20-05-2025
- Business
- New Straits Times
Penang's Silicon Island takes shape: 60ha reclaimed so far
GEORGE TOWN: Reclamation works for the Penang Silicon Island project are progressing smoothly, with some 60ha reclaimed as of last month, since work commenced in September 2023.
State Infrastructure Committee chairman Zairil Khir Johari (DAP – Tanjung Bunga) said the reclaimed area accounted for around 6.5 per cent of the total 920ha designated for Silicon Island.
"The reclamation works are divided into two phases. Phase 1 covers the reclamation of 504ha, while Phase 2 will comprise the remaining 416ha.
"The overall reclamation process is expected to take between 10 and 15 years to complete," he said in response to a question from Muhamad Kasim (Bersatu – Teluk Bahang), who had enquired about the project.
Elaborating further, Zairil clarified that the Silicon Island reclamation project did not involve any land acquisition, as the works are being carried out in a marine area.
"However, the construction of Phase 1 of the Pan Island Link 2A (PIL2A) Highway Project, which connects Batu Maung to Silicon Island, does necessitate land acquisition in the Permatang Damar Laut area.
"This affects 13 land lots, 17 residential properties, two business premises, one welfare home, and one place of worship.
"The land acquisition was approved by the state authority on May 8, 2024 and gazetted on July 11, 2024 under Section 8 of the Land Acquisition Act 1960," he added.
Zairil said that all landowners and interested parties relating to the affected land, buildings, and structures had received appropriate compensation, following a comprehensive assessment conducted by the Valuation and Property Services Department (JPPH), as well as an inquiry held by the District Land Administrator in December last year.
He said that the majority of stakeholders received compensation exceeding RM1.5 million per land lot, while three individuals were granted ex-gratia payments of RM43,500 each.
"The total compensation paid for the PIL2A project amounts to RM24,154,948.73, with an additional RM130,500.00 disbursed as ex-gratia payments," he said.
In April last year, Zairil said that the reclamation work was projected to reach 160ha by the end of this year.
During a visit to Penang in May 2023, Prime Minister Datuk Seri Anwar Ibrahim said that the federal government would allocate additional funding to help expedite the state's proposed Mutiara Line light rail transit (LRT) project. At the time, he also requested that the state government scale down the scope of the reclamation project.
The Penang Silicon Island initiative is projected to generate a Gross Domestic Product (GDP) impact of RM1.1 trillion, attract total investments amounting to RM74.7 billion, and create some 220,000 job opportunities.
