Penang Watch

The Site

Where is the site?

The Penang Turf Club on Penang Island. It has been sold to a private developer, Abad Naluri Sdn Bhd (see below)

How big is the site?

260 acres, of which 206 acres are earmarked for the building of PGCC and the rest as a Hill Park (hill slopes which are unsuitable for ‘development’)

What is so significant about the site?

It is one of the few remaining large open green spaces on Penang Island, which could benefit from a much more sensitive ‘development’. For example, it could be gazetted as a State Park and turned into a wooded forest for the benefit of future generations.

When did the Turf Club acquire the site?

In 1935, for a small sum. The Turf Club officially opened in 1939.

What price was paid for the land?

RM488 million in kind and in cash, which works out to RM43 per square foot. Even if you exclude the portion of the land that cannot be developed, it still works out to RM64 psf, which is very cheap. The land was bought when the zoning category was ‘open space’ (meaning it could not be developed into the sort of project now proposed).

How much is the land worth now?

With the re-zoning of the Penang Turf Club land to “mixed development”, the land value has probably leapt to RM250-300 psf, which is the land value in neighbouring Jesselton. Abad Naluri is laughing all the way to the bank – even before the first bulldozer rumbles into the site. (Today, open recreational land in Penang is worth around RM60 psf.)

The Developer

What is Equine Capital Bhd?

This is the company which is spearheading the promotion of PGCC. It has a 25% stake in the overall developer, Abad Naluri Sdn Bhd.

What is Abad Naluri Sdn Bhd?

A private company whose shareholders include Equine (25%); Prof Tan Sri Dato Dr Jalaludin bin Syed Salim (around 24%); Aneka Mayang Sdn Bhd (around 40%); and about 40-50 Chinese shareholders, each holding 100 shares, with a couple of small Malay shareholders.

Prof Jalaludin had a long academic career in both University Malaya and University Putra Malaysia (UPM) before retiring as Vice Chancellor of UPM in 2001. Amongst other things, he is chairman of Bank Rakyat Malaysia and of EcoFirst Consolidated.

He is also one of two shareholders (RM1 share each) of Aneka Mayang Sdn Bhd, the other being Dato’ Idris bin Denan. Aneka Mayang’s registered and business addresses are both in Taman Equine, Selangor. Dato’ Idris is one of the two directors; the other being Datuk Haji Md. Isahak bin Md. Yusuf.

Who is Dato Patrick Lim?

He is a 40-year-old businessman who hails from the northern state of Penang. He has become very close to Khairy Jamaluddin and to Abdullah Badawi, so much so that Dr Mahathir recently referred to Patrick Lim as “Patrick Badawi’. The Malaysian First Family’s family hugely expensive home at 34, Bay View Terrace, Mosman Park, Perth (some estimate RM60 million) is actually registered under the name of Patrick Lim’s wife. Lim has particular influence in Trengannu, recently organising the (many would say, disastrous) RM250 million Monsoon Cup, and being involved in deciding other costly development projects.

His father was a well-known figure in horse racing, and the passion for horses remains as the symbol of his company, Equine Capital Bhd, whose headquarters is in Seri Kembangan. In Penang, Equine controversially obtained tracts of land in the vicinity of the proposed Second Bridge. Equine is developing some of this into a housing-cum-commercial complex known as Crescentia Park, which will be developed as Penang’s third satellite city. The project, expected to be completed by 2015, covers an area of 450 acres. The gross development value (GDV) and development cost are estimated at RM860 million and RM636 million respectively. Early this month, Abdullah had visited the project and Lim was present to brief him on it. Apart from this, Lim has also obtained the right to design and reconstruct the Penang Turf Club at an estimated cost of RM375 million. The Turf Club will be shifted to Batu Kawan from its present location in Georgetown. And of course, guess who is developing the Turf Club site into PGCC?

Why is Patrick Lim so influential?

Simply because of his strong friendship with Khairy Jamaluddin and Abdullah Badawi.

The Project

What is the scope and size of the project?

Abad Naluri has submitted plans to the MPPP to build the PGCC which includes, among other things, the following: 40 blocks of high rise towers, the tallest of which will be 53 storeys high; 27,000 car parks; 7,000 private homes; 14.8 million sq ft of commercial space. There are plans for a 26 acre ‘eco-tech’ park in the centre, which will be privately maintained (?cost to go in?). Besides that, there will be major road schemes in the surrounding area – affecting particularly Jalan Scotland, Jalan Masjid Negeri and Jalan Air Itam (not forgetting PORR).

