Gamuda awarded RM3.7b contract for Penang South Island reclamation project
The controversial Penang South Island (PSI) reclamation project is gaining momentum as Gamuda Bhd has been awarded the contract for the reclamation works of Island A. Valued at RM3.7 billion, this contract is a significant milestone in the progress of the PSI development. In an announcement to the bourse, Gamuda confirmed that it had today been awarded the contract for the design, management, construction, and completion of the Phase 1 Reclamation Works of Island A to the turnkey contractor, SRS TC Sdn Bhd – a wholly owned subsidiary of Gamuda. Consequently, SRS TC has further subcontracted the Phase 1 reclamation works to another Gamuda subsidiary, Gamuda Engineering Sdn Bhd. The contract was awarded by the project developer, Silicon Island Development Sdn Bhd – a 70%-owned subsidiary of Gamuda via SRS PD Sdn Bhd, while PIC PD Sdn Bhd, a Penang state government-owned entity, owns the remaining shares. The Phase 1 reclamation works encompass approximately 1,260 acres of Island A and will adhere to all necessary regulatory approvals and compliance requirements. The contract sum for this phase is RM3.7 billion, with a significant portion awarded to Gamuda Engineering. The works are scheduled to commence on July 1, 2023, and complete by June 30, 2030. A performance bond of 5% of the contract sum ensures financial security for the project. The Phase 1 reclamation works are expected to contribute significantly to Gamuda’s revenue and earnings for the financial year ending on July 31, 2024. To recap, the project development agreement signed on March 6, 2023, between the Penang state government and Silicon Island Development established that private sector capital, rather than PSG/PIC PD funding, would be used for the development of Island A. As per the agreement, the project developer is obligated to award the entire scope of works for Island A, including reclamation, infrastructure, and Highway PIL2A, to SRS TC. The PSI reclamation project was scaled down from three islands to one island following a request by Prime Minister Anwar Ibrahim to reduce the scope of the project. The size of the project was reduced from 4,500 acres to 2,300 acres, representing a 49% reduction from the approved plan. Gamuda’s share price closed at RM4.25 today, reflecting a 0.71% increase. Its market capitalisation stands at RM11.31 billion.
Penang South Islands reclamation work starts July 1
KUALA LUMPUR: The Penang South Islands (PSI) reclamation project, which is a new urban development off the coast of Penang Island that includes homes, leisure, and work sites, will finally begin reclamation work next month. PSI is intended to be an Internet of Things (IOT)-enabled smart city to complement Georgetown. It will be based on sustainable and green living and environmental, social, and governance principles, with the goal of being a top investment destination in the area. On July 1, Gamuda Bhd will begin the RM3.72 billion reclamation work for Phase 1 of Island A of the PSI project, which is situated close to the Penang International Airport at Bayan Lepas. SRS TC Sdn Bhd, the turnkey contractor, has been given the design, management, construction, and completion of the Phase 1 reclamation works by Silicon Island Development Sdn Bhd, a 30:70 project developer company between PIC PD Sdn Bhd and SRS PD Sdn Bhd. SRS PD and SRS TC are both wholly-owned subsidiaries of Gamuda Bhd. The Phase 1 reclamation works have been given to Gamuda Engineering Sdn Bhd, another fully owned subsidiary of Gamuda, by the turnkey contractor. PIC PD is a fully owned subsidiary of Penang Infrastructure Corporation Sdn Bhd, a special purpose company established by the state government to lead the implementation of the Penang Transport Master Plan. Gamuda told the stock exchange yesterday that the contract’s scope covers the design, management, construction, and completion of Island A’s Phase 1 reclamation works, which total roughly 655.59 hectares and are all in accordance with the approvals of the relevant authorities. According to Gamuda, construction would start on July 1, 2023, and last until June 30, 2030. “The Phase 1 reclamation works are expected to contribute positively to the revenue and earnings of Gamuda Group for the financial year ending July 31, 2024,” it said. The PSI project’s downsizing from the three islands that were initially planned to be included, Island A (2,300 acres), Island B (1,400 acres), and Island C (800 acres), to just one island (2,300 acres), won’t have an effect on Gamuda’s profitability, according to analysts. The Penang government decided to scale down the PSI project following Prime Minister Datuk Seri Anwar Ibrahim’s announcement on May 6 that the Federal Government will provide additional funds to assist the state in expediting the construction of the George Town-Bayan Lepas light rail transit (LRT) project. The downsize was a 49 per cent reduction from the original approved plan, and only development works for Island A (Silicon Island) would proceed, while the second and third islands, B and C, would be discontinued. The development work would only be carried out on Island A (Silicon Island), a reduction of 49 per cent from the first approved plan, and the construction of Islands B and C would be abandoned. Gamuda participates on two levels in the Island A reclamation project through its ownership of SRS TC, acting as both a project developer (PD) and a turnkey contractor (TC) under a 70:30 joint venture between SRS and the state nominee. Gamuda’s engagement on the Island A reclamation project is on two levels, firstly, through its ownership in SRS TC, and secondly, as a project developer and a turnkey contractor through the 70:30 joint venture between SRS and the state nominee.
