RM160bn property development scheme in Penang

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The transport infrastructure proposals for Penang put forward by the Gamuda-led SRS Consortium is expected to cost a whopping RM40bn.

This is apart from the RM6bn for three highways and a tunnel in northern Penang Island under the Zenith consortium which is being funded by a 110-acre land for infrastructure swap deal.

This adds up to a staggering RM46bn for transport infrastructure.

Now, this is much higher than the RM27bn transport masterplan put forward by consultants Halcrow, which had proposed mainly bus rapid transit and trams, along with the highways-tunnel which the state government wanted them to include.

The state government plans to fund this massive RM40bn tab for the SRS proposals by selling reclaimed land. Three artificial islands are expected to be created off the southern coast of Penang Island, which will affect the fishing communities there.

Two islands are expected to be created in Phase One (2017 to 2023) and the third island will be created in Phase 2 (2022-2030). The sale of reclaimed land is expected to generate RM20bn-28bn in Phase 1 and RM20bn in Phase 2.

Though the SRS plan includes sale of Pesta land (in Phase 1) and 800 acres of reclaimed land in Middle Bank (Phase 2), it is not clear if these two will proceed.

Property development firms will be rubbing their hands in glee over the prospect of developing up to 4,500 acres of reclaimed land from the three islands. (For Phase 1 alone, the reclaimed land would be 3,700 acres.)

Under the proposals for Phase 1, industrial land is valued at RM170-200psf, residential land RM230-730psf and commercial land RM370-750psf.

READ MORE:  PTMP has failed! Go back to the drawing board

So how do we get a figure of RM160bn for the gross development value of the property development for both phases? Well, I am told land cost usually constitutes 25 per cent of gross development value. So if the total sales of reclaimed land amount to RM40bn, developers would stand to reap RM160bn in gross development value (or let’s be conservative and say RM100bn).

Whichever way you look at it, it would be a boon for developers.

This makes some people wonder if what is driving the expensive SRS transport proposals is a vision for sustainable mobility or a vision for even more (mostly high-end) property development in Penang.

In any case, a north-south highway on the island (under Phhase 1) is hardly a visionary proposal in this era of climate change and energy constraints. It is regressive – reflecting a 1970s mindset of highways as symbols of progress.

The initials SRS might give us a clue as to the driving force behind the expensive transport proposals. It stands for Southern Reclamation Scheme.

The way I see it, it is property development plans that are driving the expensive transport proposals.

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flyer168
flyer168
14 Aug 2016 12.30am

Maybe we can all learn something from LKY – 50 years of NDP: The parade through the years – https://dinmerican.wordpress.com/2016/08/13/singapore-50-years-the-national-day-parade-through-the-years-down-memory-lane/#comment-272582

tunglang
tunglang
19 Jul 2016 7.37am

Many in Hong Kong look for the exit door amid China tension http://www.thestar.com.my/news/world/2016/07/18/many-in-hong-kong-look-for-the-exit-door-amid-china-tension/ Some 42 percent of Hong Kong residents want to leave, a survey by independent think tank Civic Exchange showed in June. This compares with 20 percent wanting to leave neighbouring Singapore. Seventy percent of 1,500 people surveyed said Hong Kong had become “worse” or “much worse” to live in, with the biggest concerns housing, the “quality of government” and education. Note: The key issues are affordable housing, political stability & cari-makan which should not be economically & politically disrupted by foreign elements e.g. greedy foreign investors causing… Read more »

YGC
YGC
20 Jul 2016 2.05pm
Reply to  tunglang

Will these HK fellows make Penang their second home?
They can check up the properties at Gurney Plaza tomorrow.
Or they could check up Eco World – a supplement of the Star today for options!

Aisayman
Aisayman
26 Jul 2016 8.14pm
Reply to  YGC

The Star reported good sale at the property fair at Gurney Plaza. Or is it just a marketing gimmick?

