Hunza Properties Bhd is spearheading Penang’s first urban renewal project—an ambitious RM600 million redevelopment of the Mahsuri Flats in Bayan Baru—without requiring a single resident to vacate their home during construction. This pioneering approach sets a new benchmark for community-first development in Malaysia.

Located on a 2.6-hectare site directly across from the Bayan Lepas Industrial Estate, the original five blocks of four-storey walk-up flats, built in 1976, will be replaced by three high-rise towers of 38, 46, and 33 storeys. The entire project aims to revitalise one of Penang’s most mature and densely populated neighbourhoods, increasing housing quality while making efficient use of under-utilised land.

Construction of the first tower, which will reach 38 storeys, began last month. This block will house 300 new “compensation units” to accommodate all current residents of the Mahsuri Flats. Only once this relocation is complete will the old buildings be demolished—a deliberate strategy designed to avoid the disruptions typically associated with urban renewal.

The new units will be significantly larger, ranging from 850 to 900 square feet, compared to the original flats that measured between 250 and 500 square feet. Residents will receive these upgraded homes at no additional cost, aside from legal title processing and standardised maintenance fees.

Following the relocation, the second phase will involve the construction of a 46-storey affordable housing block with 770 units, each measuring 881 square feet, alongside three floors of shop offices. The final phase will introduce a 33-storey serviced apartment tower with a mix of 500 to 1,055 square foot units and four additional floors of commercial space.

According to Penang state housing committee chairman Datuk Seri S. Sundarajoo, this development is not only about infrastructure—it represents a sustainable model of urban renewal that benefits all stakeholders. “It’s a win-win situation. Families get better homes, the developer benefits from marketable projects and the state recovers value from under-utilised land,” he said.

The total gross development value (GDV) of the project is RM597.84 million. It also forms part of a broader state initiative to revitalise ageing housing schemes across Penang, with four other sites identified for future renewal. However, such efforts face challenges, particularly the need for full consensus from residents and the complexities of temporary relocation in denser areas.

This project by Hunza exemplifies a forward-looking approach to housing development, combining vertical growth strategies with thoughtful community engagement. As Penang continues to confront land scarcity and the limitations of aging buildings, this urban renewal effort may serve as a blueprint for future redevelopment initiatives across Malaysia.

Fort Cornwallis, one of Penang’s most iconic historical landmarks, is undergoing a major revival with the near completion of its moat restoration project. Spearheaded by the Penang government with support from Think City and Yayasan Hasanah, the initiative marks a significant step in preserving and enhancing the site’s heritage and ecological value.

The Southern moat was successfully restored in July 2024, while work on the Western moat is expected to finish by July this year. Together, they form a 4,000 sq m water basin, 0.9 metres deep, capable of holding around 3,600 cubic metres of water.

Valued at RM23.4 million—of which RM15.3 million is state-funded—the project employs traditional building techniques and sustainable design. The moat features a mechanical sand filter and a vegetated bio-retention swale, which support water filtration and biodiversity.

Chief Minister Chow Kon Yeow highlighted that the restoration aligns with the United Nations Sustainable Development Goals (SDGs), focusing on ecological resilience, climate adaptation, and public engagement.

This project not only revitalises Fort Cornwallis’s historical structure but also reinforces Penang’s commitment to sustainable urban heritage conservation.

About Ari Altitude

An affordable condominium project by PTL Alpha Sdn. Bhd., a subsidiary of PTL Properties Sdn. Bhd., located in the well-established township of Alma, Bukit Mertajam. Situated along Jalan Santuari 3, less than 5 minutes drive from Lotus’s and AEON Mall via Jalan Rozhan and approximately 15 minutes from both Penang’s first and second bridges. It features 500 residential units, each with a built-up size of 950 sq. ft.

*Photo taken in Apr 2025

Find out more about Ari Altitude

The proposed Penang undersea tunnel remains a relevant solution to alleviate congestion on the first Penang bridge, according to state infrastructure, transport and digital committee chairman Zairil Khir Johari.

Speaking at the state legislative assembly, Zairil said the tunnel would help reduce traffic flow in both directions on the bridge and surrounding roads by offering an alternative route for vehicles. “This will divert traffic to the undersea tunnel and ease severe congestion on roads leading to the first bridge,” he noted in response to a question from Machang Bubuk assemblyman Lee Khai Loon.

He added that a new design for the tunnel is currently in development. “This revised design is intended to ensure the continuity and direction of the third link project, while also improving its efficiency, feasibility, and overall impact,” Zairil said.

The new proposal aims to accommodate all vehicle types and incorporate environmental and social considerations. It is also envisioned to become a new icon for Penang, blending infrastructure with tourism potential.

However, Zairil emphasized that the final decision on the project’s implementation will depend on the findings of the feasibility study currently underway.

The Penang International Airport (PIA) expansion project is progressing steadily, with Phase One expected to be completed by the end of this year. As of now, construction work has reached nearly 38% completion.

State Infrastructure, Transport and Digital Committee chairman Zairil Khir Johari announced that Work Package 1 (WP1) has surpassed the 37% mark. WP1 covers critical enabling and upgrading works, including the construction of an ancillary building, a new air traffic control tower, the Civil Aviation Authority of Malaysia (CAAM) office, an aviation security tower, substations, and other supporting infrastructure.

Zairil also revealed that physical construction under Work Package 2 (WP2) commenced last month. This package focuses on upgrading the airport’s apron, taxiways, airside drainage, utilities diversion, and related infrastructure. WP2 was awarded to Acre Works Sdn Bhd in December 2024, with a contract value of RM254.6 million.

Looking ahead, the tender for Work Package 3 (WP3)—which involves expanding the new passenger terminal building—will be called in June. The new terminal is scheduled to begin operations in 2027, with full project completion targeted for 2028.