Bank Negara Malaysia (BNM) is expected to make one final 25 basis point (bps) cut in the Overnight Policy Rate (OPR) as early as in the central bank’s next Monetary Policy Committee (MPC) meeting on Sept 10, 2020 in anticipation of an arduous economic recovery path ahead, DBS Group said today.
DBS senior economist Irvin Seah and strategist Duncan Tan wrote in a note that there is room for further monetary easing to support economic growth in the coming months.
“Onshore IRS (interest rate swap) markets are pricing ~70-80% chance for one last BNM rate cut (25bps) of this easing cycle, either to occur at the Sept 10 or Nov 3 meeting. This would mean BNM hitting our estimate of the policy lower bound of 1.5%, by the end of the year.
“Note (that) BNM had cut the OPR by a total of 125bps year-to-date to 1.75% to complement the equally robust fiscal measures aimed at buffering the economy from the impact of the pandemic. But with growth surprising on the downside and an arduous recovery path ahead notwithstanding, there is room for further monetary easing to support growth in the coming months.
“As such, we now expect one final 25bps cut by BNM as early as in the forthcoming September meeting, to better align the risks in both inflation and growth,” Seah and Tan said.
According to them, Malaysia’s real gross domestic product (GDP) growth contracted by a sharp 17.1% in the second quarter of 2020 (2Q20) from a year earlier. In quarterly terms, they said 2Q20 GDP dropped 51.3% from 1Q20.
They said beyond the direct impact of the Covid-19 pandemic on the health front and strong external headwinds resulting from a slump in global demand, the implementation of Malaysia’s Movement Control Order (MCO) to curb the spread of the pandemic is the main factor behind the 2Q20 growth downturn.
“The downside surprise in 2Q GDP growth has significantly lowered the growth trajectory for the full year. The anticipated turnaround in the third and fourth quarter may not be enough to offset the sharp second quarter decline.
“Headline GDP growth will remain stuck in negative territory for the rest of the year. We have thus lowered our 2020 full year GDP growth forecast to -5.5%, which is at the lower end of the official forecast range of -5.5% to – 3.5%, and the lowest since the Asian Financial Crisis, (during) which the economy contracted by 7.4% in 1998. However, with the low base this year and the global recovery that is currently underway, albeit slowly, we see (Malaysia’s) GDP growth rebounding to 6.0% in 2021,” they said.
Malaysia’s disinflationary pressure is seen building up and the nation’s negative output gap is seen widening amid recessionary economic conditions. Seah and Tan said today even though inflation, as measured by the consumer price index (CPI), has recovered to -1.3% in July, the headline number is expected to remain stuck in negative level for the rest of 2020.
Full year (2020) inflation is projected to average -1.1% before rebounding to 1.8% in 2021, they said.
Source: EdgeProp.my

The works on the Penang South Reclamation (PSR) project are expected to begin first quarter of next year.
Penang Infrastructure Corporation Sdn Bhd (PICSB) chief executive officer Datuk Seri Farizan Darus said the implementation works of Island A would be the first to start.
“The scheduled reclamation works will be done in phases. The first phase involves reclaiming 1,200 acres of Island A.
“Phase One is expected to take about four years to complete,” Farizan told Buletin Mutiara at the stakeholders’ engagement centre (Pusat Perkhidmatan Setempat Nelayan), off Permatang Damar Laut today.
The tri-islands PSR project (Island A, B and C) will be located at the south-end of the Penang island, measuring a total of 4,500 acres in land size. Island A will be 2,300 acres in size, Island B will be 1,400 acres and Island C will be 800 acres.
Farizan said that it would take about nine years to fully reclaim Island A.
“We expect to be able to start selling by the fourth year,” he said.
The PICSB is the special purpose vehicle that will be leading the implementation of the mega projects under the Penang Transport Master Plan (PTMP).
PICSB was successfully incorporated on July 9 this year.
The company will be working on the implementation of mega projects in the state, such as the Bayan Lepas LRT (BL LRT), Pan Island Link 1 and 2A (PIL 1 and PIL 2A) and the Penang South Reclamation (PSR) that have been entrusted to SRS Consortium as the project delivery partner.
