MPPP can reject renewals, says former town planner

GEORGE TOWN: The Penang Municipal Council (MPPP) can reject the renewals of planning permission for special projects, according to a former town planning department director.

Khoo Boo Soon, a registered urban planner who opted for early retirement in March 2010, said the Penang Island Structure Plan 2020 did not specify that such projects should be given automatic renewals.

He said the term “special project” as indicated in the structure plan was not meant to be used as a prerequisite to grant permission for development above 76m or any other hillslope development.

He said the term was not meant to be an “escape clause” for the state.

“Although certain projects fall under the special project category, the structure plan does not say anything about automatic renewals or automatic approvals,” Khoo told a press conference yesterday.

He said, as the guidelines were very clear, he did not understand why MPPP and state representatives were saying that their hands were tied.

“They are leading the public to believe that they have no powers to disregard what has previously been approved. The fact is, they have every right to reject those renewals.

“They should come out and tell the people the truth,” Khoo said, adding that he was speaking out as he felt the council and the state owed the public an explanation on the hillslope issue.

MPPP president Datuk Patahiyah Ismail said last month that 19 hillslope approvals that exceeded the 76m-height limit could not be rejected based on height as they were classified “special projects”.

Hillslope projects in Penang have come under intense scrutiny in recent months, with various groups staging protests against several of them.

Khoo said the structure plan was initially vague on the definition of special projects but the MPPP and state planners drew up guidelines to define the term in 2009.

The guidelines defined them as major infrastructure or government projects like roads, dams and telecommunication stations. - The Star

PDC’s new plan to attract MNCs: Build and lease

GEORGE TOWN, Aug 3 — As the global economy grows more and more uncertain, the last thing the Penang Development Corporation (PDC) needed was a multinational corporation telling them it was considering moving its operations out of Penang. But that was the situation they found themselves in when Malaysian Automotive Lighting (Alma) told them its plans earlier this year. Alma is the Penang branch of Germanybased AL-Automotive Lighting, a sub-brand of Magneti Marelli, itself a subsidiary of the Fiat Group.

Alma is a key player in the local automotive lighting industry, producing all of Proton’s headlamps and 85 per cent of its cars’ rear lamps, as well as headlamps for Perodua’s Alza and Viva models. Half of the company’s business involves Japanese carmakers such as Suzuki, Honda, Mitsubishi and Mazda.

Alma’s customer base continues to grow, and so has the company. In fact, it has grown too big for Penang. Its present plant in Bayan Lepas which has 960 employees will not be able to cope with the growing global demand. “Our business plan is showing an increase in volume and customers,” said Mario Corsi, managing director of Alma, “and this plant is becoming too small.” And even if business weren’t great for the company, it would still have to move out; its building is actually owned by Bosch, and Bosch said it wanted it back. Alma isn’t the only company looking to grow. Bosch is growing as well.

Then the Fiat Group instructed the company not to buy new land or build its own plant. “Our business is not real estate,” said Corsi.

Alma had to find investors willing to buy land and build a new plant to rent to Alma for the long term. Their options included Thailand, where their Ford customers are based; China, where Automotive Lighting already has one plant and another on the way; and Kuala Lumpur, where it can be closer to Proton and Perodua. Furthermore, Penang labour, according to Corsi, is relatively more expensive compared to China or Thailand. While Alma searched for potential suitors, it was already busy designing the new plant. The move, like it or not, was happening.

The new plant under construction. — Picture courtesy of Penang Development Corporation

And that might have been the end of Alma’s involvement in Penang, if the PDC had not raised its hand and said, “We can do it for you.” And that was how the PDC’s build-and-lease programme was born.

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The PDC had never done anything like this before. Normally, it sells land to companies. But Alma didn’t want to spend money on land and buildings anymore — it wanted to pour resources into production and R&D.

That’s where build-and-lease came in. It’s a simple idea: the PDC builds the plant according to the client’s specifications, then leases it to the client for a number of years. The client doesn’t have to pay millions for land and a plant (just the rent), and the PDC gets to ensure the client remains in Penang. Everybody wins.

