Former prime minister calls for greater value from rare earth resources, stronger local businesses and full commitment to narrowing regional development gaps
IN BRIEF
- Tun Dr Mahathir Mohamad’s keynote at the SG4 Business & Economic Forum 2026 was read by his son, Tan Sri Mokhzani Mahathir, as he recovers from ill health.
- He describes the four states, home to 5.7 million people, as a “sleeping giant” with the size, land, people and infrastructure to grow.
- On rare earth elements, he says the goal is value-adding, not just extraction and sale.
- He urges the states to commit fully and declare that SG4, too, is “BOLEH”.
By TENGKU NOOR SHAMSIAH TENGKU ABDULLAH
KUALA LUMPUR, Oct 26 – Former prime minister Tun Dr Mahathir Mohamad has described SG4 as a “sleeping giant”, urging Kedah, Kelantan, Terengganu and Perlis to combine their resources, develop local capabilities and secure greater economic value from their natural wealth.
His keynote address at the SG4 Business & Economic Forum 2026 at the Kuala Lumpur Convention Centre (KLCC) today was read on his behalf by his son, Tan Sri Mokhzani Mahathir.
Mokhzani said his father had prepared the speech and wanted to deliver it himself, but had been unwell in recent weeks.
In the address, Dr Mahathir apologised for his absence, explaining that he had yet to recover fully and had asked Mokhzani to speak on his behalf.
The forum was organised by SG4 Group Sdn Bhd, the company jointly owned by the four state governments namely Terengganu, Kelantan, Kedah and Perlis.
Also present were Terengganu Menteri Besar Dato’ Seri Ir. Dr Ahmad Samsuri Mokhtar; Kedah Menteri Besar Dato’ Seri Muhammad Sanusi Md Nor; Kelantan Menteri Besar Dato’ Mohd Nassuruddin Daud; Perlis Menteri Besar Abu Bakar Hamzah; and Kedah executive councillor for Industry and Investment, Higher Education, Science, Technology and Innovation, Prof Dr Haim Hilman Abdullah.
Participants at the SG4 Business & Economic Forum 2026 at the Kuala Lumpur Convention Centre on Oct 26, 2026, which brought together state leaders, diplomats, investors and industry representatives to discuss economic opportunities across the four SG4 states.
Pooling Resources And Expertise
Dr Mahathir, an adviser to SG4, said the four states’ combined population of about 5.7 million and land area of more than 38,000 square kilometres provided a substantial foundation for economic development.
“If these states can get their act together, pool their resources and complement each other, the sky is the limit does not sound too cliched anymore,” he said.
He said the grouping had the land, people and infrastructure to become a productive economic and business zone, but needed the expertise to develop those assets sustainably.
He said discussions with the state leaders showed that they understood their resources and were exploring opportunities beyond their traditional economic activities. Kedah was expanding its manufacturing base, Kelantan was seeking stronger commercial opportunities in agriculture, Terengganu was exploring downstream petroleum activities and Perlis was developing cross-border trade.
He also noted that the states were considering a commercial-style approach to large-scale farming, grouping smallholders together under professional management rather than leaving them to work small individual plots.
SG4 Business & Economic Forum 2026 takes place at the Kuala Lumpur Convention Centre on Oct 26, 2026.
Rare Earths And Local Capabilities
Turning to rare earth elements, Dr Mahathir said the states’ resources had attracted domestic and international interest. He urged them to develop activities that could increase the value of those resources and retain more income locally, rather than relying on extraction and sales alone.
He cautioned that natural wealth alone would not be enough, saying the states “must never forget that the real potential and asset is their own people.”
“If the people in these states do not share the same dreams, then whatever wealth that can be potentially exploited will not amount to much,” he said.
Entrepreneurship And Business Integrity
Dr Mahathir took issue with the view that the four states are less wealthy because most of their people are Malay Muslims seen as not good at business. He argued that many successful Malay businessmen in Kuala Lumpur, Selangor and other west coast states originally came from the SG4 states.
He cited entrepreneurs in food and catering, alongside the growth of cafes and homestays, as examples of business activity across the states. He said Kedah people were hardworking and resilient.
He suggested SG4 should help local businesses avoid saturation and oversupply, and offer more sustainable business models where needed.
Dr Mahathir linked business success to honesty, trust and integrity, saying Islamic teachings condemned cheating and theft.
While stressing that most Malays in the four states were honest Muslims, he warned that shortcuts, quick gains and corruption among some could undermine progress.
Commitment To Development
Dr Mahathir said SG4 could realise its potential only if its leaders and people shared a commitment to improving their economic circumstances. He called for full commitment to overcoming longstanding development gaps.
Recalling the “Malaysia Boleh” spirit associated with the country’s development in the 1990s, he urged the four states to approach their economic ambitions with similar confidence and determination.
SG4 Background
Dr Mahathir was named adviser to SG4 in September 2023, when Terengganu Menteri Besar Dato’ Seri Dr Ahmad Samsuri Mokhtar announced the grouping of the four Perikatan Nasional-led states. In September 2024, Dr Mahathir announced the formation of SG4 Group Sdn Bhd, in which each state holds a 25 per cent stake.
Earlier, Ahmad Samsuri delivered the opening address, calling for fairer federal development funding and proposing an SG4 Islamic finance hub. Haim Hilman, who is also SG4 Group chairman, outlined the four states’ economic profile and investment priorities.
- TNS NEWS