Preparatory works for Penang Silicon Island project to begin today following approval of EMP, says Penang CM
GEORGE TOWN: Preparatory works for the Penang Silicon Island project will begin starting today and will continue until the related works are completed, Chief Minister Chow Kon Yeow said today. He said this followed the approval to the Environmental Management Plan (EMP) for the project which was obtained from the state Department of Environment (DOE) on July 21. The go-ahead is a follow-up to the nod of the Environmental Impact Assessment Report (EIA) for the Penang South Island (PSI) project which was approved with 71 conditions by the central DOE through a letter dated April 11. “With the approval of the agencies involved, the preparatory works for the Silicon Island will begin from today and continue until the related works are completed. “On behalf of the state government, we express our highest appreciation to the state DOE for the careful assessment that has been given in evaluating and approving the related EMP. “The decision is the result of cooperation and joint efforts to ensure that the development of the Silicon Island project complies with the environmental and safety standards of the local community,” he said today, also expressing the state’s appreciation to all parties which had contributed views in drafting this EMP. In May, Chow announced that Penang would do away with two of three islands of the controversial PSI reclamation project, which meant a scaling down of 49 per cent of the total three man-made islands project. Island A, now known as Silicon Island, measures about 920ha. Meanwhile, Chow said, in line with the state government’s commitment to make ex-gratia payments to the fishing community affected by the project after the approval of the EMP, the payment of 75 per cent of the ex-gratia would begin to be credited in phases starting today while the remaining 25 per cent would be completed in early 2024. “Payments will be made in phases taking into account the scope of the PSI project which has been reduced to an island, compared to the previous initial planning. “The development of the Silicon Island project is designed based on environmental, social and governance (ESG) principles. It is expected to become a leading technology centre in the region and open up new job opportunities by injecting lasting economic benefits to the locality. “To begin with, a total of 600 sea and land-based job opportunities will be offered over the next 18 months. Priority will be given to fishermen and local residents,” he added. On April 26, Chow announced that Penang had finally obtained the EIA approval for the PSI project, which came with 71 conditions to be fulfilled. The approval was for the three islands, namely A, B and C. The controversial reclamation project had undergone a comprehensive process with regards to the EIA report approved on June 25, 2019, but there was an appeal until the decision was overturned. Several revised reports were subsequently submitted. PSI involves the development of three artificial islands, with an area of 1,800ha, in the waters off Permatang Damar Laut, near Bayan Lepas. However, the project received objections from the fishing community and environmental non-governmental organisations in the state because it was alleged that the project would damage the marine ecosystem in the area.
