The Ministry of Transport (MOT) has announced plans to seek a 10-year extension of the land lease for Malaysia Holdings Berhad’s (MSM) sugar refinery located in Perai. The refinery operates on land owned by the Railway Assets Corporation (RAC), and the proposed extension aims to provide MSM with ample time to plan its long-term operations without the risk of immediate closure or relocation.
Transport Minister Anthony Loke clarified that the refinery will continue its operations for the foreseeable future, despite the surrounding area, Kampung Manis, being earmarked for redevelopment. This revitalization project includes plans to improve living conditions by providing free housing to residents currently living in substandard environments. “There is no immediate plan to shut down the refinery.
If relocation becomes necessary, it would take at least 10 years. We believe it is reasonable to grant the refinery adequate time, but they must also cooperate with us in this process,” said Loke during a press briefing after officiating the opening of the Seberang Jaya Perkeso Dialysis Centre at the Penang Perkeso Office.
The Transport Ministry emphasized that a permanent refusal by MSM to consider relocation could hinder the redevelopment efforts of Kampung Manis. The extension will therefore allow both parties to collaborate on a feasible timeline that balances the refinery’s operational needs and the government’s urban revitalization goals.
This move reassures stakeholders and the public that MSM’s sugar refinery will remain a key player in the Malaysian sugar industry while the government works towards modernizing the area to benefit the community.
