Paramount Property is widening its Penang footprint and moving into affordable housing through a development agreement with the state housing board for a proposed redevelopment in Butterworth. The first phase of the Ujong Batu project will comprise 350 affordable homes under the Rumah MutiaraKu scheme.
The property arm of Paramount Corporation Bhd already runs an integrated township in Batu Kawan, a residential township in Bukit Mertajam and a light industrial park in Bukit Minyak, according to NST. Its subsidiary, Paramount Property (Butterworth) Sdn Bhd, signed the agreement with Lembaga Perumahan Negeri Pulau Pinang (LPNPP) for the 6.19-hectare site in Seberang Perai Utara.
The Penang state government’s own publication, Buletin Mutiara, reported that the redevelopment covers Kampung Ujong Batu and will be carried out in phases. Penang Chief Minister Chow Kon Yeow said the project is an important step in renewing Butterworth’s built environment without setting aside the welfare of residents in the area.
Chow said eligible existing residents will be offered homes free of charge under the state’s social justice approach. He said the state intends to recover only the land cost carried by private developers on such projects, without adding a profit margin to social housing.
The redevelopment also supports the Penang2030 vision, which targets 220,000 housing units for Penang residents, the publication noted. LPNPP opened three requests for proposals for the site between November 2024 and February 2026, and none of them drew interest.
The state executive council on 22 April 2026 and LPNPP’s procurement board on 7 May 2026 then agreed to proceed through direct negotiation. Paramount Property came forward with its interest after that decision.
Paramount Corporation group chief executive officer Jeffrey Chew said the collaboration reflected the group’s commitment to developing homes and communities that respond to changing needs. “We believe that property development is ultimately about improving lives and creating better places for people to live,” he said.
Chew said the group was pleased to work with LPNPP and to contribute its development expertise towards the state’s housing aspirations. He described the proposed redevelopment as a chance to turn that principle into a project that brings long-term benefit to the local community.
Paramount Property’s existing Penang developments include Utropolis Batu Kawan, an integrated project combining residential, commercial, retail and education components, Paramount Embun Hills in Bukit Mertajam and Paramount Palmera Industrial Park in Bukit Minyak.
Its pipeline includes a proposed mixed development at Bandar Cassia, Batu Kawan, following an agreement to acquire 7.7ha of freehold land from the Penang Development Corporation in 2025. That project carries an estimated gross development value of RM744 million and is planned to include serviced apartments, semi-detached townhouses and shop offices.
The Ujong Batu redevelopment will proceed subject to planning requirements and regulatory approvals. Chow said the signing is an initial step, with development plans and planning permission still to be prepared and obtained.
Details on the development value, later phases and timeline for the Butterworth project have not been disclosed.