Historic visit to Silicon Island
THE Penang government is optimistic that the Silicon Island project, once completed, will replicate the success of the Bayan Lepas Free Industrial Zone (FIZ). Chief Minister Chow Kon Yeow said this is possible through a topside development plan for the project. Today, Chow, alongside Penang Yang di-Pertua Negeri Tun Ahmad Fuzi Abdul Razak and other state dignitaries, made a historic visit to Silicon Island since its reclamation started in September of this year. “The topside development plan features the high-tech industrial park called ‘Green Tech Park’ (GTP) as well as digital technology infrastructure, e-commerce, and Global Business Services (GBS) facilities. “The GTP is designed with environmental, social and governance (ESG) concepts that will be able to attract compliance-conscious investment that is now a global corporate focus. “The location of the GTP and BPO also is strategic because it is close to the Bayan Lepas Free Industrial Zone (FIZ), Penang International Airport (PIA) and the Sultan Abdul Halim Muadzam Shah Bridge. “As a result, this will guarantee the development and increase the competitiveness of Penang’s electrical and electronics (E&E) manufacturing sector, similar to what was achieved with the development of Bayan Lepas FIZ,” Chow said in his speech at the Region 1 Marine Police Base in Batu Uban today. Silicon Island, renamed from Island A under the proposed Penang South Islands (PSI) project, is located at the south end of Penang Island, measuring 2,300 acres in land size. It is the only island to be reclaimed out of the proposed three islands after the state government decided to scale down the PSI project on the advice of the Federal government. Silicon Island is expected to be fully reclaimed by 2032, with the entire development spanning 25 years. The reclamation of PSI’s Silicon Island is undertaken by Silicon Island Development Sdn Bhd (SIDSB). SIDSB is the project developer (PD) set up by PIC PD Sdn Bhd and SRS PD Sdn Bhd. PIC PD owns 30% of SIDSB while SRS PD owns the remaining 70%. Chow said the development of Silicon Island is expected to generate a Gross Domestic Product (GDP) of RM1.1 trillion and an RM74.7 billion investment, apart from creating 220,000 job opportunities that will benefit Penangites and Malaysians. “Silicon Island will also improve liveability and quality of life, increase household incomes, empower the people, especially local fishermen through the Social Impact Management Plan (SIMP), increase the built environment’s resilience to reduce carbon emissions, increase the use of renewable energy and face climate change challenges. “Therefore, we are confident that Silicon Island will play its role as an environmental, social and governance (ESG) compliant project to attract investors, develop the state’s economy, and safeguard the well-being of the local community at the same time,” he said. In a press conference later, Chow said since the reclamation of Silicon Island started in September, a total of five acres of land have been reclaimed so far. “This is just preliminary work only. The project can be expedited based on the market demand. “Starting next year, we will increase the number of ships to be used to ferry the sand and pump the sand to Silicon Island. “We expect to reclaim around 300 to 400 acres per year. This does not include infrastructure works as they can only begin after the reclamation works are fully completed,” said Chow. Arriving at the site at about 10am today, Ahmad Fuzi, Chow and other distinguished guests were briefed on the progress by the officers from the Gamuda Berhad. They spent about 30 minutes on the man-made island. Many of them were seen taking the opportunity to snap photographs around the vicinity. The visit included tree planting as a symbolic gesture. Among those who visited the site were Deputy Chief Minister I Prof Datuk Dr Mohamad Abdul Hamid, state Infrastructure, Transport and Digital Committee chairman Zairil Khir Johari, state Tourism and Creative Committee chairman Wong Hon Wai, state Housing and Environment Committee chairman Datuk Seri Sundarajoo Somu, Penang Island City Council (MBPP) mayor Datuk A. Rajendran, and Penang Infrastructure Corporation Sdn Bhd (PIC) chief executive officer Datuk Seri Farizan Darus. Story by Riadz Akmal and Edmund LeePix by Law Suun Ting and Noor Siti Nabilah NoorazisVideo by Alissala Thian and Siti Nuratikah Rahmat
Big prospects for Silicon Island
Exco man: Project expected to create 220,000 new jobs, RM1.1 trillion in GDP GEORGE TOWN: The man-made Silicon Island project off the Penang island’s southern coast is expected to create 220,000 new job opportunities in the next 30 years, says Zairil Khir Johari. The Penang infrastructure and transport committee chairman said the project would also generate RM1.1 trillion in gross domestic product (GDP) and attract RM74.7bil in investments. He said as the project owner, the state would have full authority in deciding the use of the 930ha reclaimed island. “A total of 360ha would be used for infrastructure and public space, while another 291ha is meant for industrial use. “The rest would be for housing (157ha), mixed development (66ha) and commercial (56ha). “A big portion of the sale would go towards supporting the cost of reclamation and infrastructure,” he said during the state assembly sitting here yesterday. Zairil said following the announcement by Prime Minister Datuk Seri Anwar Ibrahim in May last year that the Federal Government would finance the construction of the Light Rail Transit (LRT) system in Penang, the state government had agreed to reduce the scope of developing the project, previously known as Penang South Islands (PSI). “The reclamation of Island B and Island C from PSI development would not proceed at the time being. “The rationale for continuing to develop Island A, better known as Silicon Island now, is to fulfil the needs of Penang to address the lack of industrial space, which is directly linked to the existing ecosystem in Bayan Lepas and Penang International Airport, as well as the North-South Expressway.“In the next 40 years, Silicon Island will be developed for industrial, commercial, residential, and tourist attractions to meet Penang’s needs.,” he said. To a question by A. Kumaresan (PH-Batu Uban), Zairil said that since the Free Industrial Zone (FIZ) in Bayan Lepas has been well established among investors, the development of a Green Tech Park (GTP) on Silicon Island would further complement the FIZ. “It would fulfil the needs of investors who want to expand their current operations and attract new investors. “The GTP would be the main development on Silicon Island and play a major role in driving the economy and creating job opportunities in the long term,” he said. To another question by Goh Choon Aik (PH-Bukit Tambun), who had asked if the state would still reclaim Island B and Island C in the future, Zairil said: “For Island B and Island C, their approvals are still valid but the state has decided not to initiate work for the time being,” he said. Zairil also explained that any surplus profit from the Silicon Island project would go towards developing state infrastructure, including on the mainland.
