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QUESTION: MPPP councillor wants to know who are benefiting from Penang's development projects
A PENANG Island Municipal (MPPP) councillor yesterday questioned the purpose behind new development projects in the state.
Councillor Dr Lim Mah Hui wanted to know whether these were intended to create new jobs and overcome a shortage of housing units, or to supply to investors and speculators.
He said at present, the number of housing units had exceeded the total number of households in the state by 20 per cent.
"Therefore, they cannot be meant for the people here. To whom are these new developments being targeted?
"Are they for the locals' benefit or the developers, who are the biggest lobby group in Penang?
"The question now is whether we want sustainable development or uncontrolled development," he said during a symposium organised by Penang Forum on development and good governance, near here.
Because of the global economic downturn, Lim said foreign funds were being channelled into Asia, fuelling a property bubble as people were investing in properties due to the low interest rates.
He said many new properties in the state, especially the high-end ones, were targeted at the rich, Malaysians abroad and foreigners.
As a result of speculations, property prices had continued to increase, driving the average folk in Penang out of the property market.
"The inflation of prices of properties are far higher than the increase in wages.
"With the blanket increase of density to 87 units per acre, land prices will further increase, too.
"With the state government bent on making Penang an international and liveable city, new developments in the state appeared to be 'mega projects'."
Lim cautioned that Penang could risk leaving its locals behind if it became too absorbed in becoming international.
Lim said a restriction on properties could not guarantee that prices would come down.
Instead, the state should consider imposing a premium on high-end developments and concentrate on providing affordable housing for the local population.
He also proposed that the density level be controlled, along with strict enforcement on people eligible for social housing. He wanted non-profit organisations to be involved in matters concerning affordable housing.
"The state has to consider such measures and not rely solely on mortgaging land and selling land reclamation rights.
"Is our state government willing to listen, to be open to suggestions or does it want to be trapped in its own thinking?"
Former MPPP councillor Lim Kah Cheng said although developers' influence was strong, Penang did not rely on them as its main source of income.
"We need to plan properly and make full use of our resources, such as council land that had been left vacant, or rent out at cheap rates."
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