GEORGE TOWN, Sept 19 — The Penang government is ready to act as a facilitator over the land lease extension for the MSM Malaysia Holdings Bhd (MSM Prai) sugar refinery in Perai, near here that currently operates on leased land owned by Railway Assets Corporation (RAC).
Penang Chief Minister Chow Kon Yeow said that although the land was not owned by the state but RAC, the lease that is expected to end in several years was subject to the state government’s consideration, and that any decision regarding the extension depended on the state government’s consideration, based on further discussions between MSM Prai and RAC.
‘‘The land is owned by RAC, it isn’t state government land, so negotiations must be done directly between MSM and RAC as they are the stakeholders.
‘The state government is ready to be a facilitator as we also want to see the housing development planned by RAC realised,” he said at a media conference at Komtar here today, adding that the housing project, which would rehome squatters, including those in Kampung Manis, was vital as it involved squatters.
‘We know the situation in Kampung Manis which is like an urban slum and the housing project needs to be carried out to offer a better life to those involved,” he said, pointing out that MSM Prai has a factory in Johor capable of taking over operations if the Perai factory stopped operations.
Chow also stressed that the state government would monitor developments and that they wanted the affordable housing project to be carried out smoothly and that the issue between MSM Prai and RAC be resolved through proper negotiations.
“This needs to be discussed at the level of the Federal Land Development Authority (Felda) and RAC, both are government-linked companies, so we are convinced a solution can be reached amicably, the state government will play the role of a facilitator,” he added. — Bernama
