Yesterday, chief minister Chow Kon Yeow announced that the Penang South Islands project had been reduced to 2,300 acres (931ha) on a single island south of the Penang International Airport runway.

GEORGE TOWN:

The Penang South Islands reclamation project will still be good for the state’s economy although it has been scaled down by almost half, a business group said.

Penang Chinese Chamber of Commerce said although there will now be one island, instead of three originally planned, it would still encourage more businesses, especially high-tech firms, to set up factories.

“There are hundreds of trades involved in reclamation and they will spur the economy,” its president, Hong Eam Wah, said.

Hong said the lack of real estate in Penang for large factories had resulted in companies going to Kulim, Kedah, instead.

Yesterday, Penang chief minister Chow Kon Yeow announced the reduction of the PSI project to 2,300 acres (931ha) on a single island south of the Penang International Airport runway, compared to the original plan of three islands measuring 4,500 acres (1,821ha).

Development will now focus on Silicon Island, formerly known as Island A, which will take 20 years to complete

Developer Jerry Chan said despite the reduction in the reclaimed area, the size remained substantial. He also said It was also logical to reduce the scale of the project.

“You cut the cloth according to your size, this includes reclaiming (land) according to the current realities. Subsequent reclamation work will be dependent on future needs, population growth, and industrial expansion,” the former president of the Penang Real Estate and Housing Developers Association said.

Chan said the compromise would also inspire more confidence among investors in the knowledge that the project would go on uninterrupted.

He said there was no loss of employment opportunities, or decreased revenue, as the project would be carried out based on necessity.

Businessman Rethinam Pillai said based on past experiences, reclamation had been good for Penang.

He said the Seri Tanjung Pinang reclamation project, which was approved some 20 years ago, had spawned one of the most sought-after residential areas on the island.

Pillai said the state government should soldier on despite the NGOs’ objections, adding that Penang was on course to be the next tech hub of Asean.

“The Silicon Island reclamation project is set to bring newer 5G, 6G and artificial intelligence-related industries to Penang.

“This project will create a lot of jobs and the spillover effect will be felt by generations to come,” he said.

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Scaled-down PSI will still boost Penang’s economy, say businessmen

The Penang Chinese Chamber of Commerce says it will encourage more companies, especially high-tech firms, to set up factories.