Silicon Island gets global credit
GEORGE TOWN: Penang’s Silicon Island is getting international attention as a green investment model featuring unique design and Environmental, Social and Governance (ESG) features. Most of the talk on media platforms recently was focused on the Silicon Island’s 70:30 public-private transport modal shift to reduce carbon emission. Silicon Island reclamation project in Batu Maung began last September and is set to complete in 2032. Taking on a macro view, Silicon Island Development Sdn Bhd (SIDSB) chief executive officer Datuk Szeto Wai Loong said master planning for the development was done in favour of public transportation, as opposed to the current private vehicle-centric travel pattern, with the current ratio being 10:90. “We want to move lots of people seamlessly. This shift encourages the use of public transportation and bicycles, with a 44% reduction in transport-related emissions in mind for Silicon Island compared to a business-as-usual scenario.“There will be a comprehensive Bicycle-Pedestrian network, Light Rail Transit (LRT), electric buses, solar-powered water taxis and strict car parking restrictions to discourage the use of private vehicles,” Szeto said. Beyond the LRT, there will be a network of buses and water taxis within and around the island. Cycling will be prioritised over the few expected cars, with extensive cycling networks providing first and last-mile connectivity. The network of canals, collectively measuring 5km, allows for electric water taxis. Szeto said this would be another added component to the public transport mix that not only serves Silicon Island but also adjacent areas such as strategic points along Penang’s coast. The manmade island will open a new chapter in Penang’s quest to brand itself as a foremost global electrical and electronics (E&E) manufacturer and a hub for international investments, trade, business services, tourism and leisure. According to Szeto, Silicon Island would also adopt a city-wide waste management strategy comprising a food macerator system and a pneumatic waste collection system to reduce waste in landfills. “Each household will be equipped with macerators, which break down food waste before it is channelled directly into the sewerage system. This reduces pressure on garbage landfills, cuts methane gas emissions and lowers the carbon footprint. “There will also be on-site composting bins, with emphasis on up-cycling organic waste into soil conditioners and natural fertilisers,” he said. The reclamation of Silicon Island is targeted to be completed in 2032. Some RM4bil will be invested to reclaim the first phase of Silicon Island comprising 607ha. The overall island acreage is 930ha. Szeto said the sustainable island would feature an industrial area – Green Tech Park – entirely powered by renewable energy meant to attract investments from ESG-conscious businesses. “Other green technologies will include a dual-function sewerage treatment plant that recovers water for non-potable use. “Other water reduction strategies are rainwater harvesting systems and water-saving fittings and wares,” he said. The development will dedicate 17.5% of the total land area as public green spaces, or 162ha, in the form of gardens and parks, sandy beaches, mangrove habitats and a navigable canal system to promote liveability and a healthy lifestyle. “All these attributes will create a robust ecosystem for investors, high-tech manufacturers and the anticipated population of 102,000 inhabitants,” Szeto said. He added that the development complied with the National Physical Planning Council (MPFN) ESG advice to achieve sustainable urban development, emphasising green infrastructure, energy efficiency and reduced carbon footprint for Silicon Island. Based on Silicon Island’s master plan’s objective to cut carbon emissions to 45.47%, the Malaysian Green Technology & Climate Change Corporation (MGTC) awarded Silicon Island the 5 Diamond MGTC Low Carbon Cities 2030 Challenge Accreditation. At the international level, SIDSB is also pursuing the Building Research Establishment Environmental Assessment Method (BREEAM) certification. BREEAM is a UK-based certification body for the sustainability performance of built environments. “This is what sets us apart from other green developments and cities, and positioning the enclave as a model for urban sustainability in the 21st century,” Szeto added.To ensure that the ESG attributes are safeguarded and implemented, an urban development plan has been formulated to ensure compliance by the Silicon Island plot developers. “The enclave may require legislation under the Town & Country Act 172 as a development plan to ensure that the ESG guidelines are binding and enforceable,” said Szeto. To date, a total of 11ha of land has been reclaimed. Szeto said they would speed up the progress to reach the target of 40ha by the end of 2024. “From 2025 onwards, we target to reclaim about 121ha annually,” he said. SIDSB is the project developer set up by PIC PD Sdn Bhd and SRS PD Sdn Bhd. PIC PD, wholly owned by the state government, owns 30% of SIDSB and SRS PD the remaining 70%. SIDSB has awarded the design, management and construction of Phase 1 reclamation works of Silicon Island to turnkey contractor SRS TC Sdn Bhd, a wholly-owned subsidiary of Gamuda Bhd.
