Pulau Jerejak only for shipyard: Penang gov't

GEORGE TOWN: The Penang government will not allow the land where a shipyard is at Pulau Jerejak to be used for any other purposes other than for a shipyard.

Chief Minister Lim Guan Eng said his administration will not allow the 10.52ha site there to be converted for private, commercial or recreational purposes.

He said the land was alienated to Boustead Shipyard Sdn Bhd, a Boustead Heavy Industries Corporation Berhad subsidiary, on a 99-year lease by the previous state government.

He said his administration wanted to preserve Pulau Jerejak and questioned the need for another commercial project there.

"The state government wants to remind you we will not entertain any request to change the land use," he said in a press conference yesterday.

The stand by the Lim administration comes after an advertisement inviting bidders to participate in the sale by expressions of interest (EOI) on the land appeared in a Mandarin language newspaper last week.

According to the advertisement, real estate services company CBRE|WTW is involved in the process and interested bidders have until noon on July 6 to submit their bids.

Checks on the Boustead website meanwhile shows that the shipyard is engaged in shipbuilding, repair and servicing, anchor handling tugs, cargo ships, and other commercial ships.

The island is a former penal and leper colony and is under the spotlight as there are other plans to develop some areas there.

UDA Holdings Bhd in November last year entered into a joint-venture agreement with Q Islands Development (QID) to redevelop Jerejak Rainforest Resort and Spa, and 32.37ha of land surrounding it into a mixed development.