In a significant move toward urban redevelopment, the Railway Assets Corporation (RAC) has officially signed a Memorandum of Understanding (MoU) with the Penang State Housing Board (LPNPP) for the redevelopment of Kampung Manis in Perai through a collaborative effort.

The MoU was signed between RAC’s Chief Executive Officer, Dato’ Azhar Ahmad, and LPNPP’s General Manager, ‘Ainul Fadhilah Samsudi. The signing ceremony was attended by Chief Minister Y.A.B. Tuan Chow Kon Yeow and Malaysian Transport Minister Anthony Loke Siew Fook.

Chief Minister Kon Yeow emphasized the historic collaboration between RAC and the Penang State Government, aiming to develop affordable housing projects on Lot 286 in Perai, also known as Kampung Manis. He mentioned that the MoU could potentially translate into a Memorandum of Agreement (MOA) if additional needs arise after the Request for Proposal (RFP) is finalized.

The comprehensive development in this area is considered vital as LPNPP has plans to develop a nearby site on Lot 671 in Perai, spanning 9.33 acres and located 1.2 kilometers from the current project site. The holistic approach is essential to address the challenges of the unplanned residential area, lacking systematic drainage systems that contribute to flooding issues.

“The development of two projects by RAC and LPNPP in this area will transform the existing settlement into a more organized and efficient housing development for the well-being of the local community,” stated Kon Yeow during the MoU signing ceremony.

Kon Yeow further highlighted that the redevelopment of Kampung Manis could stimulate economic growth with commercial spaces generating income and employment opportunities. The planned development also promises a more organized infrastructure with smoother traffic flow.

“The synergy between the State Government and the Federal Government in developing Kampung Manis is for the benefit of the people of Penang. I hope that this pioneering redevelopment project will open up more opportunities for collaboration between RAC and the State Government in the future,” added Kon Yeow, who is also the State Assemblyman for Padang Kota and Member of Parliament for Batu Kawan.

Transport Minister Siew Fook emphasized that the MoU signing would transform three land areas owned by RAC in Kampung Manis from slum areas into modern, developed spaces equipped with various facilities, including commercial centers.

“The planned development concept on this land will not only focus on commercial aspects but will also include other components such as transportation hubs, retail spaces, educational institutions, and, most importantly, housing. All these components are crucial to creating a developing area that will directly impact socio-economic development, population mobility, and improve the overall quality of life,” stated Siew Fook.

Earlier, the State Government expressed its commitment to addressing various issues affecting over 289 families in Kampung Manis through the redevelopment plan.