PICSB will also be working on the implementation of the three highways and the undersea tunnel projects that are entrusted to the Consortium Zenith Construction (CZC) Sdn Bhd as the design and built contractor.
In addition, the PICSB will be involved in the planning and development of the PSR, which include the topside development.
Farizan said that it has been the state’s intention to meet the conditions set by Department of Environment (DoE) for the PSR project.
“Some conditions have to be complied prior to the implementation of the project. Others will have to be complied during the implementation of the project.
“We have to start the project before June 24 next year (2021). The Environmental Impact Assessment (EIA) report of the PSR was approved by the DoE on June 25, 2019, with 72 conditions to be complied with,” he said, adding that the EIA approval has a two-year validity period.
Stakeholders engagement
Over 5,000 people have been engaged since December 2015 to July this year.
Farizan said that various parties have been engaged over the years; such as fishermen, beach users, business operators and even hatchery operators.
“A total of 5,762 people has been engaged. The stakeholders can get updated and correct information pertaining to the PSR project from the stakeholders’ engagement centres,” he said.
There are currently two centres available – one in Permatang Damar Laut and the other in Gertak Sanggul.
Better facilities, brighter future
Farizan said that the fishermen would not be ‘directly’ impacted by the land reclamation.
“The reclamation works will not be done from the shore onwards. Instead, it will be done 250m away from the shore (seaward), allowing a 250m water channel for the fishermen to conduct fishing activities and to navigate towards the deeper end of the sea.
“There will also be a 250m channel between Island A, B and C.
“We try to cater to the requests of the fishermen to ensure a win-win situation. The fishermen can go out to sea and continue their fishing activities despite the reclamation works,” he said.
SRS Consortium deputy project director Azmi Mohamad said the 250m water channel proposal was considered after taking into consideration the hydraulic studies and reports that were approved by the Department of Irrigation and Drainage (DID).
SRS Consortium strategic communications and stakeholder management department head Audrey Lakai said that the company had proposed to provide a total of four fishermen jetties to assist the fishermen units affected by the reclamation works.
Farizan said that one of the jetties would be located near the proposed Bayan Lepas LRT station in Permatang Damar Laut.
“It is a prime location and it has a huge potential. Travellers using the Bayan Lepas LRT can hop off at the LRT station in Permatang Damar Laut and enjoy a nice seafood cuisine before heading to their next destination.
“We hope to provide better facilities to uplift the livelihood of the fishermen and the communities living in the area with the implementation of the PSR project,” Farizan said.
He added that it is important for the PSR project to materialise as it is the funding model of the PTMP.
Source: Buletin Mutiara

The Housing and Local Government Ministry (KPKT) is formulating a tax that could be imposed on developers who fail to sell their properties as early as early next year, in an effort to reduce overhang of residential units in the country.
Minister Zuraida Kamaruddin said the introduction of the tax could also induce developers to be more sensible and responsible in the projection of their projects, particularly high-rise developments.
She added that the introduction of the vacancy tax does not require Parliament’s approval as no amendment to the existing Act is needed. Once the tax is approved by the Cabinet, KPKT will look at implementing the tax as early as next year, according to the news report on Malaysia Reserve.
“When these units are left empty, it triggers a lot of problems including vandalism, which affects the quality of the house due to the defects.
“So, developers must ensure that the houses are taken up as soon as possible,” she said.
She believed the move is necessary as many housing units have taken more than one year to be filled due to various reasons, whether the developers are unable to sell or buyers fail to move in.
“So, as long as the units obtain the Certificate of Completion and Compliance (CCC), and yet they are unable to sell the units or the units failed to be filled, the developers will have to pay.
“In the future, they will do better projections when they develop houses, while ensuring the projects’ viability and developments that could attract buyers, and not just develop as they wish. With this preventive measure, they can plan better,” she noted.
Last week, Deputy Federal Territories Minister Datuk Seri Edmund Santhara Kumar told Parliament that Putrajaya will study the suggestion to introduce a vacancy tax to be imposed on properties that are unoccupied or unsold for a specified time.
This is similar to the model practiced in developed countries such as Canada and Australia.
Source: EdgeProp.my

Chief Minister Chow Kon Yeow officially launched the Penang Bay International Ideas Competition at Wisma Yeap Chor Ee in George Town today with the hope that the ideas put forth could be tapped by potential developers to transform Penang Bay.

