Making room for Penang tourism

The Star

22-05-2025

(From left) Penang housing and environment state exco Datuk Seri Sundarajoo Somu, Zairil and Chief Minister Chow Kon Yeow having a discussion during the state assembly sitting. — LIM BENG TATT/The Star Aerial view of the Silicon Island Reclamation project site. — Filepic
THIRTEEN new hotels have opened in Penang since August 2023 to meet growing demands of the state's tourism industry, with seven more expected to begin operations soon.
Penang tourism and creative economy committee chairman Wong Hon Wai said the 13 hotels had contributed 2,311 rooms to the state's capacity for visitors' accommodation.
The new rooms comprise 1,670 at 11 hotels in the northeast district, 298 at a southwest district hotel and 343 at a hotel in north Seberang Perai.
An aerial view of the Silicon Island Reclamation project site.
Wong was responding to a question from Heng Lee Lee (PH-Berapit) on the increase in hotel developments, at the state assembly sitting in George Town.
Meanwhile, state infrastructure, transport and digital committee chairman Zairil Khir Johari said land reclamation of the 930ha Silicon Island, off Penang's southern coast, would take 10 to 15 years.
He said reclamation works, which had begun in September 2023, were being carried out in two phases.
Phase one involves the reclamation of 510ha while phase two covers 420ha.
'As of April 30 this year, 60ha of land, equivalent to 6.5% of the project, had been reclaimed,' he told the assembly.
In response to questions from Muhamad Kasim (PN-Telok Bahang), Zairil (PH-Tanjong Bungah) said no land acquisition was involved.
However, he said land acquisitions in Permatang Damar Laut would be needed for construction of phase one of the Pan Island Link 2A (PIL2A) highway connecting Batu Maung to Silicon Island.
'It involves 13 land lots, 17 residential houses, two business premises, one welfare home and one place of worship.
'The land acquisition process was approved by authorities on May 8 last year and gazetted on July 11 last year under Section 8 of Land Acquisition Act 1960,' he said.
Zairil disclosed that owners of the premises had received compensation based on valuations by the Valuation and Property Services Department.
'A majority of the stakeholders received compensation of over RM1.5mil for each lot of land.
'Three individuals received ex-gratia payments of RM43,500 each.
'The total compensation for land acquisition under PIL2A amounted to RM24,154,948.73, with ex-gratia payments totalling RM130,500,' he added.
Mohamad Kasim had asked about the land reclamation progress of Silicon Island, the number of residents involved in land or property acquisition and the compensation they received.
Silicon Island, previously known as Island A, is being developed by Silicon Island Development Sdn Bhd.
The developer also oversees the design and management of Phase 1 reclamation works via turnkey contractor SRS TC Sdn Bhd, a wholly-owned subsidiary of Gamuda Bhd.