THE Penang government has expressed its willingness to act as a facilitator between the Federal Land Development Authority (Felda) and the Railway Assets Corporation (RAC) on the issue of land lease involving MSM Malaysia Holdings Bhd’s sugar refinery in Perai.
Chief Minister Chow Kon Yeow said the matter is significant as the state wants the planned affordable housing project at the site to proceed smoothly without hindrance.
The MSM Malaysia Holdings sugar refinery sits within the proposed redevelopment site, which also includes Kampung Manis.
“Technically, the land belongs to RAC, not the state government. However, it is leasehold land, and the lease will expire in the next few years.
“Whether the lease is extended or not is within the state government’s jurisdiction. Hence, negotiations between Felda, which owns MSM Malaysia, and RAC must take place because RAC is pushing forward with an affordable housing project there.
“I was also informed that MSM Malaysia has a large facility in Johor capable of absorbing the Perai refinery’s operations. Nevertheless, both parties need to hold proper discussions first,” Chow told reporters during a press conference at Komtar today.
He added that the state government is mindful of the issue and will help facilitate the process.
“This is because ultimately, we want the housing project to proceed, as it will provide proper relocation for those currently living illegally on land owned by RAC.
“Without redevelopment, the living conditions in Kampung Manis are extremely poor,” he said.
Earlier reports stated that Felda would engage in discussions with both the Penang government and RAC on extending the refinery’s land lease.
Felda chairman Datuk Seri Ahmad Shabery Cheek previously said the lease, granted in 1964, will expire in five years, and that it was understood the state has plans to redevelop the area.
He acknowledged that the land was leased from RAC, which comes under the Transport Ministry, and stressed Felda’s appreciation of the state’s development plans. However, he also warned that closing the refinery would have a serious impact on the country’s sugar supply.
In November last year, a major milestone was marked with the signing of a Memorandum of Agreement (MOA) for the Kampung Manis redevelopment project between RAC and the Penang Housing Board (LPNPP). On the same occasion, a Head of Agreement (HOA) was also signed between RAC and Rivanis Ventures Sdn Bhd.
The mixed-use redevelopment, branded as Rivanis, will be carried out in two phases. Phase One will include 338 residential units, complete with facilities such as a swimming pool and a car park.
In total, 177 households in Kampung Manis will each receive an 850 sq ft unit worth approximately RM400,000, provided free of charge in exchange for their current homes.
Story by Riadz Akmal
Pix by Darwina Mohd Daud
Video by Law Suun Ting