Penang Chief Minister Chow Kon Yeow has confirmed that all negotiations between the state government and Waterfall Cafe have collapsed, ending a dispute that stretched back to 1990.
In a statement issued today, Chow said the state had engaged all relevant parties repeatedly in an effort to reach a fair and practical resolution, but every channel of negotiation ultimately failed.
“All active negotiation channels that were opened failed to reach a resolution,” he said.
The cafe, located near the entrance of the Botanic Gardens, was demolished by authorities earlier today.
According to Chow, all notices directing the premises to be vacated, issued by the Northeast district land administrator, including an eviction notice on 4 January 2024, were not complied with. Outstanding rental arrears remain unpaid.
Despite the arrears, the state government, through the Northeast District and Land Office (PDTTL), offered Waterfall Cafe several alternative options to relocate and continue operations. These included two units at the multi-storey car park building, the commercial plaza associated with the future Penang Hill cable car project, and a temporary site throughout the construction period.
Chow said the cafe owners rejected the offers without clear justification.
He also noted that during a coordination meeting on 19 June 2023, chaired by the then Deputy Chief Minister II P. Ramasamy, Waterfall Cafe had agreed to relocate and settle its outstanding arrears, a commitment that was never fulfilled.
The first eviction notice was issued on 4 January 2024, followed by several rounds of discussions from 19 February 2024. The final notice was issued on 15 April 2026 before enforcement action was carried out today.
Source: Malay Mail
