BUTTERWORTH: The Ministry of Transport will present a proposal to the Cabinet seeking a 10-year extension for Malaysia Holdings Berhad’s sugar refinery land lease in Perai.
Transport Minister Anthony Loke confirmed the refinery currently operates on land leased from the Railway Assets Corporation and will not face immediate closure or relocation.
He stated that Kampung Manis, where the factory is located, will undergo redevelopment with squatters receiving free housing due to poor living conditions.
“There is no issue of the refinery being closed immediately, and it will take at least 10 years to relocate,“ Loke told reporters after launching the Seberang Jaya Perkeso Dialysis Centre.
He emphasized the need for reasonable transition time while ensuring cooperation from MSM for future area development.
The original lease granted in 1964 expired last year, with the refinery receiving phased relocation timing as redevelopment progresses.
Loke added that Kampung Manis redevelopment aligns with the MADANI Government’s vision and Prime Minister Datuk Seri Anwar Ibrahim’s housing aspirations.
Federal Land Development Authority chairman Datuk Seri Ahmad Shabery Cheek previously announced discussions with Penang government and Railway Assets Corporation regarding the lease extension.
MSM maintains responsibility for supplying 24,000 tonnes monthly and managing Malaysia’s 32,000-tonne buffer stock of raw and refined sugar. – Bernama
