The Penang state government has moved to reassure the public that a controversial high-density development proposed for Bandar Gelugor will face rigorous evaluation before any approval is granted.

State Local Government Committee chairman H’ng Mooi Lye told the state legislative assembly that all development applications are assessed holistically, taking into account technical requirements, public interest, and sustainable development principles. “The state government remains committed to ensuring that every proposed development is carried out in a planned and sustainable manner, in compliance with all development principles, guidelines and applicable laws,” he said.

His remarks came on the same day a group of residents staged a peaceful protest outside the assembly, calling on the state to halt the project.

The project in question

The development, proposed by I-Global Property Network Sdn Bhd, involves four residential apartment towers (two 45-storey blocks and two 61-storey blocks), alongside office and commercial components on a 5.8-hectare parcel of former Telekom Malaysia land at Lot 642, Bandar Gelugor. Tens of thousands of residents from surrounding neighbourhoods have voiced opposition, citing concerns over traffic congestion, infrastructure capacity, and the loss of green spaces.

Where the approvals process stands

The State Planning Committee ruled on 30 October 2025 that the project must be referred to the National Physical Planning Council (MPFN) under Section 22(2A) of the Town and Country Planning Act 1976, given its potential high-impact implications. A Traffic Impact Assessment (TIA) and Social Impact Assessment (SIA) were also required as part of the evaluation.

The developer subsequently applied for an exemption from the MPFN referral through PLANMalaysia, but this was rejected by the State Planning Committee on 20 February, reaffirming the referral requirement. PLANMalaysia’s federal headquarters, however, has taken a different view — stating that the project does not require MPFN referral as it constitutes a vertical residential development rather than a new township, creating a point of divergence between state and federal planning authorities.

On the technical side, the TIA has been submitted to MBPP and is currently under review, while the Road Safety Audit remains with the Public Works Department. The SIA has yet to be submitted and will be evaluated by a state panel coordinated by PLANMalaysia Penang once available.

On environmental grounds, the Department of Environment has determined that the project does not trigger a mandatory Environmental Impact Assessment under the Environmental Quality (Prescribed Activities) Order 2015, though H’ng stressed that compliance with the Environmental Quality Act 1974 remains mandatory regardless.

Assemblymen weigh in

The project has also drawn scrutiny from state assemblymen representing Sungai Dua, Seri Delima, and Penanti, who raised concerns over traffic, infrastructure adequacy, and the impact on surrounding green spaces.

With impact assessments still pending and a jurisdictional question between state and federal planning authorities unresolved, the project remains some way from a final decision. Residents opposed to the development will be watching closely.

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