Paramount Property (Butterworth) Sdn Bhd has signed a development agreement with the Penang State Housing Board (LPNPP) to undertake the redevelopment of Kampung Ujong Batu in Butterworth. Covering 15.87 acres, the project aims to transform the existing area into a more organised residential neighbourhood while addressing the housing needs and welfare of the local community. The redevelopment will include 350 Rumah MutiaraKu affordable housing units.

Penang Chief Minister Chow Kon Yeow, who attended the signing ceremony yesterday, said the project reflects the state government’s approach of balancing urban renewal with social responsibility. Eligible existing residents will be offered homes free of charge as part of the redevelopment initiative. He added that the state government intends to recover the land costs borne by private developers for social housing projects without imposing a profit margin on these initiatives.

The project also supports the state’s Penang2030 vision, which targets the provision of 220,000 housing units for Penang residents. LPNPP is currently overseeing various housing initiatives at different stages, including projects under implementation, planning, feasibility assessment and tender.

The Kampung Ujong Batu redevelopment proposal went through three Requests for Proposal (RFP) exercises conducted by LPNPP between November 2024 and February 2026, but none attracted interested parties. Following further consideration, the state executive council and LPNPP’s procurement board agreed in April and May 2026 respectively to proceed through direct negotiations, after which Paramount Property expressed interest in undertaking the project.

Paramount Property group chief executive officer Jeffrey Chew Sun Teong said the company appreciated the confidence placed in it by the state government and LPNPP. With nearly four decades of experience in property development, he said redevelopment involves more than physical construction, requiring consideration of the needs of existing communities and their longstanding connections to the area. The company will work closely with LPNPP and the state government throughout the implementation process.

The signing marks an initial step towards the redevelopment, with further procedures still required, including the preparation of development plans and obtaining planning permission. The project will proceed subject to the necessary planning and approval processes.

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