The Penang government will have to study very carefully to come out with a win-win situation regarding the land lease premium rates for industrial land.

Chief Minister Chow Kon Yeow said currently the state Land and Mines Department is gathering all state agencies to discuss land development in the state.

“We want to look into the issue. They have completed their first round of discussion and will be reporting back to the exco.

“Of course, one of the issues is that since we started the industrialisation about 50 years ago, the land lease for industrial plot is usually 60 years and the 60 years are going to expire in the next five, 10 or 15 years.

“So for some of the investors, they are quite concerned about the amount of premium rates that the state would charge for a new lease of 60 years.

“But don’t worry. The state government ensures a clean and straightforward process to extend land lease,” Chow told reporters after officiating the Seminar & Book Launch – ‘From Free Port to Modern Economy: Economic Development and Social Change in Penang, 1969 to 1990’ at Penang Institute in George Town today.

Chow said the state government relies solely on the valuation by the state Land and Mines Department. It is the government valuation agency that decides the value of the land and recommends the premium rates to be charged.

“So, it is a very transparent process.

“The renewal rates should be calculated based on the current market value at the time of application and not based on the original price of the land.

“We cannot compare today’s land prices with the original prices of the land. It was cheaper then because some of the land were used to be coconut plantations, but today all of these land are matured industrial zones.

“So the department will consider all of these factors,” he added.

He also said that land revenue was the state’s biggest source of revenue and would require a very detailed discussion and consideration before making any decision.

“From the land revenue we get, the state can have a sufficient source to look after the people’s welfare and to spur the development in the state,” Chow said.

Speaking about the programme, Chow said the state government was committed to ensure the legacy left by the late Tun Dr Lim Chong Eu would be continued towards the path of industrialisation and modernisation.

He said the industrialisation and modernisation in Penang would never end because there was still so much work to do.

“The thing about this so-called ‘modern economy’ is that it is never modern enough.

“There is always more catching up to do, and once you slow down, you get left behind.

“So, today my administration has to continue the work and to continue responding to the challenges of the day,” he said.

According to Chow, the state government is always grateful and values the noble contributions by the Penang second chief minister to make the state what it is today.

“I am glad to be reminded of how much innovation and strategic boldness were needed for Penang to emerge from the bad times of the late 1960s to become the Silicon Valley of the East.

“We should all pause a minute to imagine the enormous task that Tun Dr Lim Chong Eu and his team took upon themselves.

“Much depended upon them to succeed at the time. If they have not succeeded, the brain drain from Penang would have been many times worse.

“But they succeeded and with that success, Penang’s connection to the global economy and to global possibilities, are kept alive. We are where we are today because of them,” he added.

Also present were Penang Development Corporation (PDC) general manager Datuk Mohd Bazid Abd Kahar, Penang Institute executive director Datuk Dr Ooi Kee Beng and PDC first general manager Datuk Seri Chet Singh.

Source: Buletin Mutiara