BUTTERWORTH: The Transport Ministry will bring to Cabinet the request from MSM Malaysia Holdings Bhd (MSM) to extend the land lease for its sugar factory in Seberang Prai, following the planned redevelopment of Kampung Manis in the area.
Its minister Anthony Loke said the factory has not been ordered to relocate and is still allowed to operate on land owned by the Railway Assets Corporation (RAC).
Loke added that the sugar factory’s land lease had expired on Nov 30 last year but it has been given additional time to continue operations.
“The factory will not be asked to move immediately. There is time. We will give them time because the Kampung Manis redevelopment will be carried out in phases, allowing the refinery time to relocate elsewhere.
“So, there is no question that the factory will be shut down immediately. It will take at least 10 years to relocate, and we hope they will cooperate.
“If they refuse to move permanently, the area cannot be developed. At the same time, I will bring the matter to the Cabinet to decide whether this extension will be granted or not,” he said after attending the opening ceremony of the Seberang Jaya Perkeso dialysis centre here today.
The centre was launched by by Human Resources Minister Steven Sim.
Loke said this when he was asked to comment on the negotiations by the Federal Land Development Authority (Felda), which requested that the Penang government and RAC consider extending the land lease for MSM for up to another 30 years.
It was reported that Felda chairman Datuk Seri Ahmad Shabery Cheek had said the factory’s strategic location near the port and railway has been crucial to the national sugar industry since 1964.
Shabery had also said that any move to close the factory would not only have a major impact on the country’s sugar supply but would also involve high redevelopment costs.
Loke expressed hope for the cooperation from the factory in relocating operations to another site, allowing the Kampung Manis redevelopment plan to proceed.
“The factory is located in Kampung Manis, which I have visited several times whenever I come to Penang. I also announced our plans to redevelop Kampung Manis.
“This is part of our effort to help the squatters in the area, many of whom currently live in a rather dilapidated environment.
“We have a redevelopment plan for Kampung Manis in collaboration with the private sector.
“We have already initiated a Request for Proposal (RFP) with a company to implement it, aiming to provide free housing for the original residents in the area,” he said.
It was reported yesterday that Penang Chief Minister Chow Kon Yeow had confirmed that the state government’s role in facilitating discussions between Felda and RAC regarding the lease extension for the MSM.
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