THE Chief Minister Incorporated (CMI) continues to play a vital role in driving the state’s economic growth by strategically managing state assets and collaborating with the private sector, said Chief Minister Chow Kon Yeow.
In his winding-up speech during the State Legislative Assembly Sitting, Chow explained that CMI operates under a public-private-professional partnership model (4P) to maximise the strategic value of state assets, particularly land, and buildings.
“CMI generates income through leasing and joint venture projects with the private sector.
“More recently, its responsibilities have expanded to include financial oversight of 17 government-linked companies (GLCs),” said Chow (PH – Padang Kota), who also holds the portfolio for Finance, Economic Development, Land, and Communications.
He added that the key objective of CMI is to implement development projects through private sector collaboration to ease the financial burden on the state government while simultaneously generating revenue from land leases and rentals.
“Since its inception in 2013, CMI has attracted a total of RM3.2 billion in investments for the state government through various projects, including the Sandiland Foreshore housing development, Kampung Pisang Awak housing, the redevelopment of the Crag Hotel, Ferringhi Bay, and the Bayu Senja Complex, as well as educational and recreational projects such as the Stonyhurst International School and a badminton academy.
“Beyond property development, CMI is also responsible for several socioeconomic projects such as the Penang Digital Library, the management of Wisma Yeap Chor Ee under the Creative Digital District initiative, and the Gurney Bay project.
“It also engages in heritage conservation, tourism, housing, agriculture, and STEM education initiatives,” he said in his speech.
According to Chow, the state earned RM219.17 million in revenue from land disposals, leases, and rentals across sectors such as housing, education, tourism, healthcare, and telecommunications between 2013 and April 2025.
“CMI’s operations are closely monitored by the State Secretary’s Office via the State Economic Planning Division (BPEN), and all activities are governed by existing circulars, regulations, and laws to ensure good governance.
“Oversight is also provided by the CMI Board of Directors.
“To further strengthen governance and improve GLC performance, the state is currently considering the merger and restructuring of GLCs.
“A comprehensive study will begin in 2025 and is expected to be completed by mid-2026.
“The review will focus on corporate governance, business transformation, digital economy, and sustainability,” he added.
It was learned that In 2024, GLCs received RM39.2 million in funding but spent RM59.7 million, with the RM20.9 million shortfall sourced elsewhere.
In 2025, RM41 million was approved from a request of RM51.6 million, a 20.5% reduction with spending still under scrutiny.
“GLCs are now encouraged to adopt new financing models, including public-private partnerships and matching grants.
“Additionally, amendments to the Memorandum and Articles of Association (M&A) of GLCs like Penang Convention and Exhibition Bureau (PCEB) and Digital Penang now allow them to generate their revenue to support operations.
“In line with good governance practices, all GLCs have been placed under CMI’s supervision since April 2019.
“The transfer of shares and directorships from state executive councillor members or individuals to CMI has also been carried out as recommended by the National Audit Department,” Chow added.
In response to a question from Goh Choon Aik (PH – Bukit Tambun), Chow provided updates on state-owned reclaimed lands, namely the 14.5-acre plot at Lot 642, Bandar Gelugor, which was awarded through a Request for Proposal (RFP) for mixed development.
“The project is expected to generate RM221 million in revenue and include 120 units of affordable civil servant housing.
“Another is the two reclaimed plots at Gurney Bay, Plot A (6.95 acres, 81.6% completed) and Plot B (7.91 acres, fully completed) will soon be opened for RFP once administrative processes are finalised.
“The estimated land value is RM900 per square foot, with strong revenue potential over the next five years,” he added.
Story by Kevin Vimal
Pix by Noor Siti Nabilah Noorazis