He said the Penang state government, Chief Minister Incorporated (CMI) and Think City are not going to be the mega developers of Penang Bay but they are partners who work together as initiators, integrators and facilitators of development of the Penang Bay.
“This is an idea competition, just an opportunity for Penangites and participants to understand and to appreciate the focus of the state government, Think City and George Town Conservation and Development Corporation (GTCDC) as to the future vision of Penang Bay.
“The ideas can be used to harness the potential of the waterfronts that we have, integrate George Town and Butterworth connectivity, encourage conservation and heritage, and also put new use into this area,” Chow told a press conference at Wisma Yeap Chor Ee today.
Chow said the top three winners and five consolation winners of the competition would be announced in January next year.
The ideas competition is an invitation to propose ideas, designs and concepts for the three component areas, namely George Town Waterfront, Penang Strait and Butterworth Waterfront.
Citing the Jelutong dumpsite as an example, Chow said the winners of the competition might have certain ideas on how the landfill, after undergoing rehabilitation, could add value to the Penang Bay area.
Their ideas, he said, could hopefully be used by the future developers of the Penang Bay project to complement their own plans.
He added that participants are also required to incorporate sustainable development goals and Penang2030 vision for a holistic plan to develop Penang Bay.
He said Think City managing director Hamdan Abdul Majeed had been sharing with him for quite some years on George Town and Butterworth as an important growth conurbation.
Chow congratulated CMI, GTCDC, Think City, Penang Island City Council (MBPP), Seberang Perai City Council (MBSP) and other relevant agencies for working together although the plan was disrupted for a while by the Covid-19 pandemic.
Participants will have until Oct 19 to prepare submissions. The cash award for the top three winners are US$20,000, US$8,000 and US$4,000 while the five consolation winners will each get US$1,000.
State Local Government, Housing, Town and Country Planning Committee chairman Jagdeep Singh Deo, who led a delegation to the World Urban Forum 10 in Abu Dhabi to pitch the Penang Bay project to potential investors, said they had received a number of queries.
He said the discussion to reinvigorate Penang’s shorefronts was held about two years ago.
“Penang is blessed with waterways but we were not maximising its potential,” Jagdeep said in his speech.
“When we were discussing, we said we must find spaces to cater to industries because there is definitely a massive demand for that. We’re the leading industrial state manufacturing hub in Malaysia. Penang is land scare and we must capitalise on what we have.
“We’re not looking at flat industrial areas now. We’re looking at vertical industrial buildings. That is what is happening around the world.
“This project will span some 30km of waterfronts, both here on the island and mainland. On the island, the land area that would probably be part and parcel of this project is 1,800 acres and on the mainland it is 4,500 acres.
“We’re talking about 6,300 acres. That is probably the biggest project for Penang thus far. And this project will kick off very quickly. After the ideas design competition, it can be executed immediately because it is not a project that awaits reclamation.
“Of course, things will be done in phases. It will be done very quickly and very surely.”
Hamdan said the ideas competition was to tap into the world’s best innovative minds to reimagine George Town and Butterworth waterfronts as a new economic zone.
He added that a panel of distinguished and local international judges would select the winners.
“We believe we have the right ingredients that will help us to take advantage of a changing world and position Penang for the future,” said Hamdan.
“The competition is open to all innovators and thinkers from all over the world, whether individuals, teams or firms, and must address the challenges of climate change, technological disruption and social transformation.
“We’ve also adopted the United Nations sustainable development goals (SDGs) as a foundation of their solutions. The competition will enable us to understand and resolve Penang’s challenges while taking hold of the opportunities to prosper.”
Also present at the press conference were state Domestic and International Trade Entrepreneur Development and Consumer Affairs Committee chairman Datuk Abdul Halim Hussain, MBSP mayor Datuk Rozali Mohamud, Penang Development Corporation general director Datuk Mohd Bazid Abd Kahar, CMI deputy general manager S. Bharathi, PLANMalaysia (Penang branch) deputy director Mohd Bashir Sulaiman and Think City urban solutions programme director Dr Matt Benson.
Source: Buletin Mutiara

Bank Negara Malaysia (BNM) today reduced the Overnight Policy Rate (OPR) by another 25 basis points to 1.75 per cent, a record low since the floor was set in 2004.
