There are two major headaches - eviction of villagers - from their kampongs in Penang which the state government must resolve soon or face a backlash come the next general election.

Bayan Lepas and Tanjung Tokong are two controversial areas which are currently undergoing massive development, posing a big problem for the state, developers and residents.

NONE In a move to resolve the issue by next month, the Penang government has issued a warning that there should be no eviction exercise, especially in Bayan Lepas, during its on-going negotiations with the developer.

Deputy Chief Minister I Mansor Othman said he has been informed that the developer, KL Metro, plans to attempt to have its land in Kampung Teluk Kumbar vacated for the third time on Monday.

KL Metro had attempted to have its land vacated on Nov 15 and 30, but put off the exercise following pleas from the residents for a better compensation package.

Mansor said the project will affect about 80 residents or 15 families who have lived on the 1.6ha land area for a century.

Of the 15, six are Chinese and the other nine are Malay families, he added.

He insisted that the state was not against development in Penang, but urged that residents who live on the affected land, despite being on a temporary licence, should be compensated reasonably before they are vacated.

“We remind them (developer) not to carry out any eviction as two big celebrations are coming, Christmas and Chinese New Year,” he told reporters in Komtar today.

“We are still negotiating with the developer, so it is only right that it does not carry out any eviction now,” he added.

“It’s true that eventually we cannot stop the developer but we can decide not to approve the development in the area; the state has every right to do that.”

The land in Kampung Teluk Kumbar has been earmarked for a five-star hotel, scheduled for completion by 2013 or 2014.

RM20,000 compensation package turned down

It is learnt that the residents had earlier turned down a RM20,000 compensation package, asking instead for a medium-low-cost house for each family.

KL Metro project director Wong Fok Ten told reporters that he would discuss the matter with his directors and lawyers, adding that four families had already accepted the firm’s offer.

Meanwhile, Mansor said the state has decided to resolve the ongoing problem in Tanjong Tokong , another village mostly occupied by the Malay community, by January next year.

He added that the state had set up a committee comprising the developer, UDA Holdings, and affected residents so that an amicable and reasonable package can be agreed to soon.

This project, situated on the island’s main tourist belt, and comprising low- and medium-cost flats, apartments, condominiums and commercial buildings, affects about 235 families or 1,043 people, who have all this while lived there using temporary licences.

“We need to find a solution as this is already an old issue and will be exploited by certain parties to put the state government in a bad light,” he said.

“We have been negotiating with UDA, they have been briefing us on the area, and have provided transit homes for the affected villages.

However, there are some who do not agree to the compensation offered,” he added.

UDA Holdings chairperson Nur Jazlan Mohammad had earlier said that he was working with the state to settle the issue of relocation of the residents.

He added that the majority of Tanjung Tokong residents had agreed to move, but “a few have conflicting demands”.

In September last year, UDA had announced plans to construct the buildings with a sales value of between RM800 million and RM1 billion at the village.

However, this was met with fierce objections by the villagers, who claim that they want the area to remain a heritage site for Penang.