Penang Government has no powers to issue bonds without Federal approval
The Penang State Government has no powers to issue bonds to finance the three reclaimed islands project costing RM11 billion without the approval of the Federal Government. Article 111(2) of the Federal Constitution makes it abundantly clear that a State is allowed to borrow, for a period not exceeding five years, from a bank or other financial source only with the approval of the Federal...
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