All of this was dependent on the PDC’s own skills and technical knowledge, which the PDC Consultancy (PDCC, a subsidiary of PDC) chairperson Iskandar Basha assures it has plenty of. “The PDC and PDCC have a wealth of knowledge and resources in terms of land and financial ability to cater to the needs of the customer. We can actually build according to the specification of the customer,” he said. “And for this, they are prepared to pay a fair rate, which in turn gives us a very handsome return.”

A “handsome return” may sound a little strange for the PDC, which, as a state agency, rarely ventures into profit-making enterprises, a recent exception being its Bayan Mutiara luxury properties. But Iskandar sees a potentially strong revenue stream in the build-and- lease programme. The PDC can see a good annuity return over the long term, while still holding onto the land. “It gives the PDC a very good return on investment because the rate is packed in such a way that it adjusts to inflation.”

But Iskandar said that profit isn’t why they are doing this. “Profit is a return that we look for in the risk that we are taking. But we are not embarking into this because of profit. We want to facilitate industries to come into Penang in a manner attractive to them.”

A key contributor to the programme’s success, according to Iskandar, was how quickly a deal was done. Discussions with Alma began in February, and an agreement was locked in place the following month. It was the first demonstration of the PDCC’s ability to fast-track and deliver something quickly. As Iskandar said, “Time kills deals.”

Iskandar credits Chief Minister Lim Guan Eng, also the chairperson of the PDC, for pushing the agency in this direction. “The PDC had the skills all along,” Iskandar said. “It was at (Lim’s) urging that we began exploring options like this and finding workable solutions. He encouraged us to see how we can work with and facilitate the industries, and at the same time gain something out of it.”

The PDC can indeed stand to profit from this new venture. After the agreement with Alma was announced, several companies expressed an interest in exploring build-and-lease options with the PDC. Motorola has just signed a build-and-lease agreement for its Mobility division worth close to RM100 million in Bayan Lepas. But the PDCC is being very selective about who they work with. It’s not about whether the company is local or multinational, Iskandar explained, noting at the same time that the PDCC’s evaluation criteria are very stringent. Among the factors considered are the market acceptance of the company’s product, the company’s market share, profitability, its long-term R&D investments and its current balance sheet.

Artist’s rendition of the new Alma plant in Batu Kawan. — Picture courtesy of Alma

And while getting the PDCC to build a plant for you based on your own designs is an appealing idea, there are limits to how unique or specialised it can be. While calculating the cost of a project, the PDCC would factor in retrofitting cost, which is the cost of retrofitting the plant so that another company can use it once the lease is up. “If the degree of uniqueness is anything close to about 70- 80 per cent, I think we would stay out.”

If the build-and-lease programme does become a successful revenue generator over the long term, an industrial real estate investment trust (Reit) is on the cards. “The Reit helps unlock value and has some advantages in terms of tax breaks. It also gives us a possibility to improve our liquidity, so that we can use the funds to do more build-and-lease and inject them back into the Reit.”

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On March 16, Alma and the PDC signed an RM117 million agreement to build an RM70 million facility in Batu Kawan, on Penang’s mainland. Alma will lease the facility for 20 years, with a renewal option for an additional 10. The new plant, scheduled to be ready by the beginning of 2013, is 33 per cent larger than its present facility and will employ 1,200 people. More importantly, Alma gets to stay in Penang.

The real winners, both Iskandar and Corsi say, are the local talent. “Our skills didn’t get created overnight,” said Iskandar. “Here’s an opportunity for us to tap into the expertise and the experience that the PDC has built over the years. And the people who gain are the consulting firms, civil and mechanical engineers, the contractors and the architects.” “We don’t want to lose the expertise of our people here,” said Alma’s Corsi. “A lot of them have 20 years’ experience with us. Our major asset in this company is our people.” Everybody wins. — Penang Monthly

* This article is taken from the August 2012 issue of Penang Monthly (www.penangmonthly.com), out now at all good bookshops and newsagents.

