Penang continues to lure investors to her shores

From her early day as a straits settlement Penang’s idyllic charm has drawn the interest of locals and foreigners. Penang’s successful embracing of development while retaining her heritage and traditions through the careful preservation of people’s way of life, pre-war architecture and historical sites is well appreciated.  Penang is one of Malaysia’s most developed and economically significant states. Its comprehensive infrastructure supports multinational corporations, educational institutions, medical centres, manufacturing hubs and a vibrant hospitality industry driven primarily by tourists from all over the world.

Residential and commercial property market continues to thrive

Despite the softening of the property market, Penang has managed to sustain a high level of activity in both the residential and commercial development sectors. Early this year Datuk Lee Kah Choon, Director at invest Penang, announced that Penang will see RM5 billion worth of investments coming into the state in 2015 from four multinational corporations (MNCs) involved in electronic-based manufacturing activities. A major infrastructural development is the state’s maiden LRT project, a 17.5km elevated stretch linking Komtar with the Penang International Airport. Construction of the project is to commence in 2016 and will see the initial implementation of the RM27 billion Penang Transport Master Plan (PTMP), which also includes a 25km expressway linking Bayan Lepas and Tanjung Bungah. The state government also recently confirmed reports that it would introduce trams as part of the PTMP within the Georgetown Heritage Zone which will only add to Penang’s charm and boost its tourism industry.

Property prices in Penang began showing a notable increase in the mid-2000s with areas on the Island, particularly Georgetown experiencing the greatest appreciation. This year a slight setback is being seen on the island with fewer residential property launches due to the growing shortage of land and a challenging property market environment. It is now Seberang Prai that is drawing the attention of developers. The recently opened 24-km second bridge connecting Batu Maung on the island and Batu Kawan in South of Seberang Prai has seen an increase in development on both ends of the bridge. Batu Kawan is the site for a premium retail outlet known as Penang Designer Village. The RM1 billion massive project will be headlined by a regional integrated shopping haven anchored by IKEA and include a mixed development of residences, offices, medical facilities, a 20-acre park, an international school, standalone retail outlets and an integrated central transportation hub for Seberang Perai.

Penang’s tourism industry has been a primary catalyst of its growth. Ten new hotels, which are currently under construction, are set to open for business by the end of 2015 to cater to its growing numbers of local and international tourists. In June, Hilton Worldwide announced that it will open the country’s first DoubleTree Resort in the Batu Ferringhi hospitality belt. One of the main attractions of the hotel will be the introduction of Malaysia’s first teddy bear themed museum and gallery — Teddyville — located within the building itself.

Mega projects in the pipeline

Another mega project that has come under much spotlight is the Penang’s Undersea Tunnel, a 6.5km tunnel linking Gurney Drive on the island and Bagan Ajam on the mainland. The proposed undersea tunnel which will be the third link between Penang and the mainland will not only reduce traffic congestion, but is expected to spur economic growth in Seberang Perai Utara. Although the project has drawn some criticism from the public, the state government is confident that it will be a game changer for northern Seberang Perai residents and the overall development of the island.

Butterworth is also a recipient of Khazanah Nasional’s Think City Grant which is a community based urban regeneration initiative. Recipients of the award  will carry out joint projects to improve living spaces and public amenities and work on a wide range of projects involving arts, heritage, culture, environment and economic resilience.   The core area designated for regeneration in Butterworth covers three linked roads – Jalan Bagan Luar, Jalan Jeti Lama and Jalan Telaga Air.

Conclusion

Despite the many economic opportunities accorded by market centres such as the capital city of Kuala Lumpur and the southern corridor of Iskandar, Penang with its golden beaches, rich cultural heritage, a multi-ethnic population and a thriving commercial landscape continues to present multiple opportunities for growth.

(This article was written on October 2015)

Reference: iProperty Focus

The reclamation cost for the Gurney Drive foreshore, which includes the 24.28ha Gurney Wharf “Park on the Sea’ project and Phase 2A of the Seri Tanjung Pinang Phase 2, is expected to cost RM1.07bil.

The reclamation cost would be borne by Eastern & Oriental Bhd (E&O) while the state government will finance the Gurney Wharf project, said Penang Chief Minister Lim Guan Eng.

“The reclamation cost does not include other ancillary cost for infrastructure, consultants and experts.

“The state will own the foreshore once the reclamation is completed and will begin work on the Gurney Wharf project,” he told a press conference yesterday.

On Tuesday, Lim announced the massive recreational waterfront project, which would include a seaside food and beverage area, water gardens, beach and coastal groves spanning some 1.5km of shoreline.

“Work on the project will only begin in 18 months after the reclamation is completed.

“The cost of engaging some of the world’s best architects to produce the Gurney Wharf concept masterplan will be borne by E&O.

“The time frame includes eight to 10 months for land reclamation plus another six to eight months for soil treatment and settlement,” he added.

Gurney Drive, Lim said, would remain open and be accessible to vehicular and pedestrian use, and will be beautified.

Lim added that measures have been taken to arrest the impact of a potential tsunami on the platform level of the reclaimed land.

The level of the platforms will be over 5.5m, higher than the 2004 tsunami that hit the shores of Gurney Drive at 4.2m.

“Gurney Wharf will be delivered in phases.

“It is hoped that the park area can be delivered by mid-2018.

“The second phase encompassing the seafront retail and food outlets is likely to be completed by 2020,” he said.