In a statement today, it said the Monetary Policy Committee (MPC) decided to have the ceiling and floor rates of the corridor of the OPR correspondingly reduced to 2.00 per cent and 1.50 percent, respectively.
“The impact of Covid-19 on the global economy is severe. Global economic conditions remain weak with global growth projected to be negative for the year,” it said.
It added that the reduction in the OPR will provide additional policy stimulus to accelerate the pace of economic recovery.
“The MPC will continue to assess evolving conditions and their implications on the overall outlook for inflation and domestic growth. The Bank will continue to utilise its policy levers as appropriate to create enabling conditions for a sustainable economic recovery,” it said.
The central bank added that although a trough is expected in the second quarter, broad-based weakness in the labour market and precautionary behaviour by households and businesses could affect the recovery going forward.
“Several major economies have begun relaxing measures to contain the Covid-19 pandemic, leading to the gradual resumption of economic activity. Financial conditions have improved, although risk aversion remains elevated.
“Downside risks to the global outlook remain, especially if a resurgence of the pandemic necessitates the reintroduction of containment measures,” it said.
For Malaysia, BNM said that the economic activity contracted sharply in the second quarter of the year, due to measures introduced to contain the pandemic globally and domestically.
“Following the gradual and progressive re-opening of the economy since early May, economic activities have begun to recover from the trough in the second quarter. The fiscal stimulus packages, alongside monetary and financial measures, will continue to underpin the improving economic outlook,” it said.
BNM also said that the projected improvement in the domestic economy is expected to be further supported by a gradual recovery in global growth conditions.
The pace and strength of the recovery, however, remain subject to downside risks emanating from both domestic and external factors.
“These include the prospect of further outbreaks of the pandemic leading to re-impositions of containment measures, more persistent weakness in labour market conditions, and a weaker-than-expected recovery in global growth,” it said.
Meanwhile, BNM said inflationary pressures are expected to be muted this year as average headline inflation is likely to be negative this year, primarily reflecting the substantially lower global oil prices.
“The risks of a broad-based and persistent decline in prices are assessed to be limited as economic activity resumes and demand conditions improve. Nevertheless, the outlook remains significantly affected by global oil and commodity prices. Underlying inflation is expected to be subdued and within expectations,” it added.
Source: Bernama

槟州政府今日与SRS Consortium签署槟州交通大蓝图工程交付伙伴主协议，为推动槟州交通大蓝图立下新的里程碑，全力迈向改善生活素质、创造新的经济机会，并且赋予人民权力和环境的可持续性发展。
此协议涵盖峇六拜轻快铁（BL LRT）、槟城第一和第2A泛岛大道计划（PIL 1、PIL 2A)，以及槟岛南部填海计划（PSR）。
在签署该协议后，SRS的迫切任务为启动A岛填海以及轻快铁的项目。