Jolly Mike
Jolly Mike
2 Aug 2016 3.04pm
Reply to  YGC

If only blue ICs could be given to these Chinese immigrants…

tunglang
tunglang
19 Jul 2016 12.17am

Today, it rained hippos, water buffalos & walruses! Teluk Bahang & Batu Ferringhi areas were mercilessly flooded like never b4. Now, doesn’t these ring alarm bells? Just Google Earth & you will get what I mean. Of course, some will blame the Hai Leng Ong (Sea Dragon Emperor) for the unusual high tide. Why not also blame the gravitational pull of the Moon? (today is 15th day of 6th Month of Chinese calendar) In the coming days b4 the Hungry Ghost Month, be prepared for more torrential rainfall of tears from the howling of hungry ghosts waiting at the Gate… Read more »

XiaoBee
XiaoBee
16 Jul 2016 1.03pm

Anil,
Are you aware that a major MNC is to close its manufacturing plant in Penang by June 2017?
That MNC (from USA) has been in Penang Bayan Lepas for decades. Only last year it was announced that it would expand to Batu Kawan, but things have taken a big u turn.
Many workers including engineers will be out of job.

Andy
Andy
16 Jul 2016 4.49pm
Reply to  Anil Netto

What’s next to drive the economy of Penang, if manufacturing activities are moving out?
More consumption I.e. More shopping malls to spur public spending?
What about building casino or theme park to attract more tourists?

tunglang
tunglang
16 Jul 2016 10.23pm
Reply to  Anil Netto

Small businesses are the biggest employers in the US.
And many of these small businesses have R&D to spur their businesses to the next level of competitiveness. When you have more success stories of small businesses, people get inspired & motivated to work for success. And the spiral effect is contagious.
Many thanks to their US banks, angel investors & venture capitalists that DARE to take more risks to support small businesses.
In Malaysia, I doubt.

David Loman
David Loman
19 Jul 2016 3.18pm
Reply to  Anil Netto

UniKL is turning to Old Testament reference to launch project Genesis to produce 1000 entrepreneurs.

http://www.bernama.com/bernama/v8/ge/newsgeneral.php?id=1264129

According to Ismail Sabri (of MARA Digital fame), Mara has produced approximately one million entrepreneurs since its inception on March 1, 1966 – not sure how many of these fellows get free rental.

It was reported in February this year that there were about 200,000 unemployed graduates in the country.

zoro
zoro
16 Jul 2016 11.56pm
Reply to  Anil Netto

Who has money? Sen is not enough. I have to talk dollars. How about Penang lang Jhow Low,

Thana
Thana
16 Jul 2016 5.47pm
Reply to  XiaoBee

Our manucturing sector is too heavily dependent on cheap foreign labour.
The minimum wage is dealing a big blow when no effort in productivity is promoted all this while.
So Penang will have to look for higher value added industry. But hard to find good talent when they could earn better wages in Singapore.

tunglang
tunglang
17 Jul 2016 10.05pm
Reply to  Thana

The answer is to help & motivate SMEs & small businesses to grow & expand globally. The gomen & financial institutions & investors should make some effort & not being too kia su to take risks. Licensing authorities should make applications open to all instead of selective approval & limited. But still the young talents both in tertiary institutions & home garages (remember Steve Jobs?) are the ones to be groomed & supported to be our next industrial leaders & innovators. Forget about the idiotic race game cards but start practicing true meritocracy. The best practices of entrepreneurship are in… Read more »

XiaoBee
XiaoBee
2 Aug 2016 12.45pm
Reply to  tunglang

investPenang director Datuk Lee Kah Choon pointed out the changes in the industry and how trends of the immediate future will be heading towards handphones and phasing out desktop computers and laptops. “Now we are into Global Business Services (GBS). Many of the electronics and electrical manufacturing activities in Penang have transformed over the 45 years. For example, Dell Penang’s activity has changed from desktop PC manufacturing to GBS and high-end server production. Meanwhile, Intel Penang has been moving away from low-cost manufacturing to high-end R&D and D&D in tablets and smartphones,” Lee said. Aware of the rapid transformation with… Read more »

Billy
Billy
21 Jul 2016 11.33am
Reply to  Thana

Nobody to blame but Seagate actually, they produced HDD Drive since decade ago and didn’t move on with current technology. It’s very rare to see Seagate SSD Drive but you can only find Hybrid Drive from them which is not very efficient. The case is very similar to Nokia or Eastman Kodak, though Seagate is quite intriguing one considering them to be one of the biggest in Digital Storage nowadays.

Shirly
Shirly
17 Jul 2016 1.55pm
Reply to  XiaoBee

What company you are referring to?

tunglang
tunglang
15 Jul 2016 11.14pm

Think carefully if you wanna emulate Hong Kong.
See: Protests, cocoons and shoebox homes: A look beyond Hong Kong’s postcard exterior
http://edition.cnn.com/2016/07/14/arts/hong-kong-contemporary-photography/index.html
Siang Kang – not as siang as it looks.

