Nothing to be ashamed of, says Chow on Penang's land strategy

New Straits Times

22-05-2025

GEORGE TOWN: The Penang government has firmly denied allegations that it is selling state land to address financial needs, clarifying that its land disposal practices are guided by national legislation and focused on strategic development.
In his winding-up speech at the state legislative assembly sitting this afternoon, Chief Minister Chow Kon Yeow said that technically, no land was sold.
Instead, he said, land disposal was carried out through legal mechanisms such as leasing, alienation, or other methods permitted under the National Land Code 1965.
"The term 'land sale' does not apply in the context of state land administration. Its aim is not merely to generate revenue but to promote socio-economic development and job creation in the local community.
"We do not have mines or a logging industry.
"Without these as streams of revenue, we have to rely on what we have, land and reclamation to create more land.
"What is there to be ashamed of about the state disposing of its land for revenue for the sake of development? Penang has always relied on this formula for the past five decades, so there is nothing to be ashamed of.
"If Penang had not used this formula to start the Free Industrial Zone in the past, it would not be what it is today," he said.
Chow said Penang could not always hope for handouts from the federal government, especially when the federal government was also facing its own financial challenges.
Land valuations are carried out based on current market rates provided by the Valuation and Property Services Department, and for strategic projects such as housing developments, the government employs a Request for Proposal (RFP) approach.
This enables the state to secure premium returns that may exceed current land valuations, while ensuring developments serve the public interest.
Chow said this method of land disposal does not diminish the state's land holdings.
"The land is not disposed of for the sake of profit, but used as a tool to catalyse development and improve the quality of life for residents," he said.
"Also, leaving land undeveloped will burden state finances with maintenance costs and deprive the public of vital infrastructure such as roads, parks, and community amenities.
"This is about using land responsibly to drive progress, not about selling off state assets," he said.
In his winding-up speech, Chow also said that in his seven years serving as the chief minister, it was fair to say that the state's water services and supply had become more sustainable, with many previously overlooked issues now resolved or in the process of resolution.
He said that long-term planning had been established through to 2030 to ensure a stable water supply throughout the state.
He said infrastructure projects, including road networks, flood mitigation plans and electricity supply, had also been implemented and were continually planned.
"These efforts are evident through the responses and wrap-ups shared by my team.
"Besides effectively utilising state financial resources, we have also succeeded in securing federal funds from time to time for the development of our beloved state.
"In terms of industry, we have proven that Seberang Prai is the future of Penang.
"Batu Kawan has undergone rapid transformation, and Seberang Prai Utara is also actively being developed.
"In fact, in terms of industrial land readiness, an area of 500 acres (202.3ha) has already been prepared to meet future investment needs.
"Based on these achievements and our commitment, I am confident that the Vision Penang2030 agenda will be successfully achieved and handed over to my successor.
"I dare say, and firmly believe, that when my successor eventually takes over the leadership of Penang, the state will be handed over in a strong and stable financial position, with over RM1 billion in the state's consolidated fund."