Transport minister Loke Siew Fook says there must be some give and take between all parties involved in discussions on extending the land lease for MSM Malaysia Holdings Bhd’s sugar refinery in Perai.
Loke said his ministry, which owns the 7ha plot of land through Railway Assets Corporation (RAC), wants to hold talks with the Federal Land Development Authority (Felda) on its request to extend the lease for another 30 years.
He said his ministry will propose a 10-year extension to be given to MSM instead of 30, which was too long since a redevelopment project had been launched for the land.
He said this proposal will be brought to the Cabinet.
“We will offer a reasonable (lease extension). Plus, we need to understand that the land has been rezoned as it is no longer suitable to be used for industrial purposes.
“Both Felda and RAC are government agencies, so we will hold proper discussions with them to achieve a win-win outcome. However, there needs to be some give and take in this matter,” he said at a press conference at Penang Sentral here today.
In any case, he said, the refinery will not need to cease operations or relocate immediately.
Felda chairman Ahmad Shabery Cheek was reported to have said that the agency was seeking a 30-year lease extension on the land in Perai as it would allow MSM to make long-term plans for the sugar refinery, including a possible relocation of the facility.
The refinery was built in 1964.
On Nov 11 last year, the transport ministry announced that 177 households in Kampung Manis, Perai, would receive free affordable homes to be built on land they have been squatting on for five decades.
About 300 families at Kampung Manis, who are descendants of those who previously worked at the MSM factory, have been living on RAC land for over 50 years despite several eviction attempts in the past that drew media attention.
Penang LRT tender revision report not true
Loke denied a report by The Edge claiming that MRT Corp told bidders for the Mutiara LRT project in Penang to come up with alternative proposals with electric train sets that are smaller in size and with lower technological capabilities.
“It’s only an allegation. We have not even awarded any tender, we are still evaluating them,” he said.
He said the ministry was working on a rail siding extension project for the Penang Port, to place all wagons on tracks instead of on the roads outside the port.
The project will involve extending the existing siding track from 500m to 1.01km.
Loke said the current rail siding can only accommodate 30 to 50 wagons while the remaining wagons are placed outside the port vicinity, partially blocking roads and causing traffic congestion in the Butterworth area.
He said the proposal is for the project to be jointly financed by both the transport ministry and the port operator, Penang Port Sdn Bhd.
