GEORGE TOWN, Nov 17 — The Pakatan Harapan Penang government is focusing on developing its mainland half to spur economic growth under its Budget 2017, Penang Chief Minister Lim Guan Eng said today.
The Penang lawmaker said it received additional allocations under a large loan of RM609 million to state investment arm, Penang Development Corporation (PDC).
"The loan is for PDC to acquire land and develop Seberang Perai because we believe the mainland is the next engine of growth for the state," he said in a press conference at the state legislative assembly building today.
He defended the state budget by insisting that it was a 'balanced' budget where allocations were equally distributed to both the mainland and the island.
Meanwhile, on the Pulau Jerejak issue, Lim stressed that the state government did not lose ownership of the whole island after PDC sold its 49 per cent stake in Tropical Island Resort Sdn Bhd (TIRSB) to Q Islands Development Sdn Bhd for RM156 million.
"We did not sell off the whole island, only the 80 acres that was earmarked for development," he said.
TIRSB was a joint venture company set up between PDC and UDA Holdings Berhad and it was awarded 80 acres of land on the island to be developed.
Lim admitted that TIRSB had conducted a Request for Proposal (RFP) in 2013 but that the decision to award the tender was made by UDA as UDA is the majority shareholder with 51 per cent stake in TIRSB.
He also reiterated that the current deal where PDC sold its stakes to Q Islands, a subsidiary of Ideal Properties, was also UDA Holding's decision.
"We have not approved any additional land on Pulau Jerejak for development and the permanent forest reserve on the island will be gazetted as a state park," he said.
Penang Gerakan has been questioning PDC's sale of its stakes in TIRSB to Ideal Properties and also the planned development for the island which included a bridge to connect it to Penang island, residential buildings and a theme park.
Earlier today, while debating the Supply Bill, state Opposition leader Datuk Jahara Hamid had questioned if the state has a hidden agenda for delaying the gazettement of a forest reserve on the small island.
She said the previous Barisan Nasional administration had only demarcated the 80 acres for eco-tourism and does not include any residential component or a bridge.
"At this rate, our island, our hills, our beaches…all will be destroyed, all will be plundered by such proposed developments," she said, also referring to proposed developments on Penang Hill and proposed reclamation projects in the state.
