THE sale of land in Penang is not intended solely to generate revenue, but also to spur development, create employment opportunities, and enhance the economic value of the surrounding areas.
Chief Minister Chow Kon Yeow (PH–Padang Kota), who also chairs the state Finance, Economic Development, Land and Communications Committee, shared this during his winding-up speech at the Penang State Legislative Assembly in Light Street today.
However, Chow clarified that technically, the state government does not sell land outright. Instead, land alienation is carried out through mechanisms such as the granting of land titles, leasehold arrangements, or other methods in accordance with the National Land Code 1965.
“As such, the term ‘land sale’ is not used within the context of the state government’s administration,” Chow said in response to a question from Mohd Yusni Mat Piah (PN–Penaga).
He added that in the process of land alienation, the state government considers current land valuations provided by the Valuation and Property Services Department (JPPH).
“In addition, if the land involves strategic projects such as housing developments, the state government adopts the Request for Proposal (RFP) approach in the alienation process. This enables the state to secure higher premium revenue than the current land value,” he said.
Chow also stressed that land alienation does not reduce the state’s ownership of land, nor is it done solely for revenue generation.
“This is because the land is used to drive development and support the socioeconomic growth of the area,” he explained.
He pointed out that if the state government chooses not to develop its land, it would continue to incur management costs, while the public would be deprived of access to the facilities and infrastructure that could otherwise be built on the site.
“For example, this includes roads, playgrounds, and other public amenities or developments,” he said.
Story by Tanushalini Moroter
Pix by Noor Siti Nabilah Noorazis