The Penang state government will discuss with the relevant authorities following reports that the Environmental Impact Assessment (EIA) for the proposed Jelutong landfill rehabilitation and reclamation project has been rejected by the Department of Environment (DOE).

Chief Minister Chow Kon Yeow said he was not aware of the rejection reflected on the EIA portal and would need to verify the information before commenting further.

“I am not aware of the matter yet. We will discuss it with the relevant authorities and obtain more information,” he said during a press conference at the Penang Skills Development Centre in Bayan Baru.

According to the DOE’s online portal, the EIA submission for the proposed project has been classified as “not approved”.

The RM1 billion proposal involves rehabilitating the former Jelutong landfill and reclaiming adjacent coastal land north of the Penang Bridge. The reclaimed land is intended to temporarily store waste excavated from the landfill before the area is eventually transformed into a mixed-use development.

The site spans about 65 hectares, comprising 36 hectares of the former landfill and 29 hectares of newly reclaimed land next to the Karpal Singh Drive waterfront.

The project was first formalised in 2020 when the Penang Development Corporation signed an agreement with PLB Engineering Bhd to undertake the rehabilitation and reclamation works. The works were expected to take four to five years to complete, although no visible work has commenced since the agreement was signed.

The proposal has faced opposition from residents and environmental groups, including those associated with the Protect Karpal Singh Drive Action Committee. The group recently urged the state government not to grant the developer additional time if the EIA was not approved.

Environmentalists have also expressed concerns that reclamation near the old landfill could impact public health and harm the nearby Middle Bank, a shallow coastal area known for its extensive seagrass beds and marine biodiversity.

The Middle Bank sanctuary covers about 10 square kilometres in the South Channel between Penang Island and the mainland and supports more than 400 species of flora and fauna, including endangered green turtles, dugongs, seahorses and the critically endangered horseshoe crab.

Previously, Chow said reclamation was necessary to provide sufficient space for the landfill rehabilitation works while ensuring the sensitive marine ecosystem at Middle Bank would not be affected. He added that the state government would take steps to avoid encroaching on the sanctuary area and consider public feedback received during the EIA process.

The Penang state government is currently focusing on land acquisition and the resettlement of residents affected by the implementation of the Mutiara Line Light Rail Transit (LRT) project.

Chief Minister Chow Kon Yeow said work related to the project is progressing according to schedule, with the state government responsible for managing land acquisition matters and relocating affected residents before the sites are handed over to the contractor.

“At this stage, we see that various schedules have been set to complete the relocation process and hand over the site to the contractor,” he said when met at the Chinese New Year Banquet and Women’s Day Celebration organised by the Penang Chinese Women’s Chamber of Commerce (PWCC) yesterday.

Chow added that other aspects of the project, including engineering works and project contracts, are handled by the developer, Mass Rapid Transit Corporation (MRT Corp), together with the appointed contractor.

So far, only a small number of homes are affected by the project alignment.

“There are not many cases, only about a dozen houses because the project line enters the village next to the Road Transport Department (JPJ) office in Sungai Dua,” he said, noting that around 12 houses have been identified for relocation.

Construction of the Mutiara Line LRT began in 2025 and the line is expected to commence operations in December 2031.

The rail line will span approximately 29.67 kilometres, featuring 20 stations and two provisional stations. Once completed, it is expected to improve connectivity between Penang Island and the mainland while helping to reduce traffic congestion and enhance overall accessibility.

Heng Guan Development (HGD) has officially broken ground on the Balik Pulau Commercial Centre (BPCC), a boutique commercial project located within the Balik Pulau township on Penang Island.

The development comprises 13 units of two-storey shop offices with built-up areas ranging from 2,800 sq ft to 3,802 sq ft. Built on a 1.46-acre site, the project carries a gross development value (GDV) of RM18.3 million.

According to HGD, the entire development has been fully taken up prior to construction. All units were acquired to consolidate premises for a supermarket operator that will serve the surrounding residential communities.

Strategically located in the Balik Pulau area, BPCC is positioned as a neighbourhood-scale commercial hub aimed at supporting nearby residential catchments, including the Prince of Wales Island International School and several established housing developments in the vicinity.

The developer said the project aligns with its strategy of delivering community-focused developments while strengthening its footprint across the Northern Region.

“BPCC represents another milestone in HGD’s continued growth in the Northern Region. As we expand our development portfolio, we remain committed to delivering well-positioned projects that meet the evolving needs of local communities,” the company said.

HGD added that the project forms part of its broader plan to introduce community-scale commercial developments in emerging growth areas, where expanding residential populations are driving demand for neighbourhood retail and services.

The company currently has several ongoing developments across Penang and Kedah as it gradually expands beyond its traditional markets.

Construction of BPCC is expected to commence immediately following the groundbreaking ceremony.

