Who benefits from Penang’s mega projects?


K. Kabilan

Residents looking at environmental impact assessment reports for the Pan Island Link 1 in George Town, Penang, recently. Activists remain unconvinced that the government's development plans will not wreak havoc on the environment. – The Malaysian Insight file pic, October 28, 2018.

THE most recent Penang island map, published by a well-known realtor last month, shows the island as the state government wants it to be – fully developed with highways, tunnels and transport projects for interconnectivity, plus several man-made islands on reclaimed land – to make it more attractive to businesses and investors.

This is the new face of Penang as the DAP-led state sees it, and it is backed by developers and contractors, said activists, who instead fear that it will lead to more environmental disasters on an island already prone to fatal landslides and floods.

And, these activists are deeply disappointed that the state government refuses to listen to their grouses.

“This map is an indication of how Penang is going to be in the future, and some of these projects have not even been approved,” said heritage activist Khoo Salma Nasution.

Salma is part of Penang Forum, the most vocal civil group against the state’s move to build more roads and continue hill-slope developments.

She has seen for herself how certain developers or their representatives behaved arrogantly, even when dealing with state government officers.

“This is the case in almost all the big projects planned in Penang. The developers have it their way,” she told The Malaysian Insight recently.

Seeing the behaviour of these developers and their nexus to the state government, some activists have begun asking who is truly benefiting from all these mega projects.

Anil Netto, an Aliran blogger and activist, said there remains a stark lack of transparency in the manner development deals are parcelled out, and there could be possible conflicts of interest as well.

“We don’t know the true nature of the financing involved in the parcels. What are the costs of each component?”

Salma Khoo Nasution speaking at a Penang Forum protest in front of Penang Island City Hall recently. She says in almost all the big projects planned in Penang, the developers have had it their way. – The Malaysian Insight pic by David ST Loh, October 28, 2018.

At present, the largest project planned for the island is the Penang Transport Master Plan (PTMP) – estimated to cost RM46 billion – undertaken by Consortium Zenith Construction Sdn Bhd. The plan comprises a package of three roads and an undersea tunnel, which will be the third link connecting the island to the mainland. 

Apart from that, SRS Consortium – made up of Gamuda (60%), and Penang-based property developers Ideal Properties (20%) and Loh Phoy Yen (20%) – will construct the Pan-Island Link 1 (PIL1), light rail transit (LRT) and monorail. SRS Consortium’s projects will be funded through the auction of three plots of reclaimed land in the southern coast of Penang island.

The PIL dual-carriageway highways will link Gurney Drive, Batu Ferringhi and Air Itam to the Tun Dr Lim Chong Eu Expressway, while the LRT lines will connect Bayan Lepas to George Town, and Butterworth to George Town.

Anil said developers could find themselves in a conflict of interest if they tendered for work packages in any of the plans they have a hand in.

“So, Gamuda cannot bid to build the LRT or Penang Island Link, and Ideal and Loh Phoy Yen cannot bid for any of the reclaimed land without creating a conflict of interest.”

Despite this, Penang Chief Minister Chow Kon Yeow had said SRS Consortium’s role was to be the project facilitator and obtain the necessary approvals from federal agencies.

“They are not the sole contractor involved. There are still work components that fall under open tender bidding,” he was reported as saying in July.

“SRS is about getting the approvals and helping us get ready for construction. The work segments will be tendered out to local and national contractors over the duration of the project.”

But, activists like Anil are not convinced.

“Why, then, have two Penang-based property developers in SRS Consortium? Why not just hire consultants? 

“The question remains, who is going to benefit from all of these projects? Who are the projects for? The people of Penang or the developers?”

Penang Chief Minister Chow Kon Yeow at a town hall to discuss the Penang Transport Master Plan in George Town last month. He says work will be tendered out to both local and national contractors. – The Malaysian Insight file pic, October 28, 2018.

Salma questioned whether the PIL1 project is to cater to expat communities, who are expected to buy high-end properties at both ends of the new highway.

She said the highway would start in the north of the island, where a new mega project is under way at Gurney Drive, and end in an area in the south where three man-made islands that are part of PTMP are located.

“The prices of properties in Penang are already high. And these dream projects in the north and south will be beyond the reach of locals. It is obvious that the developers are targeting foreign owners.

“So, is the new highway being built to cater to these new Penangites? 

“And, they are building condos for a population that is not even here yet.”

She said plans are afoot to build expensive apartments and hotels on Jerejak Island.

The island will be connected to the coast of Penang near the Queensbay shopping mall, which Salma described as a kind of modified urban sprawl concept that pushes itself into hills and seas. – October 28, 2018.


Sign up or sign in here to comment.


Comments


  • This group of people are very shortsighted. Why do they want Penang to be slow moving like Kelantan? Do look far ahead and plan

    Posted 7 years ago by Jordan Lee · Reply