Penang stands to benefit from several initiatives announced under Budget 2027, particularly in industrial investment, water security and housing affordability.

Key announcements relevant to Penang include:

• Stamp duty exemptions for first-time homebuyers: Eligible buyers purchasing their first homes priced up to RM500,000 will receive full stamp duty exemptions on loan agreements and property transfer instruments. For homes priced above RM500,000 up to RM750,000, the first RM500,000 will be fully exempt, while the remaining amount will receive a 50% exemption. The exemptions apply to sale and purchase agreements signed between January 1, 2027, and December 31, 2030.
• RM20 billion in housing financing guarantees: Syarikat Jaminan Kredit Perumahan (SJKP) will provide financing guarantees to assist 80,000 first-time homebuyers, particularly self-employed individuals without fixed incomes. This could improve access to housing loans for eligible Penang residents.
• Stamp duty exemptions for abandoned housing projects: Full stamp duty exemptions will be granted to eligible rescue developers and original purchasers involved in abandoned housing projects from 2027 to 2030.
• RM100 million strategic investment fund: Khazanah Nasional Bhd and InvestPenang will establish a fund to support early-stage semiconductor and advanced manufacturing companies. This could strengthen Penang’s position as a major E&E hub, attract investments and create skilled jobs.
• 40-year water supply agreement with Perak: The long-term bulk water supply deal could help strengthen Penang’s water security, supporting future industrial expansion and population growth.

Construction of Grace Harmony, a 754-unit affordable housing project in Penang, has progressed to the podium level, although financing constraints faced by the developer remain an issue that needs to be resolved for construction to continue smoothly.

Penang State Executive Councillor for Housing and Environment Dato’ Seri Sundarajoo said this in a Facebook post following a meeting with purchasers of the Grace Harmony project, led by the Penang Muslim League (Liga Muslim Pulau Pinang).

Developed by Nova Land Development Sdn. Bhd., the project comprises 310 units of Rumah MutiaraKu B and 444 units of Rumah MutiaraKu C. According to Sundarajoo, piling works had been fully completed during his previous site visit, while construction has since progressed to the podium level, including the car park structure.

However, he said the physical progress needs to be supported by resolving outstanding issues so that subsequent construction works can proceed.

The Penang Housing Board (LPNPP) is also involved in coordinating and monitoring the project. A revised construction schedule is being used as a reference during meetings with the developer every three months to assess actual progress against the planned timeline and identify matters requiring attention.

One of the key issues discussed was the developer’s financing constraints. Sundarajoo said the developer had informed the authorities that it requires at least two to three months to arrange financing with its bank. The matter has been raised during discussions and requires further follow-up to facilitate the continuation of the project.

To improve communication with purchasers, Sundarajoo also proposed the establishment of a pro-tem purchasers’ committee. Representatives would be able to participate in site visits and follow the project’s progress more closely, while providing a more structured channel for purchasers to raise questions and feedback.

Sundarajoo acknowledged the concerns of purchasers who are waiting for their homes and urged patience while the outstanding matters are being addressed.

He also stressed that the developer needs to focus on resolving the financing issue, implementing the revised construction schedule and providing purchasers with regular updates.

Sundarajoo said he would continue monitoring the project, with the aim of ensuring construction does not come to a halt and safeguarding the interests of purchasers.

He expressed hope that the outstanding matters can be resolved and construction of Grace Harmony can continue through to completion and eventual handover to purchasers.

The 36-storey Holiday Inn & Suites Penang Prai in Juru Sentral, Seberang Perai, is reportedly up for sale less than two years after opening, according to a report by The Edge.

Industry observers told The Edge that the freehold hotel has been on the owner’s radar for a potential sale since late 2025, with an asking price understood to be between RM220 million and RM230 million. At the upper end of the asking range, the property would be valued at about RM693,000 per room based on its 332-room inventory.

Located within the integrated Juru Sentral development, the hotel opened in early 2025 and is managed by InterContinental Hotels Group (IHG) under the Holiday Inn brand. The development also comprises a condominium tower, studio suites and retail units, while the same owner-developer holds the adjacent Citadines Prai Penang.