Eastern & Oriental Bhd (E&O) reported a 105.6% year-on-year increase in net profit attributable to owners of the parent to RM63.51 million for the third quarter ended Dec 31, 2025 (3QFY2026), compared with RM30.90 million a year earlier.

Revenue for the quarter rose 45.4% to RM243.92 million, from RM167.74 million previously, according to its filing with Bursa Malaysia today (Feb 26). Basic earnings per share improved to 2.55 sen, from 1.39 sen a year ago.

Operational performance and forex impact

Profit before tax for the quarter increased to RM85.97 million, compared with RM45.54 million in 3QFY2025. The quarter included an unrealised foreign exchange loss of RM26.91 million, as disclosed under additional income statement notes. Excluding this non-cash item, profit before tax would have been higher, reflecting stronger operating performance from the property segment.

For the nine months ended Dec 31, 2025 (9MFY2026), the group recorded:

• Revenue of RM631.79 million (9MFY2025: RM504.43 million)
• Profit before tax of RM220.44 million (9MFY2025: RM144.46 million)
• Net profit attributable to owners of RM159.17 million (9MFY2025: RM98.80 million

Property segment drives growth

The properties segment remained the primary earnings contributor. For 9MFY2026, the segment recorded:

• Revenue of RM547.64 million, up 29.5% from RM422.91 million
• Operating profit of RM207.05 million, compared with RM145.69 million previously

The increase was mainly attributed to higher revenue recognition from ongoing projects including Fera, Senna Phases 1 and 2, The Lume and Arica, as well as contributions from newer launches such as Maris, Senna Phases 3 and 4, and Laman Embun in Elmina West. E&O also noted that Avea on Andaman Island (a premier reclaimed island development in Penang) and Seri Embun in Elmina received encouraging market response during the period.

Infrastructure catalyst: Gurney Bridge

In December, the group commemorated the opening of the Gurney Bridge, an eight-lane link connecting Andaman Island to Gurney Drive. According to the company, the bridge enhances accessibility between the island and Penang’s established commercial and tourist belt, with travel time reduced to approximately five minutes.

Current launches on Andaman Island are achieving indicative pricing of RM900 to RM1,000 psf, based on company disclosures.

The group is also aiming for reclamation works for Phase 2 of Andaman Island to be completed by end-2027, about a year ahead of schedule.

E&O expects to secure additional financing to fund infrastructure and working capital requirements for the 507-acre Phase 2 development.

Analyst commentary and valuation

Institutional research houses have noted that E&O’s pivot toward high-margin luxury developments on Andaman Island is a primary driver for its current valuation recovery. Analysts highlight that the 50.5% gross profit margin achieved this quarter provides a significant buffer against sector-wide inflationary pressures.

Hospitality and investments

The hospitality segment recorded revenue of RM79.54 million for 9MFY2026, marginally higher than RM76.63 million previously. Operating profit eased slightly to RM16.60 million from RM18.21 million, mainly due to higher operating costs. The investments and others segment returned to an operating profit of RM1.47 million, compared with an operating loss of RM13.83 million in the preceding year, supported by lower foreign exchange losses and higher interest income.

Balance sheet position

As at Dec 31, 2025:

• Total assets stood at RM4.58 billion; total liabilities were RM2.24 billion.
• Net assets attributable to owners of the parent were RM2.32 billion.
• Net assets per share attributable to owners improved to RM1, from RM0.93 as at March 31, 2025.

Cash and bank balances amounted to RM431.24 million, while total borrowings stood at RM2.25 billion, comprising RM579.20 million in short-term facilities and RM1.67 billion in long-term loans.

Dividend: The board declared an interim dividend of one sen per ordinary share for the financial year ending March 31, 2026. The entitlement and payment dates will be announced in due course.

Corporate proposal: On Aug 20, 2025, an indirect wholly owned subsidiary entered into a sale and purchase agreement for the disposal of two freehold land parcels in London for a minimum consideration of £75 million (approximately RM427.8 million). The disposal has not been completed as at Feb 19, 2026.

Source: EdgeProp.my

Cantonment Residence, a high-rise residential development on a 1.05-acre site within the upscale neighborhood near Jalan Cantonment in George Town. Strategically located adjacent to Disted College and just a stone’s throw from the Penang Turf Club.

The project comprises a single 34-storey condominium block, featuring 128 residential units spread across 25 floors. Beneath, a 10-level podium is planned to accommodate parking bays, community facilities, and utility spaces.

Project Name : Cantonment Residence
Location : George Town
Property Type : Condominium
Tenure: (to be confirmed)
Land Area: 1.05 acre
Built-up Size: 2,009 sq.ft. – 4,540 sq.ft.
Total Units : 128
Indicative Price : RM2.6mil onwards
Developer : Aspira Gardens Sdn. Bhd.