THE proposed development of Batu Kawan Industrial Park 2 (BKIP2) was not a land sale to a private company, Chief Minister Chow Kon Yeow reiterated.
Detailing the chronology at the Penang Legislative Assembly today, Chow said the proposed development of BKIP2, which was later called off, was a collaboration between the Penang Development Corporation (PDC) and Umech Land.
“Referring to the case involving Umech, the term used in the agreement was ‘collaboration’ and not a land sale.
“Through the collaboration concept, PDC had its roles to play in the development of the BKIP2, also known as Byram Industrial Park,” he answered the supplementary question by Lim Guan Eng (PH – Air Putih).
Chow said PDC, in playing its role in the development of BKIP2, did not violate the Land Acquisition Act 1960.
Answering another supplementary question by Lim, Chow said that the offer for collaboration by the PDC was for Umech Land.
Lim asked whether the approval given by the PDC Board on Nov 28 last year (2022) and Feb 9 this year (2023) was for Umech Land or Umech Construction.
“A meeting was held in November (last year) for Umech to provide a detailed proposal to selected members of the PDC Board. During the meeting, it was communicated that further discussions would be conducted using the Umech Land’s identity.
“A letter by Umech Construction to PDC in August (last year) also indicates the intention to continue the follow-up discussion using the Umech Land’s identity.
“Both Umech Land and Umech Construction are entities under Umech Group.
“Umech Land and Umech Construction had the same shareholders and directors,” he said.
Chow also spoke about PDC’s decision on the matter.
“Perhaps the heading or title of the meeting minutes was not changed from Umech Construction to Umech Land. However, the offer letter was signed by Umech Land.
“The involvement of Sunway Berhad and the change of equity affected Umech Land and not Umech Construction,” Chow explained.
PDC, in its statement on Oct 17, announced the termination of a joint venture agreement with Umech Land Sdn Bhd for the development of BKIP2.
Story by Christopher Tan
Pix by Siti Nuratikah Rahmat