GEORGE TOWN, May 23 – Penang Legislature Opposition Leader Datuk Jahara Hamid (BN – Teluk Air Tawar) and changed the atmosphere at the state legislative assembly sitting today with heated up the the debate on the motion of Penang State Government sold the 6.4 acre land for at RM156 million, or RM559 per square feet is “too cheap”.
She asked why the land was not sold at the market price and claimed permission was granted for a hospital, hospital suite and a hotel in a short time. She said the state had the upper hand in such transactions and should have imposed conditions which can benefit the people.
The land, owned by Penang Chief Minister Incorporated, was sold to Island Hospital Sdn Bhd to build a 600-1,000-bed hospital and other developments. The investment is said to be worth at least RM2 billion and the hospital is expected to be completed in five years.
In the press conference later, Penang Chief Minister Lim Guan Eng refuted the allegation the land in Peel Avenue was sold below market value. He said the land was valued by the Valuation and Asset Services Department (JPPH), an agency under the Finance Ministry, at RM156,440,000 for freehold, RM148,620,000 for a 99 year lease, at RM119,940,000 for a 60 year lease and RM96,474,000 for a 30 year lease.
He said the final selling price of RM156 million for a 99 year lease was higher than that of the JPPH and told Jahara to refer the matter to the Ministry if she was not satisfied. When pointed out the valuation, copies of which were distributed to reporters, was conducted in Sept 2015, Lim said the valuation was valid for one year.
He said they did not sell below the market price but according to the price set by JPPH. He also added that if she (Jahara) is not happy with the price tag, she can direct attack JPPH. Lim was also baffled why Jahara was against the hospital project when one of the National Key Results Areas (NKRA) was to develop the medical tourism industry.
Lim said Penang will heed the NKRA set by the federal government by expanding medical tourism in the state. It was reported that Island Hospital Sdn Bhd had already put a downpayment of RM30 million for the land, owned by Chief Minister Incorporated.
The remainder of the RM126 million (of the RM156 million) owed must be made in three months after a hospital licence is acquired. The hospital has been given two years to acquire the licence from the health ministry. If it fails to do this, it will forfeit 2% of the RM30 million given as downpayment for the land.
Island Hospital Sdn Bhd plans to build an “Island Medical City” comprising an initial 600-bed hospital. This will be increased to 1,000 beds in the future. A hotel will also be built in the later stages. The project is also expected to provide 2,000 employment opportunities, from low-skilled jobs to medical specialists. — PN
