GEORGE TOWN, October 18 – Penang Chief Minister, Chow Kon Yeow, has come under sharp criticism from Tan Kok Ping, the life honorary president of the Penang Chinese Chamber of Commerce (PCCC). In a recent statement, Tan described Chow as “incompetent, ignorant, and shameless” for avoiding questions regarding a controversial land deal in Batu Kawan. The issue revolves around the sale of industrial land in Batu Kawan, which originally belonged to the Penang Development Corporation (PDC), to Umech Construction Sdn Bhd (Umech) for less than market value.
The PCCC found this directly negotiated deal to be unacceptable, alleging that a property developer had taken control of Umech and offered to lease parcels of land at high rates. Tan expressed his bewilderment at Chow’s emphasis on the professional and transparent evaluation of the company involved. He urged the authorities to make the evaluation report public, stating that the revelations would be laughable. Tan’s stance is that Umech played the role of a “property agent” during the transaction process, and this controversial deal is likely to lead to legal action and repercussions.
The PCCC’s president, Datuk Seri Hong Yeam Wah, suggested that the Penang Development Corporation should handle the controversial Batu Kawan Industrial Park 2 (BKIP2) project independently rather than outsourcing it to a third party. Hong argued that PDC’s history of successfully developing nine other industrial zones indicates that they have the capability to undertake this project themselves. He stressed that selling the project to a third party would result in a lack of control over plot prices, potentially deterring investors. In contrast, if PDC manages the project, they can set competitive pricing to attract investors and gain full control of the land.
The BKIP2 project, also known as the Byram Industrial Park, has been embroiled in controversy due to the direct award of the land to UMECH Land Sdn Bhd for RM646.02 million, which the PCCC alleges is significantly below the land’s value. The Penang Chief Minister, in response to PCCC’s concerns, explained that the project was awarded to UMECH after a business matching exercise at EXPO Dubai 2020. However, the lack of transparency and unanswered questions about the deal have raised suspicions. Hong called for a thorough investigation of the deal and a reshuffling of the PDC management, stating that the land sale fiasco has revealed the arrogance of the PDC management’s executive powers.
Note: The comments and statements in this article reflect the opinions of individuals and organizations involved and do not represent official findings or decisions.
