Lim Guan Eng sharply criticized UMNO leader Datuk Seri Reezal Merican Naina Merican for accusing DAP and PKR of engaging in identity politics, calling the claim unfair and harsh [1, 2, 3]. He questioned whether UMNO’s ties with DAP in the Penang unity government can remain cordial given Reezal’s remarks, asking, “Can ties between Umno and DAP in the Penang government remain cordial and tension free when Umno behaves like an ‘enemy within’ by making such unwarranted attacks? With friends like these, one does not need enemies,” he said [2].

Lim contended that it is Barisan Nasional (BN) and Perikatan Nasional (PN), not DAP and PKR, who are the true culprits engaging in identity politics [1, 2, 3]. He expressed concern that UMNO might leverage its position in Penang’s government to channel resources to PN while sidelining Pakatan Harapan (PH). “Will Umno use its current position to tap Penang’s government resources to help PN and sideline Pakatan Harapan (PH)? The time has come for our state's political leadership in PH to act decisively,” Lim stated [1].

Reezal Merican responded by insisting UMNO and DAP maintain cordial, professional, and tension-free ties in Penang despite differences and recent political developments in other states. “There had been no misunderstandings, disputes or conflicts between the two parties in the state, although differences in opinion were inevitable,” Reezal said [1]. He acknowledged that political developments in Johor and Negeri Sembilan could affect cooperation, noting, “But what happened in Johor and Negeri Sembilan will definitely have an impact. We can’t deny that reality,” he added [3].

The disagreement reflects broader tensions within the unity government in Penang. Penang Pakatan Harapan chairman Chow Kon Yeow said the coalition has yet to decide whether UMNO will remain part of the unity government amid BN's growing cooperation with PN [3].

On August 6, Reezal stated UMNO-DAP ties remain cordial in Penang despite wider political shifts [1]. The next day, Lim publicly refuted Reezal’s comments, accusing UMNO of acting as an “enemy within” and questioning its commitment to the Penang unity government [2]. Lim reiterated his concerns on August 13, emphasizing the risk of Pakatan Harapan being sidelined in state resource allocation [1, 3].