The joint development agreement (JDA) stipulates that the three parties will jointly develop both the affordable homes and the newly announced Rumah Bakat Baru Madani schemes with houses to be priced between RM225,000 and a maximum of RM420,000, Bernama reported.

SkyWorld Development’s CEO Lee Chee Seng said the company’s selection for the landmark development in Penang underscored the property developer’s ability to meet the demands of a growing, vibrant market with its proven expertise.

“Being chosen through a rigorous request for proposal affirms the confidence placed in our capability to develop projects that align with Penang’s growth trajectory.

“This development is about more than expansion – it reflects our commitment to ensuring more Malaysians can own a quality home that enhances their lives, while creating meaningful opportunities for sustainable growth and value,” he said in a statement.

The JDA entails the purchase of 65.36ha in Batu Kawan and 13.78ha in Seberang Jaya, for RM502.7 million along with a RM40.2 million project management fee.

Both are subject to an increase of 6% per annum from the date of the JDA and to be fully paid over a period of 10 years, said SkyWorld Development, adding that the first phase of the development is scheduled to be launched in 2026, with a projected 15-year development period for the entire development.

Prime Minister Anwar Ibrahim witnessed the signing ceremony. Also present were housing and local government minister Nga Kor Ming and Penang chief minister Chow Kon Yeow.