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.

About Maritime Signature

A 45-storey commercial development along Karpal Singh Drive. It comprises 232 office suites, several retail outlets, and sky-level facilities including a bar, restaurant, infinity pool, and gym. Situated beside the Lim Chong Eu Expressway, the project offers views of the sea and city skyline, with convenient access to George Town and Bayan Lepas.

Find out more about Maritime Signature

Eastern & Oriental Berhad (E&O) has been recognised by the Malaysia Book of Records (MBOR) for the Gurney Bridge at Andaman Island here as the ‘Widest Box Girder Bridge in Malaysia’.

E&O managing director Kok Tuck Cheong received the recognition from MBOR chief executive officer Christopher Wong during The Meg Appreciation Evening here, witnessed by Chief Minister Chow Kon Yeow and E&O executive chairman Datuk Seri Tee Eng Ho.

In a statement yesterday, E&O said the 450-metre bridge spanning the sea and measuring 40 metres wide features eight vehicular lanes as well as dedicated pedestrian walkways on both sides, linking Andaman Island to Gurney Drive and improving connectivity along Penang’s northern coastline.

PDC will reopen bidding for the proposed 226-hectare Batu Kawan Industrial Park 2 (BKIP2) project in Byram after the second request for proposal (RFP) failed to materialise.

Chief Minister Chow Kon Yeow said the second RFP, which was advertised on March 10 last year, attracted two bidders. However, the process could not proceed after the successful bidder’s strategic or joint-venture partner withdrew from the proposal.

According to Chow, the bidder also failed to meet several key conditions outlined in the RFP requirements.

“As such, the PDC board has agreed to recall the RFP and will advertise it again soon,” he said in a written reply during the state assembly sitting.

The response was made to Batu Kawan Industrial Park-related questions raised by Lee Khai Loon regarding the status of the second bidding exercise.

Chow added that if the upcoming RFP still fails to secure a suitable strategic partner, PDC would reassess all available options, including the corporation’s financial position, project viability, and prevailing market conditions.

No details were disclosed regarding the successful bidder, the competing bidder, the proposed bid values, or the agreement terms.

The RM3.5 billion BKIP2 project previously drew public attention in 2023 when PDC signed a joint development agreement with Umech Land Sdn Bhd. The deal involved the sale of land valued at RM646.02 million.

However, the agreement was later terminated following scrutiny over the project valuation and ownership changes after Sunway Bhd acquired a 70% stake in Umech Land shortly before the agreement was signed.

In 2024, a consortium led by IJM Properties submitted an RM818 million proposal, but it was rejected for failing to comply with several key RFP requirements.

A Penang state assemblyman has proposed introducing a 3% property transfer premium on non-Penang buyers or sellers in an effort to curb speculative property activities and improve housing affordability for locals.

During the debate on the governor’s address at the state assembly, Ong Ah Teong said some outstation buyers viewed Penang properties primarily as investment assets rather than homes, contributing to artificial demand and rising property prices.

He proposed amendments to state land laws and regulations to impose a 3% transfer premium on buyers or sellers who are not Penang-born, permanent residents, or registered Penang voters for at least three terms.

According to Ong, the measure could help ensure the local housing market better serves Penangites instead of speculative investors.

“Property is a human right, not a speculative commodity for profit and wealth,” he said during the assembly sitting.

Ong also highlighted concerns over the growing number of unsold residential units in the state. He noted that Penang recorded 14,344 unsold homes as of the second quarter of 2024, with most units concentrated in the higher-priced segment.

He warned that the situation could worsen if developers continue prioritising high-end developments that offer better profit margins, potentially resulting in more unsold properties and a market mismatch for ordinary homebuyers.

The Batu Lanchang assemblyman further cautioned that excessive speculation could eventually contribute to a property bubble, leaving local residents to bear the economic consequences if the market weakens.

He suggested that revenue collected from the proposed levy could be channelled into a housing trust fund to support Rumah Mutiaraku projects as well as rent-to-own initiatives for the B40 group and young Penangites.

Ong also cited similar ownership controls implemented in places such as Kelantan, Sabah, Sarawak, Singapore, and Spain.