More than 70 years after families first settled at Kampung Manis in Butterworth, a resettlement agreement has opened the way for 174 households to receive free replacement homes.
State Housing and Environment Committee chairman Datuk Seri S. Sundarajoo said the 174 families still living on the site will each receive an 850 sq ft unit at no cost, larger than the 650 sq ft units normally offered as low-cost replacement housing. The homes, according to NST, are valued at RM350,000 to RM400,000 at market prices.
Another 53 families with historical ties to Kampung Manis but who no longer live there permanently can buy similar units for RM150,000 under a rent-to-own scheme, taking the total covered by the resettlement to 227 households.
The Railway Assets Corporation (RAC) and the Penang State Housing Board (LPNPP) sealed the agreement by handing site clearance consent documents to residents, closing a resettlement issue that had run for more than 70 years, Malay Mail reported.
The redevelopment covers 1.61 hectares of RAC-owned railway land at parts of Lot 286, Lot 65 and Lot 67. Plans list 338 residential units, made up of 174 replacement homes from RAC and 53 allocated by LPNPP, alongside condominiums, a commercial centre, drive-through outlets, serviced apartments, a swimming pool, a playground and a gymnasium.
Chief Minister Chow Kon Yeow and RAC chief executive officer Datuk Azhar Ahmad attended the signing ceremony. Chow said the rent-to-own option gives households a path to ownership when financing remains the main barrier, and tied the scheme to Strategic Initiative A1 of Penang2030. Penang had provided 172,550 affordable units as of 31 March, or 78.43 per cent of its 220,000 target for 2030, he said.
Residents who must move out temporarily to make way for construction will receive RM700 a month in rental assistance from the developer until their new homes are ready. They will arrange their own rental accommodation.
The developer has 24 months from the date of plan approval to complete the project. Work is expected to start by the end of this year or early next year, subject to approval of the development plans, and residents were asked to move out early to keep construction on schedule and cut accident risks at the site.
RAC and LPNPP began the partnership with a memorandum of agreement on 11 Nov 2024, followed by a project development agreement signed on 11 June with Rivanis Ventures Sdn Bhd. A census of Kampung Manis residents has been running since 2024 to identify eligible recipients, with resettlement carried out in phases.
