Perbadanan Bekalan Air Pulau Pinang (PBAPP) is investing RM250 million to build a new water treatment plant (WTP) near Mengkuang Dam to strengthen water supply in Penang.

Chief Minister Y.A.B. Chow Kon Yeow said the new Mengkuang Taman WTP, located about 550 meters from the dam, is designed with a maximum treatment capacity of 114 million litres per day (MLD). The project is expected to take 18 months to complete, with targeted completion by November 2026.

“Once completed, the status of Mengkuang Dam will shift from the current Enlarged Mengkuang Dam (EMD) classification to a dual-purpose dam,” Chow said during the groundbreaking ceremony on May 24, 2025.

This transition, he added, will help reduce the state’s reliance on the Sungai Dua WTP, currently the main source of treated water in Penang.

PBAPP Chief Executive Officer, Dato’ Ir. K. Pathmanathan, shared that since January 2021, the dam’s capacity has consistently remained above 85%, reflecting its reliability as a raw water source.

The EMD has an effective capacity of 86,400 million litres – equivalent to 4.7 times the Teluk Bahang Dam and 40 times the Air Itam Dam.

“The primary goal of the Mengkuang Taman WTP is to produce up to 114 MLD of additional treated water for the Seberang Perai Tengah (SPT) district,” Pathmanathan explained.

The project is a strategic move to support growing water demand in the region, especially in the face of climate change and urban expansion.

Penang’s architectural heritage has suffered a significant loss with the demolition of the iconic Boon Siew Villa in Batu Ferringhi. Once a majestic seafront home, the villa stood as a testament to the legacy of Tan Sri Loh Boon Siew, the self-made tycoon who brought Honda motorcycles to Malaysia. Its removal marks yet another chapter in the island’s struggle to balance progress with preservation.

The villa, located at Shamrock Beach, has been torn down to make way for the upcoming 43-storey Ascott Residences Batu Ferringhi, a luxury condominium project set to be completed by January 2028. Hoardings now surround the site, and construction is underway, signalling the end of an era for a building that once commanded sweeping views of the Tanjung Bungah coastline.

For residents and heritage advocates, the demolition is deeply felt. “The Boon Siew Villa was not just a house; it was a living part of Penang’s history,” said Clement Liang, president of the Penang Heritage Trust (PHT). “It is deeply regrettable that the developer chose to demolish it rather than incorporate it into their plans.”

Liang highlighted a growing concern: the lack of legal protection for historical buildings outside the George Town World Heritage Site. Many of these structures, though rich in character and cultural value, remain vulnerable to the pressures of rapid urban development.

Last October, Singapore-based The Ascott Ltd partnered with VST Property Group’s Instant Icon Sdn Bhd to launch the Ascott Residences Batu Ferringhi. The upscale development is marketed as a new standard in luxury living on the island’s northern coast. However, heritage groups argue that the cost of such progress is too high.

“The loss of such landmarks is like erasing part of the city’s memory,” Liang warned. “Each time a historical building is replaced, we lose a part of what makes Penang unique.”

He added that more buildings, including the Art Deco structures along Chow Thye Road, could soon meet a similar fate if stronger preservation laws are not enforced. Without legal safeguards, private owners are free to redevelop heritage properties, often at the expense of cultural identity.

As Penang continues to evolve, the challenge remains: can development and heritage preservation coexist, or will progress continue to come at the cost of the past?

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

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