Bigjoe
Bigjoe
14 Jul 2016 2.35am

Just recently flew low over Southern Johor and Singapore. Singapore has reclaimed and continue to reclaim massive land area. BUT it’s the sea in Southern Johor that is all yellow. Even Tekong where the biggest on going project has been taking place for years look like a resort covered mostly in trees.

There is a right way to do hard choices and wrong way to do hard choices. The answer is never not to make hard choices. You always have hard choices. The issue is who do you trust to make those hard choices?

tunglang
tunglang
15 Jul 2016 8.48am
Reply to  Bigjoe

Choices from the people, by the people, for the people. Not by anybody in the state executive.
Why make it (choice) harder???

zoro
zoro
15 Jul 2016 9.40pm
Reply to  Bigjoe

the same princple applies to housing? few hundreds or thousands have the same mind the developer built.

zoro
zoro
16 Jul 2016 11.50pm
Reply to  zoro

Of course you speak sen and I talk no sen. I must have talking in dollars. How nice to have beautiful highways in my neighbour’s backyard and can have speedy gonzalo to SP, Maxwell hill and belum but no highway to Far lim for a cuppa of kopi kau kau? If not safe to return to civilisation, why bother to return? Keep staying there. Why Yankee Tarzan only? Malaysia boleh to have own Tarzan.

tunglang
tunglang
17 Jul 2016 9.38pm
Reply to  zoro

Wanna take the challenge???
Or kay bo phiao?

tunglang
tunglang
17 Jul 2016 9.45pm
Reply to  zoro

xx#xyz*yayeeyowx#zzzzzzzzz. Yawn!!!

zoro
zoro
16 Jul 2016 12.18am
Reply to  Bigjoe

Bigjoe, now no more Singland. It is Hongland.. welcome Taiping and goodbye Farlim

tunglang
tunglang
16 Jul 2016 8.23am
Reply to  zoro

You talk so much nonsense in anilnetto.com, why not try talking to the Bunians in Belum rainforest.
I gladly give you a free ride there but on one condition:
I am not responsible for your safe return to civilisation.
Be prepared for … one ketua bunian.
Want to take the challenge???

XiaoBee
XiaoBee
16 Jul 2016 12.53pm
Reply to  Bigjoe

There is no “Johor Forum” in Johor to criticise the Johor island reclamation projects near the causeway and Forest City? Is it because the Johor royalty is involved in such projects?

james k
james k
12 Jul 2016 9.44pm

Have you viewed all the PTMP documents through the council? Are these information from them?

I think the middle bank plan has been shelved (rmb CKY mentioning in some interview), not sure bout Pesta sale though

tunglang
tunglang
15 Jul 2016 8.46am
Reply to  Anil Netto

Ala Sentosa Dream is still brewing in Komtar Tower of Arrogance.
Pulau Jerejak will never escape from the itchy paws of development for the sake of development (for more money). Should make this island haram against any kind of development esp casino type.
Until the last inch of Penang Island, including small peripheral islands like Pulau Jerejak, Pulau Kendi & Pulau Rimau are covered in cement & plastics or gentrified, the madness for mindless development will continue.

Kabali Penang
Kabali Penang
12 Jul 2016 2.42pm

Lim can advise us which homes to buy at SP (Sungai Petani or Seberang Prai) now that Penang island is too congested with transport vehicles and concrete creations ???

lim
12 Jul 2016 9.42pm
Reply to  Kabali Penang

Kabali Penang, i really have no idea la as i always say there is no peace on earth. I have friends stay in Taman Intan, that is an old housing estate in SP. But i can tell you a decent single storey terrace house only costs one hundred over thousand. I heard the affordable housing by Ideal at tg tokong near tesco was selling like hot cake, maybe due to its location. Honestly, i think penang is still THE place be it a small pigeon home. The only thing is penangnites really have to safeguard this precious island from falling… Read more »

Jive
Jive
13 Jul 2016 10.47am
Reply to  lim

Lim you have do public service with your reply.

Single storey landed homes aplenty in Sungai Petani. If you love chendol, you should try ice milo chocolate shake unique in SP near the bus terminal.

