The Malaysian Insight

CRITICS have hit out at Gamuda Bhd for suggesting that the Penang South Reclamation (PSR) project can be the island’s own version of Singapore’s famed Marina Bay, saying regular folk won’t be able to live there.

They said Marina Bay is home to luxury developments like the iconic Marina Bay Sands hotel and questioned if the proposed development in Penang is targeted at locals or foreigners.

PSR involves reclaiming three man-made islands off the southern coast of Penang Island. It is also the finance model for another ambitious project – the Penang Transport Master Plan (PTMP).

The PSR project is undertaken by SRS Consortium, which is led by Gamuda, one of Malaysia’s biggest infrastructure companies. SRS is also the delivery partner of PTMP, seeing to several of its road and rail components.

At the Penang international business and investment summit yesterday Gamuda Bhd deputy group managing director Rashdan Yusof said PSR would “be a fantastic economic hub” – the prime location for economic activities, culture, IoT- (Internet of Things) related manufacturing.

Khoo Salma Nasution, a member of Penang Forum’s steering committee, however, is sceptical about PSR’s affordability if Marina Bay is the benchmark.

“How many per cent of the housing on PSR will be affordable? We saw a proposal stating 6%,” she told The Malaysian Insight.

Khoo said she heard from a developer’s representative that most of the property could be unaffordable to locals because the aim is to sell the units to foreigners. 

“It makes PSR sound like another Forest City,” she said, referring to the project in Johor, which is also on reclaimed land.

Marina Bay was reclaimed for high-end users, with a one-bedroom apartment at Marina One Residences going for S$1.7 million (RM5.2 million), she said.

“The average Singapore family don’t live there. The residences are sold to absentee owners, who reside overseas. Such properties don’t add value to the lives of ordinary Singaporeans. 

“The prestige of Marina Bay derives partly from its proximity to the financial sector, where commercial offices are for financial, wealth management, private banking and wholesale firms. Unfortunately, I doubt financial companies want to position themselves at PSR.”

Khoo said it is wrong to liken Penang with Singapore because the republic has proper planning and faces a shortage of land as a country.

“Much of Singapore’s land is on leasehold. Penang has Seberang Prai, which needs development,” she said, referring to the mainland with ample land for projects.

Penang still lacked a local plan for anyone to talk about comprehensive planning for PSR, she said.

“Before plans are made for some 300,000 projected phantom inhabitants at PSR, there must be comprehensive planning for the people of Penang first,” she said, adding that Penang was already “over-stretching” with the just reclaimed 307ha Seri Tanjung Pinang 2 and 45ha Gurney Wharf.

Projects on the two reclaimed sites are not completed and once ready, there might be a glut of high-end properties, she said.

Khoo also said fishing grounds for local fishermen would be affected, impacting future food security.

Sahabat Alam Malaysia researcher S. Mageswari echoed Khoo’s views, panning the state government and developers for willing to trade off marine resources.

“How affordable is affordable in Penang? Most people can’t afford them. There is already a property overhang in Penang.”

Last week, SAM president S.M. Mohamed Idris said the PSR project is unnecessary when Penang does not need more land to build homes that cannot sell.

Penang’s Marina Bay

Yesterday, Rashdan said there are many who prefer Penang island to the mainland, so the island “needs more land”.

“Singapore recognised this. Penang recognises this, so it is reclaiming the PSR.

“The first island will be for industry like the E&E (electrical and electronic) sector, new industrial parks that are close to the airport. The second will be for high-end services that serve the E&E sector and new tourism.

“Singapore’s reclaimed land allowed them to bring in new tourism projects. Genting built theme parks that are very successful there with visitors from all over the world.

“We hope Penang can emulate this and be more successful (than Singapore). Our food is nicer,” he added.

Stressing the importance of the project, Rashdan cited how reclamation had worked for Singapore like Marina Bay and Dubai, the UAE.

Marina Bay in a 360ha extension to the central business district. It is Singapore’s new downtown on reclaimed land. 

Dubai’s appearance has been changed by its man-made archipelagos – Palm Jumeirah, Deira Islands, Palm Jebel Ali, The World, and Bluewaters Island – that are in various stages of completion.

Palm Jemeirah is the most recognised and houses many luxury hotels and resorts.

“PSR can be Penang’s Marina Bay… if Singapore has Universal Studios (on its reclaimed land), maybe Penang can bring in Disneyland… I don’t know,” Rashdan said.

Smart and non-elitist

But he stressed that the future developments on PSR would offer affordable homes.

“PSR will be the key area for affordability – not elitist – to include all Penangites and global citizens as a whole. It will truly be a fantastic economic hub. That’s the plan for PSR.”

Rashdan also said the state wants a smart city on PSR, where technology enhances the lives of people.

Rashdan also spoke of mobility pods complementing the LRT (light rail transit) system to address the last mile connectivity and to transport people, reducing the need to own cars. – February 27, 2019.