Housing and local government minister Reezal Merican Naina Merican said federal authorities want to ensure that only high technology industries are allowed there to avoid depending on unskilled workers, which mainly comprise foreigners.

Recently, residents from more than 10 housing estates near the project held a peaceful protest against the proposed construction of centralised labour quarters (CLQs) in the area, which they said would result in the placement of thousands of foreign workers.

They had proposed that the construction be shifted to the Ara Kuda area in Tasek Gelugor, which is not too far away.

Reezal, who is Kepala Batas MP, said if the industries there involved unskilled workers, they need to be placed in CLQs in the area and this could see an influx of foreign workers.

“I reiterate my stand that there should not be any CLQs set up in the area. I have even expressed my disagreement on this verbally with the Penang Island City Council mayor and the project developer.

“This is because the area (Jalan Tun Hamdan Sheikh Tahir) is an old residential settlement and a traditional village. Therefore, it is inappropriate to have CLQs there,” Bernama reported him as saying following the launch of the eSports Youth Cabin here last night.

Reezal called for the relevant authorities to also carry out a social impact assessment first so that the residents in the area understand the goal before agreeing to the project.