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将公开招标委任合格承包商进行建筑工作
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州政府将宣布公开招标，以委任合格的承包商进行建筑工作。
作为项目拥有者，州政府承诺将遵守环境冲击评估报告（EIA）中所列出的一切要求。
此协议由槟州首席部长曹观友代表州政府，以及SRS的代表拿督林云琳签署。出席者包括两位副首长、多位州行政议员与州议员、政府机关领导等。
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SRS 1个月内提呈财务方案
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首长指出，签署该协议后的一个月内，SRS将向州政府提呈财务方案，以让州政府研究各种经费，然后才做进一步行动。
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A岛填海前景备受看好
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“我们希望可以尽速启动计划，尤其是A岛填海，根据市场调查，许多商家对此计划深感兴趣，因为槟州发展前景良好，商机处处。”
SRS曾在2015年8月12日被授予得标书（LOA），以使工程交付伙伴（PDP）协议能够获得相关机构的批准，实施槟州交通大蓝图的项目。随后，州政府也获准实施槟城第一泛岛大道计划（PIL 1）以及槟岛南部填海计划。
峇六拜轻快铁计划也已在2019年8月19日至11月19日进行公共咨询，目前正处于最后审批阶段。期间，州政府已获得97％的参与者表示支持在槟城实施轻快铁。
槟州交通大蓝图以及槟岛南部填海计划被视为是槟州政府未来50年的经济转型项目，以建立更强大的国际服务和制造中心。
这是改变槟州景观关的键性步骤，以迈向更先进及精明州属，提供更高收入工作，以及更优质生活。此外，随着国际工艺技术迅速发展，若我们不善用资讯工艺技术（IT）以及完善的设施积极推动综合性环境发展，那么槟城将在先进化的过程中被淘汰。
为此，州政府正在建立一家特殊项目公司（SPV）发行债券，筹募资金来进行峇六拜轻快铁计划。
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确保施工过程透明化
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秉持着能干、问责与透明的CAT政策，槟州政府将在整个施工过程中，确保人民能够获取有关槟州交通大蓝图以及其它相关发展项目的最新信息。
州政府也相信，槟城的未来将取决于这些大型项目的发展，即槟州交通大蓝图和槟岛南部填海计划。这些计划具有强大催化剂，推动槟州增长及前进，并在未来10年把槟城推向国际舞台。
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首长：槟政府承诺以民为本
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槟州首席部长曹观友致词时说，众所周知，槟州希盟政府自2008年执政槟州以来，就承诺要为槟民打造更舒服、清洁、绿意、安全及宜居的城市。
“除了照顾人民的福祉、教育、经济发展、投资、房屋、和谐，州政府也致力于为槟民带来更完善的设施，尤其是解决日愈严重的交通阻塞问题。”
“槟州政府于2015年，通过公开招标征求计划书，委任了SRS Consortium为槟州交通大蓝图工程交付伙伴，概述了四管齐下的方法，以加强槟州经济。 该倡议的目的是改善人民的生活条件、创造新的经济机会，并赋予人民权力和环境可持续性。”
“槟州交通大蓝图是改变槟州景观的关键性步骤，以迈向更先进及精明的州属，提供更高收入工作，以及更优质生活。此外，随着国际技术迅速发展，槟州必须采取积极行动，以先进的信息技术模式和设施创造综合环境，以免被淘汰。”
槟州交通大蓝图主要计划包括：
⦁ 峇六拜轻快铁
⦁ 槟城第一泛岛大道(PIL 1 )
⦁ 槟城第2A泛岛大道(PIL 2A)
⦁ 槟岛南部填海计划
“槟州政府于2015年8月12日发出得标书（LOA）予SRS Consortium，同意让后者获得州及联邦相关部门的批准。该计划迄今几乎已获得全面批准，为了全槟人民的福祉，州政府将致力于持续推动这些项目。”
“槟州政府与SRS Consortium自2015年开始，就进行了多项讨论、会议和研讨会。感谢所有参与的机构，让我们今日可顺利签署主协议。”
“回想过去，槟州政府在实现槟州交通大蓝图上的整个过程并不容易。然而，为了全槟人民，槟州政府承诺将以正面态度完成所有已计划的议程。”
“槟州政府是通过2009年成立的槟州交通理事会，在2013年制定了槟州交通大蓝图，并于2015年公开征求建议书。”
“在SRS Consortium 被遴选为槟州交通大蓝图的交付伙伴后，双方开始准备并提呈各种评估研究报告，以获得相关机构的批准。实际上，我们也已与利益相关者展开了各种会议进行协调，至今仍在进行中。”
“槟州交通大蓝图的主要目的是解决州内愈来愈严重的交通阻塞问题，而这也将间接地影响州内经济发展及社会和谐。若这项目成功落实，必定将带来包容性增长，同时也改善槟岛北部及南部的社会经济差距，并全面解决交通阻塞问题。”
“我们也相信，槟州交通大蓝图计划将提高槟州人民的生产力及生活素质，成为槟州经济增长的催化剂。而此基设目将有效分散车流量，缓解市中心及市郊的交通拥挤。”
“在槟州交通大蓝图下，槟州政府希望公交的使用量可达到40%，目前州内的公交使用量只有8%。”
“槟州透过槟城2030愿景，将继续专注于槟州人民的和谐。其中，在D2的战略举措中，即加强移动性、衔接性和数码基设，州政府兑现了实施槟州交通大蓝图的承诺，旨在分散交通，使槟城人民能够更便捷行动且节省时间。”
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推动经济提供更多就业机会
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“配合槟城2030愿景，实施槟州交通大蓝图的计划将提供更多的就业机会，把人力资源推往更高的价值链，带领槟州迈向更具有弹性及具有竞争力的州属。”
“总体而言，槟州交通大蓝图计划将推动槟州的经济，包括电气和电子业、卫生旅游、 全球商业服务或全球商业服务（GBS）、 保留文化价值和遗产的数码和旅游业。槟州交通大蓝图计划也放眼为外国直接投资（FDI），以及国内或本地企业再投资，带来重大的转变。”
“槟州政府视槟州交通大蓝图及槟岛南部填海计划，为未来50年的槟城经济转型项目，以建立强大的国际服务和制造中心。 占地4500英亩的填海工程，将设有可负担房屋予有需要人士，并且提供完善的公共交通。这项全面的总体规划可以间接吸引外国投资者，并进一步增强槟城的活力。”
“此外，槟州政府举办了槟城南岛总体规划设计比赛（MDC），以确保槟岛南部填海计划可朝向精明城市、具有竞争力，以及可让槟民受益的愿景。该比赛的优胜者将在接下来的几个星期公布。”
“槟州政府相信，槟州未来的发展将有赖于槟州交通大蓝图及槟岛南部填海计划。这些计划具有强大催化剂，推动槟州增长及前进，并在未来把槟城推向国际舞台，成为精明州典范。”