Towards a smart, sustainable and resilient Silicon Island
THE Penang government, through its Town and Country Planning Department (JPBD), launched the Preliminary Publicity Programme for the Penang South Island 2050 Local Plan (RTPSI 2050) today. Scheduled to take place for a week until July 29, the programme aims to develop a smart, sustainable and resilient development plan by gathering views, ideas and suggestions from all sectors of society. The Penang South Island, now known as the Silicon Island project for Island A, encompasses 2,300 acres of reclaimed land. The public can visit three locations to scan the QR codes prepared for participation in this programme: the state Town and Country Planning Department (JPBD) at level 57 in Komtar, the hallway at level 3 in Komtar or the Pusat Perkhidmatan Setempat Nelayan (PPSN) in Permatang Damar Laut. The Penang government, which owns the project, is responsible for ensuring it adheres to a legally approved development plan under existing legislation. This one-of-its-kind development in the region is envisioned as a ‘Green City of the Future’. Chief Minister Chow Kon Yeow, who officiated the launching ceremony this morning, urged the public to participate and provide their views and ideas in this programme. “I also request that continuous dissemination to all parties so that no one is excluded from giving their insightful views and suggestions. “The PSI Local Plan will comprehensively translate national, state, and local policies into a statutory plan based on the core features of smart, green, and sustainable development,” Chow said in his speech during the launching of the programme at Amari SPICE Penang in Bayan Lepas today. Additionally, in line with the Penang2030 vision, Chow said Silicon Island has been designed by incorporating the best urban design practices concerning the principles of Environmental, Social, and Governance (ESG). “Also, there is a 70:30 ratio transportation mode shift, the incorporation of Sustainable Development Goals (SDGs), a 45% reduction in carbon emissions, and prioritising green urban planning. “The development of Silicon Island is also in line with the Penang Structure Plan 2030 and the advice from the National Physical Planning Council (MPFN),” he added. It is learned that upon completion of the week-long programme, the state Town and Country Planning Department will produce the PSI 2050 Local Plan draft. Subsequently, a Publicity and Public Participation Programme will be conducted to gather views and feedback from all stakeholders to produce the best local plan document. Meanwhile, state Local Government, Town and Country Planning Committee chairman Jason H’ng Mooi Lye said that the Local Plan (RT) serves as a primary reference document for planning and development control. It is a third-tier development plan document within the national development framework and the second at the state level after the Structure Plan (RS). “The preparation of RTPSI 2050 is a key platform and pragmatic step by the state government as a noble initiative to shape new development on newly reclaimed land areas based on appropriate development controls and in line with the current state scenario. “The study approach designed is somewhat different compared to the preparation of other Local Plan studies in Malaysia because this is the first time RTPSI 2050 is being prepared based on smart development, resilience, liveability, and sustainability. “The goal of the RTPSI 2050 study is to provide a comprehensive and competitive Local Plan for the state, transforming the reclaimed island into a smart, sustainable, and resilient development,” H’ng said in his speech. Two main aspects, namely legal and planning requirements, play a pivotal role in the need to establish the RTPSI 2050. H’ng also mentioned that the preparation is subject to the legal provisions of Sections 12 to 16B of Act 172 and that the document must contain proposal maps and written statements supported by implementation guidelines. “RTPSI 2050 will also serve as a detailed reference for all proposals by the local planning authorities for development and land use,” he added. H’ng added that the current planning scenario in Penang also contributes to the need for the preparation of RTPSI 2050. “Among them is providing an effective alternative to avoid the exploration of existing hill and forest areas, as well as providing space for the growth of Penang’s industry, especially in the Bayan Lepas area. “Indirectly, we can create economic and employment opportunities for the surrounding population and ensure an inclusive, liveable environment with smart city planning and modern transportation support,” he said. Responding to a question by a reporter on whether the state government plans to establish a new local council or district on Silicon Island once it is completed, Chow said the 2,300 acres of reclaimed land is considerably small for such an initiative to happen. The project developer of the Silicon Island project is Silicon Island Development Sdn Bhd. SID Sdn Bhd, which is 70% owned by SRS PD Sdn Bhd, has awarded the design, management and construction of the Phase 1 reclamation works of Island A to turnkey contractor SRS TC Sdn Bhd, a wholly-owned subsidiary of Gamuda. Also present during the event earlier were Penang Infrastructure Corporation Sdn Bhd (PICSB) chief executive officer Datuk Seri Farizan Darus, state Housing and Environment Committee chairman Datuk Seri Sundarajoo Somu and state Town and Country Planning Department director Datuk Rozita Hamit. Story by Kevin VimalPix by Siew Chia EnVideo by Siti Nuratikah Rahmat
