GEORGE TOWN, September 22 — The Penang government has offered to facilitate discussions between the Federal Land Development Authority (Felda) and the Railway Assets Corporation (RAC) over the land lease of MSM Malaysia Holdings Bhd’s sugar refinery in Perai, which sits on 7ha of RAC land and faces lease expiry in five years.
Chief Minister Chow Kon Yeow said while the land belongs to RAC, the state holds authority on leasehold matters and will support negotiations to balance Felda’s request for an extension with RAC’s plans for an affordable housing project in the area.
Chow noted that MSM, owned by Felda’s commercial arm FGV Holdings Bhd, has a large facility in Johor that could absorb Perai’s operations if required, but stressed that constructive talks were essential to ensure both industrial and community needs were met.
The redevelopment plans, which include relocating 177 Kampung Manis households into free affordable homes, remain a state priority to improve living conditions in the long-established settlement.
