Penang's first island project seen to create RM4b worth of jobs
GEORGE TOWN: The first of the three islands planned under the Penang South Reclamation (PSR) project is expected to create RM4bil worth of new construction jobs for the industry.
This is based on the cost of about RM60 per sq ft to create the 930-ha island.
Penang Master Builders and Building Materials Dealers Association adviser Datuk Lim Kai Seng (pic) told StarBiz that the job opportunities created would be those related to stabilising the soil and laying utility and other essential infrastructure.
“Of the RM4bil, about RM500mil would be for laying infrastructure,” Lim said.
Earlier this month, Penang Chief Minister Chow Kon Yeow said the state government had received the approval from the Department of Environment to proceed with the PSR project near Teluk Kumbar, subject to certain conditions.
The entire PSR project involves reclamation work to create three new islands, measuring 1,800 ha in total.
This is equal to the size of 3,600 football fields. The Penang state government has proposed to implement the PSR project to raise funds for the RM46bil Penang Transport Master Plan (PTMP).
The project delivery partner (PDP) for the PSR and PTMP projects is SRS Consortium. Members of this consortium are Gamuda Bhd, Loh Phoy Yen Holdings Sdn Bhd and Ideal Property Development Sdn Bhd.
It was reported that the PSR project would take up to 20 years to complete.
Lim estimates that the reclamation cost alone would be around RM10bil.
“Once the three islands have been created, the construction and renovation work for the properties to be developed on the islands would generate about RM60bil worth of jobs for a 20-year period,” he added.
The estimate is based on the sales of the reclaimed land at about RM200 per sq ft and on the utilisation of 70% to 75% of the land for development.
“Based on these figures, the gross development value of the projects on the three islands would be around RM100bil, of which about 40% will be for construction and 20% for renovation.
“This would mean the PSR development scheme will generate about RM3bil a year over a 20-year period.
“This is good news for Penang’s construction industry,” he said.
SOURCE: The Star