BUTTERWORTH, The Ministry of Transport (MOT) will present to the Cabinet a proposal to extend by 10 years the land lease for MSM Malaysia Holdings Bhd’s sugar refinery in Perai.
Transport Minister Anthony Loke: There is no issue of the refinery being closed immediately, and it will take at least 10 years to relocate. I believe it is reasonable for the refinery to be given time, but they must also cooperate with us.
Transport Minister Anthony Loke said the refinery, which operates on land owned by the Railway Assets Corporation (RAC), will not be forced to shut down or move immediately. Instead, the extension would give MSM sufficient time to plan its relocation in line with redevelopment plans for Kampung Manis, where the plant is located.
“The factory will not close right away. It will take at least 10 years to relocate, and I think this is a fair period. But MSM must also cooperate with us because if it stays permanently, the redevelopment of the area cannot move forward,” he told reporters after launching the Seberang Jaya Perkeso Dialysis Centre on Saturday.
Loke explained that the refinery’s lease, first granted in 1964, expired last year. The extension would allow operations to continue while the government carries out phased redevelopment of Kampung Manis, which includes providing free housing for squatters in the area.
He added that the plan aligns with the Madani government’s vision and Prime Minister Datuk Seri Anwar Ibrahim’s aim to improve housing for all communities.
On Sept 17, Felda chairman Datuk Seri Ahmad Shabery Cheek said he would engage the Penang government and RAC to discuss the lease extension for MSM, the operator of the country’s largest sugar refinery.
MSM plays a key role in ensuring Malaysia’s sugar security, supplying 24,000 tonnes monthly and maintaining a buffer stock of 32,000 tonnes of raw and refined sugar for the local market.
