AFTER more than seven decades, the residents of Kampung Manis in Butterworth are set to move into a new settlement, as the area they currently occupy will be redeveloped under the 'Rumah Mutiaraku' (RMKu) project.
This is a collaboration between the Railway Assets Corporation (RAC), the Penang State Government, and a developer.
State Executive Councillor for Housing and Environment, Datuk Seri S. Sundarajoo, said the 174 families still residing on the land will each receive a residential unit free of charge as a replacement home.
He said the units offered are not the typical low-cost housing; instead, they are 850-square-foot units, valued at RM250,000 by the Penang State Housing Board (LPNPP).
“This is truly wonderful news for the residents of Kampung Manis.
“Typically, replacement housing consists of low-cost units measuring 650 square feet.
“However, for the residents of Kampung Manis, the replacement units offered are 850 square feet in size.
“While the state government—through the LPNPP—has set the price at RM250,000, the market value for these units is estimated to be between RM350,000 and RM400,000.
“These units are being provided free of charge to the 174 families currently living in the area,” he said.
He said this during the signing ceremony and the presentation of Letters of Intent to RMKu beneficiaries, aimed at facilitating the clearing of the site and the relocation of the Kampung Manis residents.
Also present were Chief Minister Chow Kon Yeow and RAC Chief Executive Officer Datuk Azhar Ahmad.
Sundarajoo noted that 53 families—who have a historical connection to Kampung Manis but are no longer permanent residents of the area—will also be allowed to acquire one of these residential units. “The state government is offering them similar housing for RM150,000 through a rent-to-own scheme.
“In total, approximately 227 families will receive replacement homes through the redevelopment of Kampung Manis,” he said.
He stated that residents who need to relocate temporarily to make way for the construction work will receive a monthly rental subsidy of RM700 from the developer until the new homes are completed.
“Residents are required to find their own rental accommodation, and the RM700 subsidy will be provided until the new homes are ready,” he said.
Sundarajoo noted that the developer has been given 24 months from the date of plan approval to complete the project.
“Our agreement with the developer stipulates that the buildings must be completed within 24 months from the date the plans are approved.
“To ensure that construction proceeds smoothly and to prevent any accidents at the project site, we have requested that residents relocate temporarily well in advance,” he said.
Azhar clarified that the sugar refinery owned by MSM Malaysia Holdings Berhad (MSM) in the area is not part of the Kampung Manis redevelopment project.
Consequently, the factory will continue its operations, with a 15-year lease agreement set to be signed between the two parties in the near future. – October 19, 2026
