PENANG Development Corporation (PDC) treats each transaction case differently as it is not possible for every company to have the same components, says Chief Minister Chow Kon Yeow.
Chow, also PDC board chairman, said PDC welcomes proposals from investors that have a catalytic effect.
His remarks were in response to reporters’ questions on the press statement made by Aspen that clarified its land purchase from PDC for Aspen Vision City in 2014.
PDC recently selected UMECH as a collaborative partner to develop 559-acre land in Byram, near the Pulau Burung landfill, into an industrial park (BKIP2). It is learnt that PDC will receive a land entitlement valued at RM646mil for this project.
In the statement, Aspen said the direct negotiation between PDC and Aspen back in 2013 was vastly different, and under varied circumstances.
It added that Datuk M. Murly, the president and Group CEO of Aspen, said it is not reasonable nor logical to compare the direct negotiation between Aspen and PDC in 2013 with the recent land sale of Batu Kawan Industrial Park 2 (BKIP2) as the two transactions fundamentally differ.
Chow emphasised that every transaction involves unique details and collaborations.
“In Byram, the infrastructure is different; it is empty, with no infrastructure whatsoever. So, each case is different, but the fact is that it is through direct negotiations.
“We encourage proposers to suggest projects classified as catalysts, which would have a significant impact and attract other investments.
“So, what Aspen said is not an issue. That is their right to explain, but the truth is, it was also negotiated with different terms and conditions,” Chow said after attending the Salvation Army Penang Open Day 2023 in Logan Road today.
Chow noted that PDC has previously collaborated with Sime Darby on projects involving high infrastructure costs such as road construction, bridges, facilities, dams, and soil filling among others.
In Batu Kawan, he said other collaboration examples include Aspen, Design Village and two or three more that will soon sign a Memorandum of Understanding with PDC for the building of a medical city and shopping malls.
He added that PDC would write to UMECH to seek an explanation for not being informed about a change of equity and the involvement of Sunway Berhad in the joint development.
“I understand Sunway is also a very strong listed construction company. It makes it even more viable. But I think PDC will write to UMECH seeking an explanation as to why PDC was not informed of the change of equity. They should inform PDC about their restructure and shareholders,” Chow said.
He said PDC has recently also posted information on its website regarding land available for development and interested parties can submit their proposals.
Asked whether it is necessary for the proposer to be a Penang-based company, Chow said they are not discriminating against anyone.
He said they could bring in collaboration partners to make sure their projects succeed.
Story by K.H. Ong
Pix by Darwina Mohd Daud
Video by Adleena Rahayu Ahmad Radzi