The redevelopment of Penang Hill Astaka has reached a significant milestone as it enters its second phase, marking a major step towards transforming the iconic food hub into a modern and sustainable dining destination.

Penang Hill Corporation (PHC) general manager Datuk Cheok Lay Leng explained that the project is structured into three phases. The first phase, which involved constructing a temporary Astaka, was completed and has been operational since February 25 this year. This initial step set the foundation for the comprehensive transformation of the site.

The second phase, now underway, involves demolishing existing structures to make way for the main building’s construction. The tender process for this next phase is expected to open by the end of March, inviting qualified contractors to bid for the project. Once finalized, construction is scheduled to commence in June 2025, with full completion expected by the end of 2026.

Chief Minister Chow Kon Yeow officiated the groundbreaking ceremony for Phase Two, accompanied by key state officials, including state Tourism and Creative Economy Committee chairman Wong Hon Wai, state Local Government, Town and Country Planning Committee chairman Jason H’ng Mooi Lye, and Penang Island City Council (MBPP) mayor Datuk A. Rajendran.

Chow highlighted that the RM20 million redevelopment, fully funded by the state government, aims to elevate Penang Hill Astaka into a world-class dining destination. The new Astaka will feature refined dining spaces, upgraded facilities, and a modern aesthetic catering to both local and international visitors. With increasing tourist numbers, the upgrade is necessary to accommodate higher demand while ensuring comfort and sustainability.

The project is also aligned with other key initiatives on Penang Hill, including the Penang Hill Cable Car project and the proposed upgrade of the old quarters in Strawberry Valley. These developments, outlined in the Penang Hill Summit Area Concept Master Plan, are designed to accommodate anticipated growth in visitors while preserving the area’s Unesco Biosphere Reserve status.

Sustainability is a key focus of the redevelopment. The new Astaka will maintain the existing site’s footprint and adhere to Green Building Index (GBI) certification standards. Features such as a rooftop viewing deck, improved waste management systems—including a new garbage centre and food composter room—enhanced ventilation, and expanded storage and washing facilities will ensure better efficiency and environmental responsibility.

To enhance visitor experience, additional amenities such as a dedicated baby room, wheelchair-friendly and senior-friendly facilities, and expanded restroom facilities will be introduced. The total space will increase by 52% from 20,316 to 30,989 sq ft, nearly doubling the seating capacity from 280 to approximately 530.

During the redevelopment, PHC has relocated vendors to the temporary Penang Hill Food Alley at Dataran Bukit Bendera to ensure business continuity. Once completed, the upgraded Astaka will further strengthen the area’s role as a key attraction, offering a diverse and enhanced dining experience for visitors to Penang Hill.

The Penang state government has opened a Request for Proposal (RFP) for a redevelopment project in Mak Mandin, covering over 10 acres of land with decades-old flats. This initiative aims to rejuvenate the area, introducing modern and sustainable development while enhancing the living conditions of the local community.

The registration of interest for the RFP has been open since 17 March 2025 and will close on 4 April 2025 before noon. Interested parties must ensure timely registration to be eligible for participation.

A briefing session and site visit have been scheduled for 10 April 2025. Attendance for both is mandatory to qualify for the RFP, as it provides crucial insights into the site conditions and project expectations.

The RFP documents will be available from 10 April 2025 and can be obtained from Kaunter LPNPP, Level 3, Kompleks Tun Abdul Razak (KOMTAR). The final submission deadline is 9 July 2025, and only fully Malaysian-owned companies that attend both the briefing and site visit will be eligible to participate. Failure to meet these requirements will result in disqualification from the RFP process.

Proposed redevelopment area

The highly anticipated My Ideal Homes Photo Contest is back for its 8th edition!

Organised annually by Ideal Property Group, this photography competition invites talented photographers across Malaysia to showcase their creativity and stand a chance to win exciting cash prizes.

