Its legal adviser Yan Lee said the land at Lengkok Burma, Pulau Tikus, comprised pre-war kampung houses, a temple and hawker stalls, with land prices fetching at least RM2,000 per sq ft.

“We have been informed by a reliable source that the land is being negotiated to be sold to a developer. The question is, do we need to sell more state and council-owned land, when we have sold so much already,” he said

Yan said that based on a state assembly reply last year, the Penang Development Corporation, the state’s development arm, had sold about 355ha to private entities since 2013.

He said land assets should be kept for state projects and not sold “lock, stock and barrel”.

“When land continues to be sold at this rate, it is a cause for concern. Why is there a need to sell more land when we have a lot more in cash reserves?” he asked.

Pulau Tikus assemblyman Chris Lee Chun Kit said the land in question was known as Kampung Sireh, and he had not heard of any plan to sell it.

He also said a sale was unlikely as there were plans to upgrade the hawker centre there.

In 2017, the state government sold a piece of land measuring 2.5ha to a private hospital at a cost of RM156 million on a 99-year lease, as part of a RM2 billion medical city project.

FMT has contacted MBPP for comment.