KUALA LUMPUR — The inability of SG4 Group Sdn Bhd (SG4), a synergy group formed by four Perikatan Nasional (PN)-led states, to assist Terengganu with its Aidilfitri Special Financial Aid (BKK) highlights the shortcomings of the inter-state cooperation championed by the PAS-led governments.
Speaking to Scoop, political analyst Mohammad Tawfiq Yaakub said the matter of the bonus was a straightforward example of how SG4 has failed to deliver tangible benefits, describing it as “nothing more than a political gimmick”.
“This issue could have been easily resolved without federal assistance as states also have other sources of revenue and profits from state-linked companies,” said the senior lecturer at the Department of Political Science, Universiti Malaya (UM).
“State government subsidiaries should be able to generate income for the state and become a financial resource for its administration. In my view, what happened here points more to a weakness in state-level governance,” he said.
In September 2024, the four PN-held states – Kelantan, Terengganu, Kedah, and Perlis – came together to form SG4 Group with the aim of pooling resources and sharing wealth. Former prime minister Tun Dr Mahathir Mohamad was appointed as the company’s adviser.
Tawfiq said the formation of SG4 appeared to be a duplication of the federal-level Regional Economic Development Corridors established in 2010.
“In fact, I see the Regional Development Corridors as more successful and effective in achieving their goals because they were not politically motivated, unlike SG4 which only involves PN-led states,” he said.
As such, Tawfiq urged these state governments to strengthen cooperation with the federal government in order to spur local economic development.
“I don’t see SG4 going far, and it would be better for these state governments to intensify their collaboration with the federal government to develop the local economy.
“This can be done through various initiatives such as attracting investors, increasing existing investments, and exploring new economic opportunities.
“Rather than sowing seeds of policy confrontation and differing development approaches,” he added.
At the SG4 Summit held in Bangi last September, Dr Mahathir stated that each of the four states would hold equal shares in the company.
He also clarified that SG4’s role was solely to develop the four states and that it did not seek to act contrary to the federal government.
SG4 Group currently focuses on five clusters: infrastructure and logistics; trade, investment, and industry; agriculture and food security; education and human capital; and new income sources. – April 13, 2025.