The public can give their feedback on the proposed Gurney Wharf concept masterplan via the feedback box at the exhibition area at Level Two, Komtar until tomorrow.

Lim said after the feedback exercise, the state will determine the other practical elements of the project, including how it would be financed.

* Read more about Gurney Wharf *

Source: TheStar.com.my

Gurney Wharf Masterplan

E&O begins Phase 1 reclamation for Gurney Drive project next month

Eastern and Oriental Bhd (E&O) expects to complete Phase 1 of the Gurney Drive reclamation and landscaping project called Gurney Wharf by mid-2018.

Measuring 60 acres, the cost of the project, which is several hundred millions of ringgit, will be borne by the Penang state government that intends to contra the payment in kind, said Chief Minister Lim Guan Eng.

“E&O will surrender the 131 acres of land to us for free. They will bear the cost of reclamation but we will need to pay for the landscaping activities, which could cost hundreds of million ringgit.

“We plan to pay in kind because we don’t have that much cash, perhaps through development plans (consideration). It is a sore point for E&O because they have to come up with the cost,” he told a press conference here today.

Lim said E&O prepared the proposed master plan concept, open for public feedback till Sunday, by engaging consultants GDP Architects Sdn Bhd for the overall plan, Grant Associates Singapore Pte Ltd for landscaping and Jerde Partnership Inc to design the retail food and beverage (F&B) segment.

The reclamation is part of the 131-acre land within RM1.04 billion Phase 2A of the Seri Tanjung Pinang 2 (STP2) project, which measures 760 acres.

Dredging works will start next month and are expected to take between eight and 10 months to reclaim the site, with another eight months for the soil to settle before landscaping work begins, E&O group corporate strategy director Lyn Chai said.

E&O, which took over the reclamation project from a previous concessionaire, completed 240-acre STP1 in 2006.

Following its approval to reclaim STP2 last year, E&O awarded the RM2.32 billion construction rights to Shanghai and Hong Kong-listed China Communications Construction Co Ltd (CCCC).

Penang State Local Government, Traffic Management and Flood Mitigation committee chairman Chow Kon Yeow said Gurney Wharf would adopt a people-centric approach where Penangites can enjoy the sea frontage.

It will feature a seaside retail F&B segment (Phase 2 of the project), water gardens, beach and coastal grove, he said, adding that the casuarina trees would be preserved.

The Gurney Wharf project would see the extension of the beach by an average of 80m, with an artificial beach of measuring 400m, along the 1.5km stretch of Gurney Drive, said Grant Associates architect Mike Wood. It will resemble San Francisco’s Fisherman’s Wharf or London’s Canary Wharf.

“It would also feature an eight-lane expressway on the reclaimed land. The assets such as the trees and promenade would be incorporated into the landscape development,” Wood added.

* Read more about Gurney Wharf *

Source: TheEdgeMarkets.com

Plans for new Gurney Wharf public space unveiled

Penangites were today given a preview of the new seafront public park planned for the Gurney Drive foreshore. Spanning close to 60 acres, this water-fronting public recreation area called Gurney Wharf is a Penang State Government initiative.

Building a better Butterworth

Four more areas in Butterworth will be restored under the New Butterworth Image Plan following the extension of the partnership between the Seberang Prai Municipal Council (MPSP) and Think City.

A Memorandum of Under-standing (MoU) was signed between both parties for a five-year partnership from this year till 2020.

Think City executive director Hamdan Abdul Majeed said the partnership was a continued effort to implement more programmes.

“Following a successful partnership in 2014 and last year, we will continue working together with MPSP to improve Pekan Lama, Sungai Prai, Penang Sentral and Butterworth Waterfront,” said Hamdan.

“This is an extension of our work in Penang, which started in George Town.

“We see potential growth in both George Town and Butterworth and this is in line with Think City’s intent to support the rejuvenation of heritage sites.

“In Butterworth, we will be supporting urban renewal works through public participation.

“We will also be assisting MPSP in providing technical expertise, bringing stakeholders together for engagement and working with them to secure crowd funding.

“The public places that have been identified include the Dewan Ria community facilities, Old Public Market, Jeti Lama historic quarters and Taman Pantai.

“The partnership will also look into realising potential land use, celebrating historic Butterworth and helping to make it a vibrant and liveable city.”

Hamdan was speaking after the signing of the MoU yesterday with MPSP president Datuk Maimunah Mohd Sharif, who represented the council.

The signing was witnessed by Chief Minister Lim Guan Eng.

Maimunah said the collaboration between Think City and MPSP last year saw the first ever international arts festival in Butterworth — the Butterworth Fringe Festival which attracted over 18,000 people.

“We also held the Urban XChange programme by Hin Art Gallery resulting in three new art installations in Butterworth.

“They are the Star by Jun, the caretaker of Pak Thai by Vhils and the 3D Mandala mural by Nafir.

“Six Seberang Prai Stories lecture series were also organised in a joint effort with the Penang Heritage Trust at various places in Butter-worth,” Maimunah said after the signing.

At a press conference later, Hamdan urged the public, including those with property and heritage buildings in the targeted vicinity, to apply for funds from Think City’s grant programme to help restore the old Butterworth town.

“The deadline for applications is the end of this month.

“We hope that by April, the funds will be ready,” he said.

He said interested applicants could log on to thinkcity.com.my to apply.

(This article was published on 09/01/2016)

Source: TheStar.com.my