THE Penang government will carefully assess all requirements and public feedback before making any decision on a proposed mixed development on part of Lot 642, Bandar Gelugor, the State Legislative Assembly was told.
Local Government, Town and Country Planning Committee chairman Jason H’ng Mooi Lye said the proposal had drawn attention from several assemblymen, including representatives from Sungai Dua, Seri Delima and Penanti, with concerns raised over traffic congestion, infrastructure, green spaces and the need for multiple impact assessments.
“I take note that the proposed mixed development on part of Lot 642, Bandar Gelugor has attracted the attention of several assemblymen, with issues raised such as the Traffic Impact Assessment (TIA), Social Impact Assessment (SIA), Environmental Impact Assessment (EIA), the National Physical Planning Council (MPFN), traffic congestion, basic facilities and the loss of green areas that concern nearby residents,” he said when answering his oral question.
H’ng (PH – Jawi) explained that the State Planning Committee meeting on Oct 30, 2025 decided the developer must refer the project to the National Physical Planning Council under the Town and Country Planning Act 1976 and prepare TIA and SIA reports.
He noted that although the developer had appealed for an exemption from MPFN referral, the appeal was rejected in February 2026.
“The State Planning Committee decided to reject the appeal as the state government views the proposal as a project with significant impact on the community, and therefore it must still be referred to and obtain advice from the MPFN to ensure it is implemented in a sustainable and balanced manner,” he said.
At the same time, PLANMalaysia headquarters had opined that the project did not need MPFN referral as it involved vertical residential development within a 14.507-acre area and did not constitute a new township.
H’ng updated the House on the status of required technical reports.
He said the developer had submitted the Traffic Impact Assessment to the Penang Island City Council (MBPP) and it was currently under evaluation, while the Road Safety Audit remained under consideration by the Public Works Department.
He added that the Social Impact Assessment had yet to be submitted.
“The SIA report is still not submitted by the developer,” he said, adding that the report would be evaluated by the Penang SIA Report Evaluation Panel Committee coordinated by PLANMalaysia Penang.
On environmental requirements, he said the Department of Environment had indicated the project was not subject to the Environmental Quality (Prescribed Activities) Environmental Impact Assessment Order 2015 as it does not involve coastal areas, hillside development or land exceeding 50 hectares.
“However, the provisions under the Environmental Quality Act 1974 and its regulations must still be complied with to ensure environmental sustainability is preserved,” he stressed.
H’ng reiterated the state’s commitment to thorough evaluation before any approval.
“The state government, through MBPP, will continue to examine all views and feedback received, including the voices of nearby residents, before making any decision,” he said.
“The state government is committed to ensuring every proposed development is implemented in a planned, sustainable manner and in compliance with all legal provisions.”
During a supplementary question, Zulkefli Bakar (PN – Penanti) sought clarification on whether the project would proceed despite not yet receiving approval and raised confusion over whether the DoE had been consulted.
Zulkefli said the project could involve a population density exceeding 20,000 people and warned that it could create major issues if not thoroughly assessed.
“Will the state government continue this project even though it has not yet been approved?” he asked.
H’ng replied that the decision would depend on the One Stop Centre (OSC) Committee under MBPP, which is scheduled to meet at the end of the month.
“All approvals are subject to the conditions set. At present, I have no answer as the planning permission application will be tabled at the OSC Committee meeting at the end of this month.
“We will look at all conditions and factors to consider whether the project can be considered or not,” he said.
Story by Kevin Vimal
Pix by Darwina Mohd Daud