Penang govt calls for RFP on development of resort in Batu Ferringhi


The Chief Minister of Penang Incorporated (CMI) has been given the mandate to spearhead the initiative of calling for a Request for Proposal (RFP) for the development of a site in Batu Ferringhi into a Coastal Resort and Spa.

Chief Minister Chow Kon Yeow said the 4.2-acre land, at PT 223, Section 2, Bandar Batu Ferringhi, had been vacant for years.

“It was an old relocation site for the Penang tsunami victims. There were temporary houses for the victims in the past. The site was under the purview of CMI.

“There was a Request for Proposal in the past but there was no suitable proposal at that time.”

The proposed site is located between the Moonlight Bay beach and Miami beach.

Chow said the project was proposed to be undertaken by a private entity (also known as a project sponsor) based on the BOT (design and build – operate – transfer) framework.

“The lease period is 30 years, thereafter, options will be given to renew another two 30-year periods, consecutively from the date when the offer is accepted.

“The project sponsor must provide convincing evidence that it has a strong financial backing with a minimum paid up capital of RM5 million and can successfully arrange financing for the project.

“The estimated cost of the project ranges between RM10 million and RM100 million, depending on the number of proposed rooms (up to 100 rooms) by the project sponsor.

Chow said that interested bidders could propose other amenities (not stated in the development programme listed in the RFP) that they deemed fit, subject to the appropriateness of the development.

“According to the development programme, the project sponsor is required to propose a five star or above hotel facilities with spa concept and to create a low density, niche and unique tourism product to position Penang as an attractive international tourist destination,” he told a press conference at Dewan Sri Pinang today.

CMI deputy general manager S. Bharathi said the proposed project would bring the state’s tourism to a greater height.

“Interested parties can buy the RFP documents and submit them to CMI. CMI will then conduct its assessment on the bidders before presenting the proposals to the state executive council,” she said.

An RFP has been called on Nov 1 this year. The closing date for the RFP is on Dec 31 this year. Bidders are requested to submit their proposals before noon on Dec 31.

The RFP can be downloaded from the Penang government portal at http://www.penang.gov.my/

The completed proposal should be sealed in an envelope. The title ‘Request for Proposal For The Development Of Coastal Resort and Spa, North East District, Penang, Malaysia’ must be clearly marked at the top right-hand corner of the parcel.

Bidders can submit their proposals to The Secretariat, Chief Minister of Penang Incorporated (CMI), Level 47, Komtar, 10503 Penang, Malaysia.

For further details, call 04-650 5711 / 04-650 5679.

On a separate note, Chow said that the state government had received a proposal from a private company to build a mixed development project on a 300-acre land; proposed to be reclaimed off the coast in Batu Ferringhi, near the Batu Ferringhi Army Camp.

“The private company has proposed to build a mixed development project, comprises hotels, commercial lots and service apartments.

“The Penang government has received various proposals throughout the year.

“As for this private company, it still has to undergo a long process to obtain the necessary approvals.

“The state can opt to call for an RFP despite it being proposed by a company,” he said.

Meanwhile, Penang Local Government, Housing, Town and Country Planning Committee chairman Jagdeep Singh Deo said that the private company had not submitted any master plan pertaining to the proposed mixed development project.

“It is still in its early ‘proposal stage’. The state government will view the 300-acre land reclamation proposal when the master plan is submitted,” Jagdeep answered a written question at the State Legislative Assembly.

Source: Buletin Mutiara


  1. Sammy
    November 5th, 2019 at 15:58 | #1

    It is about time to develop batu ferringhi after such an insipid long hibernation. Go for a road show in overseas. Maybe China or Japan ? Our own developers are just hopeless !

  2. Gabriel
    November 5th, 2019 at 16:55 | #2

    We should build a large Hindu deity statue at Batu Feringhi to pull more tourist from India there. After that, we can let them buy the RM600k priced house on the reclaimed land. That way, us developer can guarantee that our property units will be sold and we can make profit.

  3. Gabriel
    November 5th, 2019 at 16:57 | #3

    I’m actually looking forward for the reclaimed land proposal since it will help eliminate flooding issues like what our Minister Jagdeep said.
    Kudos to them for a very good proposal.

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