GEORGE TOWN, October 17 – The Penang Development Corporation (PDC) has concluded its examination of the UMECH Land Sdn Bhd case and found that the selection process, including cash contributions and the payment schedule to PDC, was transparent and consistent with PDC’s policy. PDC also noted that this collaboration was reasonable and had a positive impact on PDC’s cash flow, including from a commercial perspective, benefiting the development of the state of Penang.
However, the significant change in UMECH Land Sdn Bhd’s equity structure resulting in changes to those who control and lead the project’s implementation without prior notification and official approval from PDC is a matter taken seriously and cannot be accepted by PDC. As a result, PDC has decided to terminate the joint venture agreement with UMECH Land Sdn Bhd, providing a three-month notice based on Clause 19 of the PDC UMECH Land Sdn Bhd Joint Venture Agreement.
Consequently, after the contract termination, PDC is directed to extensively advertise via various mass media channels through a Request For Proposal (RFP) for collaboration proposals regarding the development of the BKIP2 Industrial Park. PDC will soon advertise this RFP to attract interested investors. This strategic decision reflects PDC’s commitment to ensuring transparency and adherence to established processes in all its partnerships and collaborations.
