THE Penang south reclamation was introduced as a funding module for the Penang Transport Master Plan.

But Putrajaya has since announced that it would finance the proposed George Town-Bayan Lepas LRT system if Penang would agree to scale down the reclamamation project, which the state agreed to do.

The chief minister said the scaling down means only 115 instead of 500 fishermen will be affected by the work to reclaim land in south of Penang island. The state will now only build one artificial island – Silicon Island – instead of three. The work will take 30 years to complete. The first phase will take seven to 10 years and the LRT terminal is slated to be built there.

But the livelihoods of some 1,600 members of the Penang Fishermen’s Association (PFA) will be wiped out because Silicon Island is to be built on shrimp spawning ground. The work will destroy the marine ecosystem with its mudflats and coral reefs that serve as habitats for sea creatures.

The project’s environmental impact assessment (EIA) for three islands was approved in April, subject to the fulfilment of 71 conditions. The original 2019 approval was rescinded in 2021 on the grounds that the project was not gazetted under the 2030 Penang Structure Plan. If that were the case, wasn’t the project a blatant disregard of the law?

The 71 conditions, hopefully to be made public, include a requirement a social impact management plan (SIMP) and ecology offset masterplan. 

The economic valuation of environmental impacts showed an annual service loss of between RM240 million and RM450 million over 50 years..

The rationalisation for the project – GDP growth, foreign direct investments and job creation – needs to be revisited. 

The question now is, is there a need to reclaim land for sale now that the federal government is funding the Penang LRT system?

But the EIA report did not make any mention of the LRT project. Also, will the LRT resolve Penang’s traffic nightmares?

The estimated costs keep rising  –  from RM4.5 billion in 2015 to about RM10 billion now. What will it cost in 2033 when the reclamation project is completed ?

Who will pay the operations and maintenance cost, estimated between RM170-RM300 million per year? 

The prime minister has called on the Employees Provident Fund (EPF) to shift its investment portfolio to comprise 70% domestic investments, especially in strategic infrastructure, by year end. Hopefully, it is not to finance this project. The EPF investment panel must remain independent and professional and work without government interference.

True, public transport is necessary for people to move around and stay connected. But what about first and last-mile connectivity and alignment? 

Why don’t Penang reconsider the Halcrow consultants’ blueprint, which proposes buses, modern trams and water taxis to ease congestion in the state. For the same capital outlay, the plan could serve the entire state. It also costs less to maintain and is quickly operational. 

The prime minister once visited Sungai Batu to meet the fishermen and promised to help them. “Whatever the project may be, never sacrifice the interests of the people,” he was quoted as saying.

But PFA said its two letters to the leader asking for a meeting have been met with silence.

Lastly, did the special advisory body to the finance minister offer counsel on the subject? Was advice even sought? Hopefully, Hassan Marican has something to say.

What say you… – May 13, 2023.

* Saleh Mohammed reads The Malaysian Insight.

* This is the opinion of the writer or publication and does not necessarily represent the views of The Malaysian Insight. Article may be edited for brevity and clarity.