Silicon Island’s first building to be up by 2026, says Penang CM
PENANG expects the first building on the mammoth RM6 billion reclaimed Silicon Island to be ready by 2026 as about 400 acres of land would be progressively added off the coast of Batu Maung. Penang Chief Minister Chow Kon Yeow said about 700 acres should be firmly established within the next two years and the first building should be completed by 2026. Silicon Island is the state’s first major reclaimed island. Despite objections from many of the state’s residents, the Penang goverment was adamant that it was necessary in view of the state’s acute shortage of land. The immediate emphasis is the construction of a light rail transit (LRT) depot there, as the reclaimed island is included in the major route of the proposed LRT, said Chow in a dialogue session with members of the Penang-based Malaysia Semiconductor Industry Association (MSIA) at The Marriott in Gurney Drive. The session was moderated by MSIA secretary Solomon Lorthu, who is also the Penang Motorola CEO. Chow reassured MSIA members that Penang was working hard to boost its infrastructure in line with its growing reputation and global top ten ranking in supplying electronic components. He said the LRT remained a top priority for the state despite objections from certain quarters. Chow also fielded questions about the water supply situation, saying the state was proactive in handling the issue. He urged patience as the state dealt with the consequences of climate change. “For the next few years, the supply would be under duress as there is a bottleneck of undersea piping which needs to be untangled besides the dry weather,” Chow said in reference to the undersea pipes which were laid decades earlier. Chow said the Penang Water Supply Corporation would undertake a pipe replacement programme for up to eight months. With a new water treatment plant in Prai and the intake of treated water from Perak, the water supply issue in Penang was expected to be resolved soon. Chow added that the state was collaborating with MSIA to help raise the local number of engineers by emphasising the learning of science, technical, engineering, and mathematics (STEM) subjects. – July 30, 2024.
First factory expected on Silicon Island by 2027
THE Penang government anticipates the first factory on Silicon Island, currently being reclaimed off the south end of Penang Island, will be constructed in 2026 and operational in 2027, according to Zairil Khir Johari, state executive councillor for Infrastructure, Transport and Digital. Silicon Island, formerly known as the Penang South Island, will consist of 2,300 acres of reclaimed land. The entire reclamation process is expected to be fully completed by 2032, with the full development spanning 25 years. Zairil said 40 acres of land have been reclaimed since the reclamation work began in September last year. “We hope to reclaim 1,000 acres of land by the end of next year. We foresee the first factory will start construction in 2026 and will start operation in 2027. Very soon, we will be able to groundbreak the first building on Silicon Island, which will mark a great milestone for Penang,” Zairil said during his speech at the Geotechnical Engineering Seminar 2024 at Ascott Gurney Penang today. “Silicon Island represents the future of Penang, much like Bayan Lepas was in the 70s when it was transformed from a swampy agricultural backwater into a premier industrial zone in Malaysia. “The Silicon Island has been designed with Environmental, Social, and Governance (ESG) compliance island in mind. Of 2,300 acres, 40 per cent are set aside for infrastructure, open spaces and blue-green corridors. “We also take into consideration climate change and the rise of sea levels and ensure that the island is built with water canals and lots of trees and greens to keep the temperature down. “Thirty per cent of the island will go into a Green Tech Park, covering approximately 700 acres. This new industrial zone will attract some of the biggest names in advanced technologies to provide high-income jobs. “As Penang is a premier destination for manufacturing, we aim to attract quality