May be Tunglang should give it a try to promote SP as potential food paradise besides an affordable place to live and enjoy.

tunglang
tunglang
15 Jul 2016 8.32am
Reply to  Jive

So you are agent of Gentrification of Entire Penang Island For The Rich & Famous?
And believer of Social Engineering (of the poor & going to be poor) of Penangites?
What a sordid life of chasing materialism.
Be careful of Karma.

tunglang
tunglang
15 Jul 2016 8.37am
Reply to  Jive

I have been to SP before (for work projects) but I always bypassed it’s food for Taiping & Ipoh on my way to Belum rainforest.
Any comfy, affordable & quiet place nearer to civilisation is foot of Maxwell Hill, which is nearer to Taiping & Ipoh.

zoro
zoro
15 Jul 2016 9.56pm
Reply to  lim

lim, lucky no complains about beautiful highway and roads to taiping, sp and belum. so easy and fast to go such places but poor villages and animals. they are divided by those roads and no ah gee and ah jo

tunglang
tunglang
17 Jul 2016 9.46pm
Reply to  zoro

… Those old trunk roads already existed even before Merdeka.
Go refer to your … map!

David Loman
David Loman
13 Jul 2016 12.13pm
Reply to  Kabali Penang

Astana Parkhomes (Fasa Baru) @ Sungai Petani:

Tiara (Teres 2 Tingkat)
Luas Tanah: 22′ x 75′
Luas Binaan: 1,936 sq. ft.
Harga Bermula: RM 338k

Tamayra (Teres 2.5 Tingkat)
Luas Tanah: 22′ x 75′
Luas Binaan: 2,332 sq. ft.
Harga Bermula: RM 358k

http://newpropertylist.my/kedah/astana-parkhomes-in-sungai-petani

zoro
zoro
15 Jul 2016 9.45pm
Reply to  David Loman

why developer still built houses over 300k in small town? where are those affordable houses? follow pg gangnam style?

Andy
Andy
16 Jul 2016 4.52pm
Reply to  zoro

Because Penangites can retire comfortably in Sungai Petani. So RM300k is relatively cheaper and affordable for Penang islanders.

zoro
zoro
18 Jul 2016 11.49pm
Reply to  Andy

andy, please go and tell tun lang why buying more than 300k retirement house in SP? So someone feels more expensive than penang houses. orso those gen y in penang has to be taught … as many left for singland….

zoro
zoro
19 Jul 2016 11.23pm
Reply to  Andy

anil, if you allow tunglang to say donkeys can teach gen y why i was discriminated from saying gen y can be taught by donkeys? where is the river of justice?

zoro
zoro
17 Jul 2016 5.55pm
Reply to  zoro

Very good point. See Penang forum members. Many are in retirement or close to retirement. They should let gen y to decide. Don’t follow dr m’s Gangnam style champor tangan. Live in SP and decide what is best. Developers can focus on retirement houses.

tunglang
tunglang
17 Jul 2016 9.48pm
Reply to  zoro

Donkeys can teach gen y lah!!!

tunglang
tunglang
17 Jul 2016 9.54pm
Reply to  zoro

Anil. What’s so exiting about SP?
Staying 7 days a week dreaming about Pg lifestyle is not exactly having a life.
Unless one has nothing to do, no work / no career & no business in Penang.
Just day dreaming.

glissantia
glissantia
12 Jul 2016 2.14pm

So rising sea level and and violent storms are banished by concensus. We have read of a king who commanded the tide to respect him and stay away. In Florida, they are still building and “developing”, though more of the coast is crumbling, and more sewers and basements are being flooded. Capitalism is based on the principle of the greater fool, as Karl Marx said. It is the ethos of all conmen.

tunglang
tunglang
15 Jul 2016 8.39am
Reply to  glissantia

Let them learn lessons the hard & miserable way.
Past humanity lesson: The Ark of Noah.

Andy
Andy
16 Jul 2016 4.53pm
Reply to  glissantia

Rising sea level? Does that mean better live on higher ground?
So it can justify hill top development?

Morris
Morris
17 Jul 2016 5.32am
Reply to  Andy

Cheeky statement indeed by Andy!

Fact: If the Greenland Ice Sheet melted, scientists estimate that sea level would rise about 6 meters (20 feet). If the Antarctic Ice Sheet melted, sea level would rise by about 60 meters (200 feet).

So better plan to build houses above 60 meters from the current sea level???

tunglang
tunglang
17 Jul 2016 9.43pm
Reply to  Morris

If sea level goes up even by 15ft-20ft (about 5-6 meters), the whole of mainland Penang which is very much flat land will be inundated.
At least areas in Penang island above 20ft will be safe. Stay in Farlim & Bukit Jambul.