PENANG today defended a directly negotiated RM156 million land lease, saying it was less than 1% of the RM35 billion made through open tenders since 2008.

Chief Minister Lim Guan Eng said the state’s decision to lease the 2.58ha Lebuhraya Peel land to the Penang Island Hospital was less than half a per cent of the open tenders amount.

“Compare the land sale to the RM2 billion investment by Island Hospital to build Malaysia’s largest private hospital and the RM7 billion economic value the project will generate,” he told reporters at the Penang legislative assembly meeting room today.

The development of Island Medical City will see the 300-bed Island Hospital grow into a 1,000-bed medical facility.

The hospital will target health tourists in line with the state’s aim to become the destination for health tourism.

Lim described the project as an “economic game changer” with its high value investment, job creation, reverse brain drain and ability to establish Penang as a medical city.

“For economic game changers, direct negotiation is the international norm. It is like getting Ikea to come to Batu Kawan… it is for them to set the terms, not us.

“Even the prime minister (Najib Razak) went to see Jack Ma. He sets the terms,” Lim said, referring to China’s richest man and founder of the successful Internet company Alibaba.

Lim was addressing questions why the state did not call an open tender for the land owned by Chief Minister Incorporated.

He also said the Penang government under Pakatan Harapan sold 36 times less land than the previous Barisan National administration, but gained more revenue via competitive open tenders.

BN sold 1,481.5ha of land in Tanjung Tokong, Jelutong, Batu Kawan and Butterworth from the early 90s to 2008 for RM1.0586 billion.

Under PH, Penang sold about 43ha in Taman Manggis and Bayan Mutiara through open tenders and made RM1.11 billion.

There was also criticism that the state should instead use the Lebuhraya Peel land for affordable housing.

Lim said affordable homes should be built where people could find jobs nearby.

He also said it was not true that Penang was not building affordable homes, as the state was building over 26,255 units of affordable homes and 20,887 low- and low-medium cost homes.

“But you cannot just build homes without building the industry… or in this case, a hospital that can provide jobs. Where would you find the people to buy the houses?

“You would have a situation, like in some states, where the homes are empty – bought by people for speculation, and not to live in.

“We must create jobs in the outskirts and the city. That is one of the top responsibilities of the state government,” he said. – May 19, 2017.