“我希望，这些计划可长期造福槟州人民及下一代。在此，我要感谢所有参与的单位，并希望通过签署该协议，州政府和工程交付伙伴可实现槟州交通大蓝图，带来经济效应，继续蓬勃发展。”

GEORGE TOWN: Penang today said it would consider issuing its own bonds to kickstart its three reclaimed islands project, which would in turn be sold to fund the state’s RM46 billion transport master plan, or PTMP.
Chief Minister Chow Kon Yeow said this after being advised by financiers that federal government approval was not needed to issue its own bonds.
“According to a few financial institutions, we don’t need a federal guarantee. A state government guarantee would suffice. That is good enough,” he said.
Chow was responding to a question about how the state would carry out the PTMP in view of the political realignment at the federal level.

This was because Putrajaya, under former prime minister Dr Mahathir Mohamad, had said it was willing to guarantee a RM10 billion bond to kickstart reclamation work.
The former PM had asked the state to set up a special purpose vehicle company so that the bonds could be issued with a sovereign guarantee.
“The advice (by the former PM) has not been withdrawn. Of course, it is a different PM now. Again, we will study the financial plan, if there is a need for the state to issue bonds.”
Chow said in the meantime, PTMP’s project delivery partners, SRS Consortium (SRS), will propose a plan on how to finance the project.

He said this would entail getting SRS to obtain RM1.3 billion in “bridging financing” and the Penang government would get another RM1 billion for the same purpose.
“SRS is to submit the plan to the state within a month so that the state can look at the cash flow, the costs and so on, and to consider various options of financing the project.”
Chow said priority would be to reclaim island A to the southeast of Penang island so as to cater to the booming manufacturing industry at Bayan Lepas.
Earlier, Chow signed a master agreement with SRS to officially go ahead with the three artificial islands’ project, along with two highways and a light rail transit (LRT) project on the island.
Chow inked the deal with the SRS, which comprises Gamuda Berhad (with a 60% share), Ideal Properties (20%) and Loh Poh Yen Holdings (20%).
The consortium won the project in an open tender and was formally awarded the project on Aug 12, 2015.
As part of the agreement, SRS would see work proceeding on the Bayan Lepas LRT, Pan Island Link (PIL) Highway 1, PIL Highway 2A and the Penang South Reclamation.
The 19-station, 30km LRT project is expected to cost RM8.5 billion, while the PIL 1 Highway will cost RM7.5 billion.
PIL 1 will run for 19.5km from Gurney Drive to a point near the second bridge and take seven years to complete if there are no complications.
PIL 2A, on the other hand, will connect Jalan Permatang Damar Laut to the first of the three artificial islands. There was no breakdown of the cost of this project component.
The PSR, or three-islands project, will reclaim 1,821ha of land and will later be sold to the highest bidder.
In a speech before inking the agreement, Chow said the PTMP was of paramount importance to improve the worsening traffic situation in Penang.
