[UPDATED] PSI mega project: Penang agrees to build just one island instead of three

KUALA LUMPUR – The Penang government has backed down from the Penang South Islands (PSI) mega reclamation project, agreeing to only one man-made island instead of three.

The turnabout came at the urging of Prime Minister Datuk Seri Anwar Ibrahim and the federal government’s commitment to provide additional funds to expedite the development of the Light Rail Transit (LRT) system in the state.

Chief Minister Chow Kon Yeow said the revised PSI project will be a 2,300-acre island south of the Penang International Airport runway, reported Free Malaysia Today.

The original three-island PSI project would amount to a total of 4,500 acres.

He told reporters in George Town that the revised project involving Island A (Silicon Island) will take some 20 years to complete and only affects 115 fishermen.

In response, Sahabat Alam Malaysia president Meenakshi Raman said scaling down the project is still unacceptable as developing the single island will affect fish spawning grounds, mudflats, coral reefs and shrimp migration

“It will involve large volumes of sand for the reclamation from Penang or Perak waters, causing more damage,” she said in a statement. 

“There is no need for the (PSI) project at all since the funding for the LRT is already promised by the federal government. There is absolutely no justification and we do have 12,000ha in Seberang Prai (for development) as admitted by the chief minister himself.”

Last week, Anwar said the funds for the LRT in Penang would comprise federal grants and loans as well as urged the state government to scale down the controversial PSI project.

Penang’s civil society groups have largely been at odds with the state over the PSI project, with some asking for Anwar’s intervention to scrap it.

Following that, Chow appealed for federal funds to fund the proposed Juru-Sg Dua elevated highway, saying it would alleviate outstation traffic along the North-South Expressway that had spilt into Seberang Prai. – The Vibes, May 11, 2023