KUALA LUMPUR, April 16 — The Penang South Reclamation (PSR) project could generate over RM70 billion that would pay for an ambitious transport network and drive the state’s economy, said sources.
They told The Star that the bulk will go towards funding the RM46 billion Penang Transport Master Plan (PTMP) that includes projects like a light rail transit (LRT) line, the Pan Island Link 1 (PIL 1), and more.
The PSR is a land reclamation project to create three man-made islands covering 4,500 acres off the southern coast of Penang island.
The Penang government has touted it as a well-planned "smart city" that will include commercial and industrial development.
The report also stated that the reclamation process could be completed in six years, but others have said it may take up to 15 years, with the overall development of the island another 15 years beyond that.
A well-established developer also told The Star that the industrial plots on the island, depending whether it is free- or leasehold, could cost between RM70 and RM200 per square foot (psf).
“When the reclamation of the islands starts in 2020, there could be at a 10 per cent appreciation. The island will be sold via an open tender process,” he said.
Previously, sources also revealed that some 75 per cent of the project is for sale, with 30 per cent of enquiries made about the industrial land.
“There’s currently a slowdown in the manufacturing sector. When the reclamation is done, the global economy should also see a recovery,” said a local manufacturing company who express interest in the project.
The PSR is still pending regulatory approval.