Federal Court rules in favour of residents in Penang hillside dispute


The residents of several apartments and neighbourhoods in Sungai Ara have banded together to stop a massive development called Sunway Hills on a hill near their homes, in Penang. – The Malaysian Insight file pic, January 20, 2023.

RESIDENTS from the Sungai Ara condominium complex, Penang, have won their fight to deny approval for a housing scheme on sensitive hill land, following a Federal court ruling today.

The three-member bench, chaired by Chief Judge of Malaya Mohamad Zabidin Mohd Diah, this morning unanimously restored a decision by the Appeals Board under the Town and Country Planning Act 1976. 

Zabidin was joined by Federal Court judges Nallini Pathmanaban and Rhodzariah Bujang.

In the ruling, Nallini said the local authority’s approval of Sunway City (Penang) Sdn Bhd’s application for planning permission went beyond the legal power of the Town and Country Planning Act 1976 and, therefore, was void.

“The High Court and Court of Appeal erred in law in upholding the decision of the local authority to grant planning approval,” she said when delivering the judgment. 

On November 20, 2015, the Appeals Board – under the act – upheld the residents’ objection against planning permission granted by Penang Island City Council (MBPP) to develop land in Sungai Ara into a gated and guarded housing scheme.

The land, measuring 32.7ha, stood at an elevation of more than 76m above sea level with a gradient exceeding 25 degrees. 

However, developer Sunway City then took the case to the High Court, which on May 29, 2017, overturned this decision and restored the approval to develop the property.

The Court of Appeal, on May 7, 2021, dismissed the residents’ appeal. 

The crux of the appeal was whether the Penang Structure Plan 2020 regulates development on hillslopes 76.2m above sea level with a gradient that exceeds 25 degrees.

The residents subsequently appealed to the Federal Court.

The developer and the council, as two of the respondents, were ordered to pay a total RM300,000 in costs to the residents.

No order to costs was made against the third respondent, the Appeals Board. 

Gurdial Singh Nijar, Jessica Binwani and Abraham Au represented the residents, while counsel Cyrus Das and Christina Siew appeared for Sunway City. Karin Lim and M. Murugan represented MBPP. – January 20, 2023.

The Federal Court has today ruled in favour of Sungai Ara residents in Penang, who have been campaigning to stop a proposed development of the hillside near their homes. – The Malaysian Insight file pic, January 20, 2023.


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  • Does the Penang State Planning Committee (SPC) which is headed by the Chief Minister feel ASHAMED of this? It was mischievous of the SPC to bend backwards to label this a "SPECIAL PROJECT", trying to fool the rakyat. "Special projects" are those like the construction of electricity pylons on hills, dams, radar stations for defense purposes, etc.. This project by Sunway City (Penng) Sdn Bhd was for the construction of luxurious residences. Who was the smart guy on the SPC who twisted the definition of "special projects" to mean luxury homes on a sensitive hill slope? Why did he do so?

    Posted 3 years ago by Ravinder Singh · Reply