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After 70 years of uncertainty, 174 families in Kampung Manis, Perai, are a step closer to securing new homes under a redevelopment project that will provide replacement units free of charge.

The affected households have agreed to vacate their existing premises after receiving consent documents from Railway Asset Corporation (RAC) and the Penang Housing Board (LPNPP), marking a major milestone for the long-awaited Kampung Manis redevelopment.

Under the relocation arrangement, each of the 174 households will receive an 850 sq ft replacement home valued at approximately RM400,000, at no cost, in exchange for their existing homes.

Penang Housing and Environment Committee chairman Datuk Seri Sundarajoo Somu said the replacement units would be more spacious than the typical 650 sq ft homes provided under similar schemes.

For property owners with historical ties to Kampung Manis who no longer reside there permanently, the state government will offer similar units at RM150,000 through a rent-to-own scheme.

The redevelopment, known as Rivanis, will be undertaken by Kerjaya Prospek Group Bhd and Aspen Vision Development Sdn Bhd through their joint venture, Rivanis Ventures Sdn Bhd.

As reported in June, the wider project covers 34.84 acres of RAC-owned land in Prai and is planned as a mixed-use development to be implemented in phases over seven years.

The Kampung Manis relocation component involves approximately 3.97 acres of RAC-owned land covering parts of Lots 286, 65 and 67 in Bandar Perai.

Phase One will comprise 338 residential units, together with facilities including a swimming pool and car park.

Construction is expected to begin towards the end of this year or early next year, subject to the necessary development approvals from the relevant authorities, including the Seberang Perai City Council (MBSP).

Residents who need to move out temporarily during construction will receive RM700 in monthly rental assistance from the developer until their new homes are completed.

The project is expected to take approximately 24 months to complete from the approval of the development plans.

Chief Minister Chow Kon Yeow said the latest agreement followed the signing of a Memorandum of Understanding and a Memorandum of Agreement between the relevant parties on Nov 11, 2024, followed by nearly two years of negotiations to resolve outstanding issues and secure a developer.

Chow expressed hope that the necessary plans could be submitted and approved promptly to allow construction to begin in the coming months.

The relocation initiative represents a significant step towards resolving a decades-long housing issue while paving the way for the wider transformation of the RAC-owned site in Perai.

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UDA Holdings Berhad will allocate RM5 million to develop and upgrade recreational facilities and parks across Penang, with its first public recreational park planned on a 2.5-acre site next to its 8&8 condominium development in Tanjung Tokong.

Minister of Entrepreneur and Cooperatives Development Steven Steven Sim Chee Keong announced the allocation during the opening of UDA’s 8&8 condominium experience centre on Saturday (October 17).

The first park will be built beside the residential development, providing recreational space for residents and the surrounding community. The initiative is part of UDA’s efforts to enhance public amenities and create more accessible outdoor spaces in Penang.

While details of the other locations to benefit from the RM5 million allocation have not been announced, the funding is intended to support the development of new recreational facilities and the upgrading of existing parks across the state.

8&8 project to get freehold status

During the same event, Sim revealed that the Penang state government had agreed to convert the land tenure of UDA’s 8&8 condominium development in Tanjung Tokong from leasehold to freehold.

The project comprises two residential towers and is expected to be completed in 2029.

Sim also said UDA was offering the condominium units at a subsidised rate of RM700 per square foot, compared with prevailing land prices of approximately RM800 to RM1,000 per square foot in the area. He stressed that more accessible pricing should go hand in hand with good housing standards.

Penang Chief Minister Chow Kon Yeow today officiated the early launch of the Silicon Island Experience Centre, as the state’s ambitious 2,300-acre development reached a major milestone with 500 acres of land reclaimed as of October 2026.

Located at the development site, the 2,500-square-foot centre was completed in four months at a cost of RM2.5 million. It aims to provide investors, industry players and the public with a clearer understanding of Silicon Island’s master plan and long-term potential.

Chow described Silicon Island as more than a land reclamation project, saying it would serve as a strategic catalyst for Penang’s economic growth over the next 50 years.

“Fifty years ago, Penang took a bold leap into semiconductors. Today, Silicon Island marks our next chapter of ambition, creating new room for high-value technology, advanced packaging, research and development (R&D), and AI-driven innovation,” he said.

The development will feature an integrated ecosystem of high-tech industrial areas, residential and commercial developments, and green spaces, including a 700-acre Green Tech Park. It is also projected to generate more than 220,000 jobs across high-tech industries, the creative economy and modern services.

Sustainability will remain a key focus, with Silicon Island holding five-diamond accreditation under the Low Carbon Cities framework and targeting a 45% reduction in carbon emissions compared with conventional urban development.

State Infrastructure, Transport and Digital Committee chairman Zairil Khir Johari said the experience centre would feature an interactive LED scale model controlled via an iPad, allowing visitors to explore the development’s various components.

These include more than 110km of planned dedicated cycling and pedestrian paths, alongside 402 acres of designated green spaces, coastal parks and marine conservation zones.

Connectivity will be supported by the Pan Island Link 2A (PIL2A) project, including a bridge linking Permatang Damar Laut directly to Silicon Island. According to Penang Infrastructure Corporation Sdn Bhd (PICSB) chief executive officer Datuk Seri Farizan Darus, the first phase of PIL2A, costing RM420 million, is progressing, with the first section of the bridge targeted to open in December 2028. The full project is expected to be completed in June 2029.

Meanwhile, more than RM30 million has been channelled towards assistance for local fishermen, including ex-gratia payments, boats, engines and improvements to fishing facilities. Environmental mitigation measures include artificial reef placement and a phased programme to plant 200,000 mangrove and other suitable trees by 2030.

Chow acknowledged the environmental, social and legal challenges encountered throughout the project but said the state remained committed to its long-term economic potential.

With the experience centre now open, the state government hopes to attract more international partners and investors to explore opportunities on Silicon Island as reclamation and infrastructure development continue.

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The RM33 million Mount Erskine underpass project in Penang will be redesigned to incorporate a tunnel, avoiding the need to excavate a busy road and minimise traffic disruption during construction.

Deputy Housing and Local Government Minister Aiman Athirah Sabu said the original plan to excavate the road would have required major road closures, affecting motorists travelling along Mount Erskine, Jalan Gottlieb, Jalan Burma and Jalan Bagan Jermal.

“If we close the roads, there will be even more complaints,” she said during a Dewan Rakyat special chamber session in response to a question from Bukit Bendera MP Syerleena Abdul Rashid.

Aiman said the Penang Island City Council (MBPP), which oversees the project, had completed land acquisition and appointed consultants to prepare the design.

The project was initially announced with an estimated cost of RM25 million under last year’s federal budget. However, the Penang government subsequently sought RM33 million for the project during a meeting with Prime Minister Anwar Ibrahim in March last year.

The federal government initially approved RM5 million for preliminary works this year before granting the full RM33 million on June 9, following MBPP’s completion of the preliminary work ahead of schedule.

Aiman stressed that the project had not been delayed and remained in the technical preparation phase to ensure construction safety and quality.

The design is expected to be completed by December 2026, with the tender process scheduled to begin in February 2027 and close by the end of March. The contractor is expected to be appointed in June, with site possession scheduled for July 2027.

The proposed tunnel will measure approximately 780m long and 8m wide, with completion targeted for November 2030.