A plot of land in Teluk Kumbar, earmarked for affordable housing for the Malays, has not seen a single unit being built since a federal-linked company obtained approval for the development project in 2005.

About two (2.26) out of 114 acres of first grade land had been reserved for the development of 235 units of low cost homes, at 700 sq ft and cost RM35,000 each, said Penang Malay Congress (PMC), a local based NGO.

NONE PMC president Rahmad Isahak questioned why there has been no development within the area, located south of the island, despite the intention to do so seven years ago.

Previously owned by Island and Peninsular Development (I & P), a subsidiary of the Finance Ministry, the land was approved for development in 2005, Rahmad claimed.

Two years later, Malaysian Resources Corporation Berhad inked a Turnkey Development deal with a federal linked company - Perlaburan Hartanah Bumiputera Berhad (PHBB) - to "develop residential units ranging from high end apartments and landed units to affordable housing in Penang Island".

Rahmad pointed out that the federal government formed the PHBB to help Penang Malays purchase affordable housing but until today, the plot of land remained vacant.

"What are we waiting for? There is public money involved here and the houses are for the rakyat with low income. PHBB is supposed to be helping Penang Malays but it has failed to do so until today," Rahmad lamented.

Special vehicle company appointed

It is learnt that the three residential developments were planned in Pengkalan Weld, Gelugor and Teluk Kumbar with the estimated Gross Development Value of the entire project being RM500 million.

PHBB acquired six acres of land along Jalan Udini/Gelugor and another acre in Weld Quay from Tenaga Nasional Berhad, said Rahmad.

The Teluk Kumbar parcel came with an approved development plan, but instead of working on it, PHBB appointed a special vehicle company - Mutiara Premier Sdn Bhd - to carry out the project, he added.

"Mutiara Premier then set out to amend the approved lay-out plan previously obtained by I & P.

"The company got its plan okayed on Jan 26, 2010. This plan, which has been extended twice by Mutiara Premier, is valid until January next year," said Rahmad.

The businessman also took Second Finance Minister Nor Mohamed Yakcop to task for saying that the land would be developed by 2007, "with a selection of affordable homes and commercial lots on offer".

Land acquired below market price

He was referring to an Oct 19, 2006 report in the New Straits Times quoting Nor Mohamed as saying that PHBB had then purchased the three properties for a total of RM116.5 million.

NONE Nor Mohamed ( right ) had been quoted as stating that the land was acquired below market price and developers would be appointed in the first quarter of 2007 to construct the units.

"It appears that the company is not serious in developing the land for affordable housing. I checked with the State Housing Department and was told that they did not apply for the name list (of those who applied for the housing)," he said.

"Are they waiting to develop this land only if the BN regains Penang in the coming 13th general election?" he queried, asking further if this is Umno's agenda to delay the plans.

"They should be reminded that affordable housing should not be used as a political ploy but should be carried out as pledged for the benefit of the people, especially the Malays," Rahmad added.

"Whoever acquired the land or runs the government, must build affordable housing on this plot which has been earmarked for the purpose".

When asked, former Penang deputy chief minister Hilmi Yahya said he was uncertain of the status of the land, adding that he would find out more about the matter.

Hilmi, who is Teluk Bahang assemblyperson, said he was worried that the issue would affect BN’s image.

“I remembers in 2008, they asked me to launch the project but I declined because I was afraid that it would fail to take off,” Hilmi told the media when met at the Penang state legislative assembly today.

Affordable housing for Malays have become one of the major issues in Penang, where BN leaders often hit out at the Pakatan Rakyat state government for not providing such homes for the communities.

Chief Minister Lim Guan Eng, however, continue to insist that Penang has been building 12,000 units of affordable homes - 4,000 units directly by the state and the remaining 8,000 by the private sector - since 2008.