GEORGE TOWN – An IJM-led consortium has refuted the claims made by Penang Chief Minister Chow Kon Yeow last week that Penang Development Corporation (PDC) rejected its RM 818 million offer for the Byram land deal due to its failure to meet several conditions outlined in the request for proposal (RFP).
The consortium – which consists of IJM Properties Sdn Bhd (60% stake), Aspen Vision All Sdn Bhd, and Mettiz Capital Sdn Bhd (40% stake) – also lamented the lack of chance given by PDC for it to clarify its proposal for developing the land to create the Batu Kawan Industrial Park 2 (BKIP2).
In a statement, the consortium said that the “summary rejection” of its proposal by the state development agency without allowing it to present or explain its solutions is inconsistent with the objectives of an RFP process.
“An open dialogue would have allowed us to address concerns, align expectations and demonstrate the proposal’s alignment with the state’s strategic priorities.
“Despite this outcome, we remain committed to constructive engagement with PDC and other stakeholders to resolve outstanding concerns and explore pathways forward,” said the consortium.
The consortium believed that the land development project has the potential to generate high-value jobs, attract foreign investors and position Penang as “a hub for future-ready industries”.
“The consortium remains committed to working collaboratively with PDC and other stakeholders to deliver a project that drives economic progress while upholding principles of transparency and responsible growth,” it added.
Last Thursday, Chow said in the state legislative assembly that the state development agency rejected the proposal presented by the consortium as it failed to comply with five out of nine key requirements in the RFP, including land use rules, ownership terms, and payment methods.
The consortium’s proposal was also rejected as it introduced additional demands which the agency could not accommodate without incurring losses for PDC as well as infringing its governance principles, according to Chow, who is also the PDC’s chairman.
The demands outlined by Chow were an exclusively industrial development instead of a mixed development, a freehold ownership instead of a 99-year leasehold, increased access to PDC-owned land, assurances that key infrastructure would be in place, and a request for PDC to prepare a quarry site at Batu Kawan for the development.
Explaining the demands
Clarifying its freehold status demand, the consortium said that it fully adhered to the leasehold requirement outlined in the RFP and that the freehold status was proposed as “an alternative enhancement” that could generate additional revenue for Penang, with the consortium prepared to consider higher premiums for converting the land to freehold.
“This (freehold status) was never a condition of our proposal, and we remain fully committed to proceeding with the leasehold terms without conditions. Suggestions that we mandated freehold status do not accurately reflect the intent of the consortium,” the consortium added.
Regarding the land use, it justified its fully industrial development plan instead of the mixed development outlined by PDC in its RFP as it saw the site’s potential and the evolving demands of investors.
Additionally, the consortium said that a fully industrial plan – which would feature a 161-ha solar farm to power the industrial park – would make Penang a destination of choice for multinational firms that are looking for sustainable industrial solutions.
“It also complements the existing mixed-use elements in (existing) Batu Kawan Industrial Park 1 (BKIP1), further establishing BKIP2 as a model for sustainable industrial development,” added the consortium.
The consortium also defended its quarry proposal, as it would support efficient landfilling works necessary for the project while at the same time providing additional revenue for PDC.
On its demand for readily available infrastructure, the consortium asserted that its proposal was aligned with established practices, where PDC – being the master developer – would provide basic infrastructure—such as power, water, and telecommunications—up to the land boundary.
It also said that it is committed to independently financing and constructing all required infrastructure within the development site, including roads, bridges and utilities, in full compliance with local authority and regulatory requirements.
“This approach reflects adherence to regulatory standards while ensuring efficiency and seamless execution of the project,” it added.
The consortium also justified its access to adjacent land owned by PDC under the first right of refusal (RFR) as it would help support the long-term viability of the development should PDC decide to develop them for industrial purposes.
“This approach ensures continuity in industrial development planning and execution while aligning with past and present practices. Granting this right would not disadvantage PDC in any way.” – December 2, 2024
