Penang not expecting big profits from sale of Silicon Island land, says exco

State executive councillor Zairil Khir Johari said a study will be done on the use of profits from the sale of land on Silicon Island once the project is ready.

GEORGE TOWN: Penang does not expect significant profits from the sale of land on Silicon Island, which is being reclaimed off the southern coast, says state executive councillor Zairil Khir Johari.

He said the project’s goal was long-term economic benefits over immediate financial gains.

“The state government is not expecting big profits from the land sale. The positive impact that will be felt in the long-term is more important,” he said in a written reply to Lee Boon Heng (PH-Kebun Bunga) in the state assembly today.

The state government has a 30% stake in the project, while the lion’s share is held by SRS Project Developer Sdn Bhd (SRS PD), an entity controlled by developer Gamuda Bhd.

Lee had asked about the expected profits for project delivery partner SRS Consortium after the land sale on Silicon Island and whether these would fund other infrastructure projects.

Zairil said profits would only be realised after land-use approval by planning agencies. A study would be done on the use of profits from the land sale once the project is ready in 10 years.

Separately, he said the state would spend RM1.53 billion to acquire 236 parcels of land for the Komtar-Bayan Lepas LRT line, including a cross-channel link to Butterworth. The costs would be covered by the federal government.

Chief minister Chow Kon Yeow told the assembly that seven bidders were vying to develop the land in Byram, Batu Kawan, into an industrial park, with expected returns of RM780 million.

The state land was previously sold in a controversial direct deal that was later reversed.

State executive councillor Jason Hng also said a 700-lot car park will be built together with the Penang Hill cable car project.

He said there was no need to widen Jalan Utama and Gottlieb Road, leading to the proposed cable car station, as traffic impact studies show it is not necessary.