This project will change the face of our Island, and will create enormous traffic jams on Scotland Road and nearby areas.

How much of the land is being used for the development?

All of it is included in the development plans, though some of it will be too steep to ‘develop’ into houses, etc. Of course Patrick Lim at one time claimed that 40% of the development would preserve ‘green’ lungs – a figure that would seem impossible to substantiate, but obviously includes the bits of the plot which cannot be converted to profit-making buildings.

What is a zero carbon project?

No one really knows. There are all sorts of claims and definitions. What we do know is that the site of PGCC will not be zero-carbon whichever definition is used: the project’s own publicity tells us that. They will make it zero-carbon by ‘offsetting’ carbon emissions from the Penang site by investing in other projects elsewhere in the world. How PGCC are measuring carbon emissions is anyone’s guess: the developers have not backed their claims of a ‘zero carbon’ PGCC with any detailed statistics or evidence, beyond very vague references to eco-friendly architecture and design. It is unclear, for example, whether they are including people emissions, traffic emissions, and/or the pollution caused by the actual building of the city, which will last ten years or more and cause chaos to Penangites.

Is this a zero carbon project?

No. Even in PGCC’s own vague descriptions, they admit that the PGCC site will not be zero carbon but by buying into carbon-friendly projects elsewhere in the world, the developers will claim that PGCC is a ‘zero carbon’ project! This will not stop Penangites suffering from more pollution.

What does PGCC stand for?

Penang Global City Centre.

Who are the architects and other professionals behind the project?

An international competition was held to design PGCC. Two architects emerged form the process: Hani Rashid and Nasrine Seraji, but it is unclear exactly how much control they will have over the final design of the whole city. The iconic towers that have been highly featured in the media etc may be theirs, but what about the other (40+?) tower blocks, traffic systems and more?

What is the arrangement between the Turf Club and Abad Naluri?

As part of the sales consideration of RM488 million, Abad Naluri will build a new racecourse on their land in Batu Kawan purportedly valued at more than RM300 million. This was acquired from the Penang Development Corporation (PDC). When that is ready, the Batu Gantong land will be handed over to Abad Naluri and Abad Naluri has to pay the balance of the sales price. In addition Turf Club members have reportedly been compensated with RM20,000 each.

The brochure produced by the developer during the official launch by the PM shows only the two iconic towers; why are the other towers not shown?

One of the real worries about this project is that it is being ‘sold’ to the world with very little substance. The glossy pictures and glossy words of the brochure only add to the uncertainty about exactly what the developer is planning, exactly what Penangites will be expected to subsidise (road widening and underpasses, etc?) and exactly what the impact of this project will be. The lack of information, and the unwillingness of the developer to supply information, tells us that they have very little commitment to Penangites and to public discussion of this project. Why? If it is the wonderful project they say it is, why are they not telling us its details? What is there to hide?

Why is the site being subdivided into parcels?

This is probably the crunch. The PGCC developers have split the site into 15 different parcels. They are embarking on an international roadshow to sell these parcels to ‘international investors’. The reluctance of the Equine and Abad Naluri to ‘come clean’ on the project may well be due to the fact that for them, the main ambition is to sell off the parcels, pocket the money and laugh all the way home from the bank. MPPP will then be faced with 15 different developers each with their own version of what they want to build – a nightmare scenario that unfortunately is only too likely to come true. And of course the developers will no doubt try to avoid doing an Environmental Impact Assessment for the whole project, on the basis that there are ‘15 different projects’. This avoidance of due process and making the project open for public scrutiny and discussion tells us that this project is a dishonest and shabby one. Let us hope that the MPPP is professional enough and caring enough about both the morality and the future of Penang to put a stop to it.

Approval

Has this project been approved by the MPPP?

The project is currently in the process of a planning application with the MPPP. New guidelines for planning applications mean that the MPPP have to give an answer to the developer within 4 – 6 months of application. It is possible that the MPPP can call for further information at that point (rather than say yes or no). The huge worry is that MPPP will approve the project with minimal detail from the developers, no wide public consultation or discussion, and with no transparency.

Has an EIA been done for the project?

A preliminary EIA has been done (very rapidly) but this is not publicly available. A detailed EIA with public display of results and a chance for public feedback is theoretically necessary for a project of this size (certainly ought to be), but again developers in the past have sought to bypass this process by dividing the project into parcels of below 50 hectares, and then arguing that an EIA is not needed. We hope the MPPP and state government insist on a full EIA being done: this project is major and will have a major impact on us all. This is the very least the developer can do to fulfil its moral obligations. If a full EIA is required, the public do have a chance for comment.

