Penang to settle amount owed to Penang Development Corporation after 14-year delay


Penang Chief Minister Chow Kon Yeow speaking to the press during a press conference at KOMTAR. ( March 19, 2025 ) — LIM BENG TATT/The Star

GEORGE TOWN: The Penang state government has reiterated its dedication to paying the balance, reportedly about RM400mil, owed to the Penang Development Corporation (PDC) following a 14-year delay.

Chief Minister Chow Kon Yeow said a recent review by the state and PDC revealed that a balance from the 2011 Bayan Mutiara land deal needed to be transferred to PDC.

"The revenue from the land transaction amounts to RM1.07bil and was deposited in the state government's revenue account between 2011 and 2018.

"However, these funds must be transferred to PDC to support the implementation of Affordable Housing Scheme (RMM) projects.

"These projects have been or are currently being implemented in Bandar Cassia Phase 1 in Batu Kawan, Teluk Kumbar in Bayan Lepas, Kampung Jawa in Butterworth, Pintasan Cecil in George Town, Mak Mandin in Seberang Perai, and Bandar Cassia Phase 4 in Batu Kawan," Chow said during a press conference in Komtar on Wednesday (March 19).

He added that the state has channelled part of the revenue to PDC.

"Over the years, the state government has reimbursed PDC through multiple transactions.

"Following a discussion on Dec 17 last year, PDC is now preparing state council meeting papers to present to state authorities soon," Chow said.

Chow added that the final distribution amount will be determined based on an agreement between the state government and PDC.

"This follows the purchase and development agreement (PDA) signed in 2011, which requires both parties to finalise the financial management of the project's sale proceeds," he said.

 

 

 

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