SEBERANG PERAI, July 3 — The Penang state government may consider renegotiating the terms and scale of the reclamation project off Karpal Singh Drive, said Chief Minister Chow Kon Yeow.
He said the proposal under the Jelutong landfill rehabilitation and reclamation project could still be reviewed.
“We will need to scrutinise the work method that the group was worried about,” he said, referring to the Protect Karpal Singh Drive Action Committee that recently met with him to voice concerns over the project.
Chow said the group, consisting mostly of Karpal Singh Drive residents, was especially concerned about the project’s work methods.
“We have to revisit why such a big area is needed and all that,” he said after attending the groundbreaking ceremony of a market complex in Batu Kawan.
He said the state may consider scaling down the project by renegotiating with the developer — if the Environmental Impact Assessment (EIA) report is approved.
“There are components, lands, that need to be handed over to the state,” he said.
He added that it involves a profit-sharing component, so the state may have to sacrifice its portion if the project is to be scaled down.
However, he stressed that this would not affect the contract signed with the developer.
In 2020, the Penang Development Corporation signed a deal with PLB Engineering Bhd to rehabilitate and develop the Jelutong landfill at a cost of RM1 billion. The project includes reclaiming 30 hectares of land off Karpal Singh Drive.
The Protect Karpal Singh Drive Action Committee has raised concerns over the project, citing environmental and pollution issues. They also warned that it could affect the nearby Middle Bank marine sanctuary.
The Middle Bank marine sanctuary spans around 10 square kilometres in the South Channel waters between Penang island and the mainland.
It is home to the only seagrass bed in the Straits of Malacca. A study found a total of 429 species of seagrass, trees, vegetation, fish, birds, marine mammals, turtles, molluscs, arthropods, and echinoderms there.
Chow said the final decision on the project will depend on the EIA report’s approval.
He said the project cannot proceed without it.
“The public display of the EIA ended on June 30, so it is up to the project developer to gather feedback and respond accordingly,” he said.
The next step, he said, is to wait for a decision from the Department of Environment (DoE).
“Whatever it is, we have to wait, and if they don’t receive EIA approval by the deadline, the project might not proceed,” he said.
Chow said the developer has until February 2026 to obtain the EIA approval.
“Now, they still have time, so if they didn’t get approval, they may need to resubmit,” he said.
If the developer secures EIA approval before the February 2026 deadline, the state government will renegotiate the scale of the project with them.
Earlier, Chow attended the groundbreaking of a RM46 million market complex in Batu Kawan.
The market, slated for completion in June 2027, will house 82 stalls, including a wet market section, hawker centre, and food stalls. It will also have 449 parking bays.
Chow said the market — the first and largest of its kind in Batu Kawan — is expected to spur the local economy.