Have the immediate neighbours been asked to give their comments?

Yes, but there is no guarantee their comments will be listened to.

Will the public have an opportunity to give their views?

At the moment, politicians and others are saying no, but we do hope this will change. PGCC of course are organising closed-door forums where their supporters will express their admiration for the project and the mainstream media will be instructed to report “Penangites support PGCC”. It is a farce.

Has a traffic study been done and what does it say?

Yes, the study has been done but it has not been made public. This again is very disingenuous of the developer: the traffic implications are massive and will affect all Penangites, yet they are refusing to divulge their traffic study? Why? What have they got to hide?

The Pros and the Cons

What will the effect be on traffic?

Obviously massive, but the developer refuses to publish their Traffic Impact Assessment (TIA).

What other adverse consequences will there be?

The racecourse site will disappear under a mass of concrete, steel and glass, with (at the moment) just 26 acres of the 206 acres to be ‘developed’ kept for green space.

Are there hidden costs that the tax-payer will pay to subsidise the developer?

Massive and not even hidden. The road widening necessary in Green Lane, Air Itam Road, Scotland Road and elsewhere will be borne largely or completely by us taxpayers. The building of PORR, so necessary for PGCC, has already involved taxpayers in huge costs, and these will increase. Any subsidies to public transport servicing PGCC will be borne by us. And if there is to be a monorail project servicing PGCC, major costs for that will also be underwritten by us. . Bill for Penangites in direct costs alone – billions of ringgit.

What benefits will Penang get from this project?

The official PGCC brochure claims that PGCC will generate 2000 retail outlets, medical tourism, conference space (MICE), office space, a new performing arts centre (PENPAC), 5 star hotels and service apartments and urban and international schools. They claim this will create 5,000 construction jobs and later 4,000 jobs in hotels, 2,000 jobs in service and health sector, 10,000 jobs in offices, giving a 25% tourism boost. There is no justification provided for the latter claim.

The construction jobs of course will overwhelmingly go to migrant workers.

The PGCC Campaign Group

Who are in this group?

The group is made up of a number of concerned Penang NGOs and individuals. You are welcome to join.

What are the main reasons for objecting to the project?

The project itself, if it goes through, will cause massive social and environmental problems. Siting a large new city on the present racecourse is destroying a valuable land resource ion Penang island, and is asking for major traffic and allied pollution problems. We would argue that there are far better, alternative development choices for the site which would not have such negative social and environmental consequences. Rather, we want projects that protect Penang’s future as sustainable and at least partly green!

The way the project has been planned and announced is also extremely worrying. Once again, a big project is being steamrolled through Penang’s local government with very little transparency, accountability or public debate. The developers refuse to divulge key information, MPPP and the state government seem reluctant to demand any public accountability or organise public hearings. This means none of us have the chance to look in detail at any of the proposals and evidence for the project. Yet it is our future.

What has this group done so far?

We have raised key questions about the project with the developers, the MPPP, the state government and the media. We have helped circulate relevant information to particular groups, and have produced some leaflets and posters on the project. We have distributed postcards to be sent to the CM, calling for his supporting the stopping of this project. We have contributed to websites and have written to the press etc about the project. We will continue to lobby for open and transparent planning of this project, including open public discussion, and will continue to spread information about the project to Penangites, especially on the island, since this project will have a dramatic effect on all of us.

What can I do?

Join us. There are many ways you can help. Give us a call and we can discuss them.

Who do I contact to help?

Contact the PGCC Campaign group secretariat at c/o CAP, 10 Jalan Masjid Negeri, 11600 Penang (Tel: 04-8299511) or at Penang Heritage Trust, 26 Church St, 10200 Penang (Tel: 04-2642631)

Misc.

Why do I not see any adverse reports about this project in the press or on the radio or TV?

We all know that our mainstream Malaysian media operates under constraints. We are not surprised that the reporting on the PGCC, like many other issues, follows a line endorsed by our government. The fact that the reporting on the PGCC project is so lop-sided should tell us that there is something those proposing this project wish to hide: otherwise there would be a decent and proper public airing of the project. Get some alternative angles through internet sites and alternative sources such as Malaysiakini and Aliran. Write to the mainstream press with your views and see if they publish them.

For more alternative information on PGCC, check out the links on our website’s main page.

Remember to tell your friends about our website too!