The hotel was first announced in 2016, when IHG signed a management agreement with Exopuri Development Sdn Bhd. It was originally planned as a 288-room hotel with an estimated development cost of RM117 million and targeted for completion in 2019. The completed property eventually opened with 332 rooms.

According to an industry observer quoted by The Edge, the hotel’s average occupancy is currently slightly above 50%. While this is not considered unusual for a relatively new hotel still building its customer base, the property’s location highlights the different demand dynamics between mainland and island hotels in Penang.

Situated within the Juru industrial corridor, the hotel primarily caters to corporate travellers, contractors and professionals working with manufacturing companies and multinational corporations in the surrounding area. This creates stronger weekday demand, while leisure demand and occupancy tend to soften during weekends.

The hotel is approximately a 30-minute drive from Penang International Airport.

Source: Google Street View

Motorists using the Tun Dr Lim Chong Eu Expressway will face temporary lane closures from 12 October 2026 to 28 February 2027 as construction progresses on a new elevated U-turn.

The works are being carried out by IJM Land Berhad, the master developer of The Light Waterfront Penang. The latest phase follows the completion of the initial works for the elevated U-turn in early September.

During the construction period, the median-side rightmost lanes on both the George Town-bound and Bayan Lepas-bound carriageways will be temporarily closed. Traffic diversions will be implemented to provide a safe working area for the next phase of construction.

Motorists are advised to plan their journeys ahead, follow the directional signage and exercise caution when approaching the affected sections of the expressway.

Once completed, the elevated U-turn is expected to complement the Air Itam Bypass, helping to improve traffic connectivity and traffic flow along the Tun Dr Lim Chong Eu Expressway.

IJM Land said further updates will be provided as construction progresses and thanked motorists and the public for their patience and understanding during the works.

Source: Buletin Mutiara

Seven of Penang’s 10 priority projects have been accepted by the Federal Government for consideration ahead of Budget 2027, according to Chief Minister Chow Kon Yeow.

Chow said the seven proposals are now being considered by the relevant ministries. Some may be announced when Budget 2027 is tabled, while others could be communicated to the state government at a later stage.

The seven projects accepted for consideration are:

• Penang groundwater resource mapping and assessment – A proposal to map and assess groundwater resources across the state.
• Penang STEM Talent Blueprint – An initiative aimed at strengthening the state’s science, technology, engineering and mathematics (STEM) talent pipeline.
• Public market complex in Teluk Kumbar – The proposed construction of a new public market complex serving the Teluk Kumbar area.
• Upgrading of mechanical and electrical infrastructure for flood control systems – Improvements to mechanical and electrical components supporting flood control systems, including those in Penang.
• Upgrading of Jalan Bukit Tambun (FT149) – The proposed upgrade of the federal road from the Federal Route FT001 junction to the Bukit Tambun Selatan Toll junction.
• Upgrading of Federal Route FT001 – Improvements to the stretch of FT001 between Permatang Tinggi and Sungai Juru.
• Sungai Kilang Ubi flood mitigation plan – A flood mitigation project proposed for the central Seberang Perai district.

Chow said the state government understood the Federal Government’s financial constraints but would continue to raise projects considered important to Penang.

“All these projects are important to us, but we understand the federal government’s financial position,” he said, adding that priority would likely be given to projects considered necessary to be implemented urgently.

The three projects that were not accepted for consideration could still be raised by the state government, Chow said.

Meanwhile, Chow also expressed hope that Budget 2027 would provide an update on the proposed Penang Technology Financial Centre (PTFC), formerly known as the Penang International Financial Centre (PIFC).

The proposal was renamed following discussions to better reflect Penang’s role as a technology and semiconductor hub. The state government’s PIFC task force submitted a white paper to the Ministry of Finance in September.

The proposed PTFC aims to improve access to capital for small and medium enterprises and local companies, particularly those supporting the semiconductor and artificial intelligence sectors.

Chow said the initiative would help local startups and SMEs scale up and grow alongside the multinational companies driving Penang’s semiconductor and AI sectors.