “give fairly, receive fairly.”
“Lun kenep peang, lun kenep tinen.” - An Orang Ulu proverb meaning a person must balance the head and the heart.
“Kosundu do tulun, kosundu do kopioh.” - A Kadazan saying meaning a balanced person builds a balanced community.
“Agi idup, agi ngelaban.” - An Iban saying meaning as long as you live, do what is right and stand up for fairness.
Let us be better Malaysians and do what is patut and avoid what is tak patut.
Peace,
Anas Zubedy
Kuala Lumpur

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