Ministry Proposes 10-Year Extension of Land Lease for Penang MSM Sugar Refinery under the Supervision of Transport Department
In a recent development, the Federal Land Development Authority (Felda) chairman, Datuk Seri Ahmad Shabery Cheek, is leading negotiations with the government and the Railway Assets Corporation (RAC) over the extension of the land lease for Malaysia Holdings Berhad's (MSM) sugar refinery in Perai.
The refinery, currently leased from the RAC, has been operational since 1964, with its lease expiring last year. However, the discussions for a 10-year extension have been proposed by the Ministry of Transport (MOT).
The redevelopment of Kampung Manis, where the factory is located, is not dependent on the refinery's permanent relocation. The refinery will be given sufficient time to plan its future direction due to the redevelopment of the Kampung Manis site. The redevelopment is being carried out in phases, allowing the refinery ample time to relocate.
The refinery, operated by MSM, is tasked with ensuring a monthly supply of 24,000 tonnes and maintaining the nation's buffer stock of 32,000 tonnes of granulated sugar. The sugar refinery's operational challenges have been acknowledged by Transport Minister Anthony Loke, who believes it is reasonable for the refinery to be given time, but it must cooperate with the authorities.
The redevelopment of Kampung Manis aligns with the Madani Government's vision and Prime Minister Datuk Seri Anwar Ibrahim's aspiration to provide better housing for all segments of society. Squatters in the area of the factory will be provided with free housing due to the poor condition of their living environment. The redevelopment of Kampung Manis is not just a part of the Madani Government's vision but also a step towards improving the living conditions of those residing in the area.
The refinery will not need to relocate or cease operations immediately. In fact, it has been confirmed that the refinery will not be closed immediately, with a minimum of 10 years for relocation. This provision ensures stability for the refinery and the community it serves.
Datuk Seri Ahmad Shabery Cheek will hold discussions with the Penang government and RAC on extending the land lease for the country's largest sugar refinery. The proposal seeking a 10-year extension for the land lease of the sugar refinery will be brought to the Cabinet.
This news brings relief to the community and the industry, as the extension of the lease ensures the continuity of the sugar refinery's operations and its significant contribution to the nation's sugar supply. The redevelopment of Kampung Manis, meanwhile, promises improved living conditions for its residents.
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