This year, in response to growing enthusiasm and numerous requests, Ideal Property Group is thrilled to introduce a brand-new category: Mobile Photography. Whether you’re a professional photographer or an avid mobile shooter, this is your opportunity to capture stunning visuals and gain well-deserved recognition.

The 2025 contest will now feature three categories: Architecture Charm, Drone Shot and Mobile Photography. Participants can submit photographs featuring landscapes or architectural elements within any Ideal Property Group’s development.

The competition runs from today to 20 June 2025, with free participation and unlimited submissions per category, though each contestant can only win one prize. Judging will be based on relevance to the photography category, uniqueness, originality, and creativity. The list of winners will be announced live at the award ceremony, expected to be held at 1st Avenue Mall Penang in July or August.

Prime Minister Datuk Seri Anwar Ibrahim has assured that the proposed Urban Renewal Act will protect homeowners by providing them with revitalised properties, compensation, and living benefits throughout the redevelopment process.

Speaking through his senior press secretary, Tunku Nashrul Abaidah, during the Prime Minister’s Office (PMO) daily briefing on Wednesday, Anwar emphasised that the renewal project must be conducted with homeowners’ consent, ensuring their agreement before proceeding.

A key aspect of the bill is its compensation framework, which ensures homeowners retain their rights to the redeveloped site. Compensation will be based on the future market value of their property rather than the current value, allowing owners to regain ownership of their upgraded homes.

“This is different from the current system, where compensation is based on present market value, making it difficult for homeowners to afford new properties,” Anwar stated.

To support residents during the reconstruction phase, the bill proposes various benefits, including transit housing rental payments, ex-gratia payments for home renovations, and additional financial aid.

Addressing concerns, Anwar dismissed claims that the bill would displace Malays and Bumiputera from urban areas or solely benefit developers. He affirmed that the legislation aims to uphold the dignity of urban residents, particularly Malays, allowing them to continue living in their communities with improved living conditions.

The bill also sets a consensus threshold for redevelopment. Projects involving buildings less than 30 years old require 80% resident approval, while those over 30 years old need 75%. For abandoned or derelict housing, only a simple majority of 51% is needed.

“This bill offers a solution to the long-standing struggle between homeowners and developers,” Anwar concluded.

The Penang Island City Council (MBPP) has announced a Request for Proposal (RFP) for the redevelopment of the Batu Ferringhi Market Complex, a MBPP-owned property.

MBPP Councillor Nicholas Theng Jie Wey stated that the complex, strategically located on Jalan Sungai Satu, directly opposite Pinang Emas Apartments, was originally designed as a wet market when it was built in 2017.

“However, due to low demand and a lack of business activity, the complex was returned to MBPP.

“Hence, MBPP intends to open a tender process for the complex’s redevelopment, inviting proposals for commercial and community-based uses,” he said during a press conference at the EOC Building, Jalan Kampung Jawa Baru on Thursday.

Several other MBPP councillors, including Mohamad Khairani Abdul Shukor, Nur Hidayah Che Rose, R. Hari Krishnan, Mohamed Yusoff Mohamed Noor, Benji Ang Ming Quan, Chen Wooi Teong, and Ooi Mei Mei, were also present at the press conference.

Aiming for Maximum Utilization

Theng highlighted that the two-story complex is equipped with modern facilities, including an elevator, a hall, multipurpose rooms, and parking spaces for cars and motorcycles.

“We want to ensure that this asset is fully utilized—not just for business purposes but also to benefit the local community through meaningful activities.

“MBPP hopes this tender will attract qualified applicants with innovative and competitive concepts to revitalize the complex, ultimately adding value to the community and the state’s economy.

“Proposals should be practical, high-value, and capable of enhancing socio-economic activities in the area. We believe this project can create a positive impact for the local community,” he added.

The tender will be advertised on 24 March 2025, and will close on 5 May 2025. Interested parties must attend a briefing and site visit at the complex on 7 April 2025, at 10:30 AM to qualify for submission.