Chow said the goal of the project was to achieve a 40:60 ratio in terms of public transport use to private vehicle use. The current public transport use is at 8%, he said.

Penang will go ahead with its mega projects under the RM46bil Penang Transport Master Plan (PTMP) and also the RM100mil Penang Hill cable car project even without funding from the Federal Government.State Works Committee chairman Zairil Khir Johari said everything was still on schedule and any delay was only because of the Covid-19 movement control order.“Yes, we have requested from the previous Federal Government to assist in the funding of the PTMP and we will continue to talk to the present government on this.
“For the Bayan Lepas Light Rail Transit (LRT) project, the model has always been to pay for the infrastructure project via land reclamation.
“No federal funding for this project is not an issue as we will raise the funds.
“Even for the cable car, there are always ways to do without federal funds. We are confident that all our projects will go on as planned, ” said Zairil yesterday.
Some RM100mil was allocated by the Pakatan Harapan government during Budget 2020 last October for the proposed Penang Hill cable car project.
However, Putrajaya announced early this month that it had cancelled the funding for the project after Perikatan Nasional took over the Federal Government.
Last year, Penang also wrote to the Federal Government to appeal for a RM10bil funding for the LRT and Pan Island Link (PIL 1), which are components of PTMP.
Former prime minister Tun Dr Mahathir Mohamad had then proposed to the state government to issue bonds to fund the Bayan Lepas LRT project.
The RM9bil LRT line will begin from Komtar and pass through Jelutong, Gelugor, Bayan Lepas and the Penang International Airport before ending at the Penang South Reclamation (PSR) near Teluk Kumbar.
The PSR is a proposed project to reclaim 1,821ha of the sea to create three islands south of the airport towards the east around Permatang Damar Laut.
The state has proposed to implement the PSR project to raise funds for the PTMP.
The state received the Environmental Impact Assessment approval in July last year with 72 conditions attached.
Chief Minister Chow Kon Yeow had earlier said that the state was still working on finalising the details of the project delivery partner agreement and trying to get confirmation from the Federal Government on providing guarantee for the PTMP’s financial arrangement with banks.

The Penang government today revealed plans to reclaim about 60ha off the Free Industrial Zone (FIZ) in Bayan Baru.
The project, themed “Linear Waterfront”, will begin from the Queensbay roundabout to the second bridge and will have an estimated gross development value of RM1 billion.
Based on an artist’s impression by project owners Penang Development Corporation, the project will have four oblong-shaped strips of reclaimed land attached to the coast of Penang island.
Announcing the project today, Chief Minister Chow Kon Yeow said it would effectively extend FIZ’s electronics-dominated industrial zone and, at the same time, build a new world-class township.
He said the state government would be calling for a request for proposal (RFP) from interested parties from July 31 to Sept 30 for consideration by the city council and other authorities.
Chow said the winning RfP would reclaim the land and be the master developer for the islands.
“The older FIZ itself is located on reclaimed land measuring 453ha from the Penang Bridge up to Batu Maung in the 1970s. Besides the FIZ, the reclaimed land has been used for other purposes as well.
“The new reclamation project will allow the industrial sector in Penang to develop further and will attract more international companies to invest.
“It must be noted that this Bayan Baru and FIZ townships have raised Penang’s economy for decades and also boosted the country’s foreign direct investments.
“So, I would like to call on those experienced, creative, innovative and qualified to participate in this project,” he said at a press conference at Komtar.
Chow said the proposed project had received preliminary approval from government technical agencies.
He said the project, when complete, would also see new fishermen’s wharves set up., adding that the existing jetties were derelict and needed improvement.
Chow said besides the extension of the industrial zone, the project would entail a waterfront resort encompassing hotels, restaurants, medical, commercial and mixed development.
He said the project would also increase the state government’s landbank in the long run.
Currently, a few reclamation projects are slated for Penang, the key one being the 1,620ha three-island Penang South Reclamation project.
The others include the Seri Tanjung Pinang 2 project measuring 307ha on the northeast of the island, of which 53ha are for the Gurney Wharf project off Gurney Drive.
On the mainland, a 650ha reclamation project off the waters of Bagan Ajam in Butterworth has been mooted but has not taken off.