GEORGE TOWN, March 19 — The RM400 million owed by the Penang state government to its development arm, Penang Development Corporation (PDC), originates from the 2011 sale of Bayan Mutiara land.
Penang Chief Minister Chow Kon Yeow said the sale of Bayan Mutiara, also known as Penang World City, generated RM1.07 billion, which was deposited into the state’s coffers between 2011 and 2018.
“However, the proceeds from the project must be channelled back to PDC to implement the affordable housing scheme (AHS),” he said at a press conference in Komtar today.
He said a portion of the proceeds has already been transferred to PDC, funding six ongoing AHS projects.
The six projects are located in Bandar Cassia Phase One (Batu Kawan), Bayan Lepas, Butterworth, Pintasan Cecil (George Town), Mak Mandin (Seberang Perai), and Bandar Cassia Phase 4 (Batu Kawan).
“There is still a sum that needs to be channelled back to PDC upon further checks,” he said.
Chow, who is also the PDC chairman, said the state aims to offset the outstanding amount.
“The final sum to be offset will be decided based on an agreement between PDC and the state government,” he said.
He added that the decision will be based on the purchase and development agreement signed in 2011, with further details to be announced after the state executive council reaches a final decision.
