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After 70 years of uncertainty, 174 families in Kampung Manis, Perai, are a step closer to securing new homes under a redevelopment project that will provide replacement units free of charge.

The affected households have agreed to vacate their existing premises after receiving consent documents from Railway Asset Corporation (RAC) and the Penang Housing Board (LPNPP), marking a major milestone for the long-awaited Kampung Manis redevelopment.

Under the relocation arrangement, each of the 174 households will receive an 850 sq ft replacement home valued at approximately RM400,000, at no cost, in exchange for their existing homes.

Penang Housing and Environment Committee chairman Datuk Seri Sundarajoo Somu said the replacement units would be more spacious than the typical 650 sq ft homes provided under similar schemes.

For property owners with historical ties to Kampung Manis who no longer reside there permanently, the state government will offer similar units at RM150,000 through a rent-to-own scheme.

The redevelopment, known as Rivanis, will be undertaken by Kerjaya Prospek Group Bhd and Aspen Vision Development Sdn Bhd through their joint venture, Rivanis Ventures Sdn Bhd.

As reported in June, the wider project covers 34.84 acres of RAC-owned land in Prai and is planned as a mixed-use development to be implemented in phases over seven years.

The Kampung Manis relocation component involves approximately 3.97 acres of RAC-owned land covering parts of Lots 286, 65 and 67 in Bandar Perai.

Phase One will comprise 338 residential units, together with facilities including a swimming pool and car park.

Construction is expected to begin towards the end of this year or early next year, subject to the necessary development approvals from the relevant authorities, including the Seberang Perai City Council (MBSP).

Residents who need to move out temporarily during construction will receive RM700 in monthly rental assistance from the developer until their new homes are completed.

The project is expected to take approximately 24 months to complete from the approval of the development plans.

Chief Minister Chow Kon Yeow said the latest agreement followed the signing of a Memorandum of Understanding and a Memorandum of Agreement between the relevant parties on Nov 11, 2024, followed by nearly two years of negotiations to resolve outstanding issues and secure a developer.

Chow expressed hope that the necessary plans could be submitted and approved promptly to allow construction to begin in the coming months.

The relocation initiative represents a significant step towards resolving a decades-long housing issue while paving the way for the wider transformation of the RAC-owned site in Perai.

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