investors for them to expand their operations, further their research and development, and engage in integrated circuit (IC) designs and other advanced activities. We also hope to attract some blue-chip and catalytic investors.” He added that today, Penang continues to contribute about one-third of Malaysia’s exports despite being the country’s second smallest state. Last year, Malaysia exported goods worth RM435 billion, with Penang contributing greatly, and Penang achieved a record foreign direct investment (FDI) of RM61.7 billion last year. In addition to the manufacturing sector, Zairil said the tourism sector has also played a pivotal role, citing that the number of Penang Hill arrivals was higher than in 2019, the peak year for Penang before the Covid-19 pandemic. Zairil also mentioned the importance of the upcoming Light Rail Transport (LRT) project that will ease the state’s public transport system. He said while construction is set to begin this year on government-owned land that is free from encumbrances, land acquisition is also underway. “If everything goes according to plan, construction will be completed in 2029. After a year of testing, we should be able to launch the operation of the Mutiara Line in 2030. This will hopefully reduce the pressure on our roads,” Zairil said. He added that the LRT line will connect the industrial zone of Silicon Island, with the Penang International Airport, Universiti Sains Malaysia, Spice, Gelugor, Jelutong, Macullum, and Komtar as well as Penang Sentral Butterworth, linking to the existing national rail system, like KTM Komuter and KTM Electric Train Service (ETS). Zairil also provided an update on the Penang Hill Cable Car Project, which was launched by Prime Minister Datuk Seri Anwar Ibrahim last month, noting that it will take less than two years to complete. Regarding the Penang International Airport, he said the first phase of expansion will involve ancillary buildings making way for the terminal’s expansion. It is expected to be completed by 2027. Zairil further reported that the Air Itam-Tun Dr Lim Chong Ee bypass project is over 50 per cent complete. “As we advance these developments, we are committed to ensuring sustainability, safety, and adherence to the highest standards of geotechnical engineering remains paramount. The Penang Safety Guideline for Hill Site Development, 2nd Edition 2020, exemplifies our dedication to these principles. “Incorporating cutting-edge geotechnical engineering practices into our projects is also a cornerstone of our commitment to the Sustainable Development Goals (SDGs), particularly in promoting environmental conservation. “These initiatives are designed to ensure that Penang remains an inclusive, safe, resilient, and sustainable place for all. “This seminar serves as an invaluable platform for professionals to exchange expertise and insights, addressing the most pressing challenges and opportunities within the field of geotechnical engineering. “I am confident that the discussions and knowledge shared here today will significantly advance our collective expertise and leave a lasting effect on geotechnical engineering practices in Penang and beyond,” Zairil concluded. Also present were Penang Island City Council mayor Datuk Rajendran Anthony, Institution of Engineers Malaysia (IEM) Penang branch chairman Chan Wah Cheong, organising chairperson Heng Lee Sun, Geotechnical Engineering Lead Datuk Yau Ann Nian, adviser Datuk Seri Lim Kok Khong and secretary Lim Sheau Rou. Rajendran noted that the seminar provided a platform for geotechnical engineering professionals from Malaysia, Singapore, Hong Kong and Indonesia not only to learn but to share their experiences. He emphasised that Penang’s recent developments from expanding its infrastructure to enhancing public spaces are the result of a convergence of public-private partnerships, and a commitment by the state’s leaders, engineers, and developers to address significant challenges. “Your expertise and insights are vital to ensuring the safety and viability of our projects and the well-being of our people. Let us continue to nurture the spirit of collaboration and create a more sustainable and resilient community. Together, we are stronger, and together, let us build a better future for generations to come,” Rajendran said in his speech. Heng highlighted geotechnical engineering is the backbone of our infrastructure, with success being significantly influenced by collaboration among stakeholders and authorities, such as the Penang Island City Council and the Seberang Perai City Council. “Let us keep prioritising safety, quality
Penang’s Silicon Island project on right track in its first year
The Penang South Reclamation (PSR) project will benefit the state’s socio-economy, besides creating various jobs and stimulating economic growth, says Deputy Chief Minister I Datuk Ahmad Zakiyuddin Abd Rahman.