重发拒山坡高楼信件引混淆 芭堤雅致歉

（槟城1日讯）槟岛市政局主席芭堤雅透露，虽然在槟州结构蓝图中，允许“特别计划”在山坡地段进行，但在海拔超过76米或250尺，斜度25度的山坡上，却只能进行有限的发展，以及也必须实施更严厉的监管，以确保有关发展符合遵守州政府所拟定山坡发展指南，并且也必须提呈环境评估报告及获得州策划委员会的批准。

不符环境评估批准条例

她进一步解释，虽然新港一项22层楼高的小山坡发展计划是属于“特别计划”，可是却不符合“特别计划”的定义，即（1）没有获槟州风险地段管理委员会批准地质报告、（2）未持没有地势图报告、（3）没有遵守山坡地段发展指南、（4）发展建议申请不符合环境评估批准的条例。

她说，槟岛市政局于今年7月12日已致函新港山坡发展计划的发展商，通知该局于今年6月19日已否决有关的计划，并列明否决的5大理由，但由于有关信件过于“简单”，没有斜坡进一步的解释，所以已引起一些混淆，以及也造成一些人士的误解。她指出，在这种情况下，该局已取消于7月12日的信件，于今日（8月1日）寄发另一信件予有关的发展商。她强调，该局较早所寄发的信件，并没有任何的错误，只是没有作进一步的解释。

都将接获市局重发信件

她继透露，上述山坡发展计划的发展商及反对者都将接获该局重新寄发的信件。她对于该局较早寄发信件中所使用词句所引起的混淆，深感抱歉。“新港山坡发展计划虽然已被否决，发展商可在30天内向上诉局提出上诉，而如果上诉得直，有关发展计划已遵守一切所规定的条例，发展商在重新提出申请时，我们也将重新处理这项申请。”由于有关发展商已向上诉局提出上诉，所以她不愿对此计划作进一步的置评。她是于周三在一项新闻发布会上，澄清时如此指出。- 光华

张瀚中：避免双重标准 山坡计划喊停是好事

（槟城1日讯）在槟州民政党召开记者会抨击槟州政府选择性批准新港双威城山坡发展计划的当儿，另一边槟岛市局主席芭提雅即公布首长已喊停该计划,槟州民政党宣传局主任张瀚中事后表示，以正面角度看待，喊停是好事！截至截稿时间，由于无法联络上民政党槟州地方政府事务局主任郑两明，张瀚中受询时表示，这项喊停之前并无人知晓，但首长喊停是好事，总不能出现双重标准，槟州结构大蓝图是最终标准，但要避免重犯错误。在较早前的记者会上，郑两明针对新港两项山坡发展计划，抨击槟州政府双重制度，选择性地批准“心头好”发展商。

他说，今年在新港两项违反槟州结构大蓝图规定，即超过海拔250尺（76公尺）或斜度超过25度的双威城及Palmex山坡计划中，却有不一样的“命运”，双威城计划已经获批，但Palmex计划被拒绝。“今年2月21日获批的双威城计划（Lot 14345），将新建14栋高级公寓，分别9至18层楼高，92个三层楼别墅单位，及两个4、5层楼高的俱乐部单位，占地80.9英亩，倾斜度23至35度。”他补充，此计划是基于槟州结构大蓝图中的“特别计划”（Projek Istimewa）被批准，然而“特别计划”是给予特殊的山坡发展计划如公共设施等，绝不是作为商业、住宅等发展。

他说，据槟岛市政局信函了解，只有1栋22层楼公寓的Palmex计划（Lot 14317），是抵触槟州结构大蓝图中DK3及DSU 10 L1政策，基于海拔250尺以上及斜度超过25度，兴建有关房屋及商业计划，以及灾难高风险区，于6月19日被拒。他因而不解，同样违反山坡发展禁令、涉及更大面积的双威城计划竟然获批准，但Palmex计划却被拒绝。他认为这是对民不公平的决定，州政府采用双重制度，若Palmex计划不被批准，双威城计划同样应该被拒绝，不容许歧视性质的制度。

他望州政府别再归咎于前朝政府，他透露，双威城计划发展商是于2009年以非常低的价格买下山坡地，根据2007年所定下的槟州结构大蓝图，当时猫政府就不该批准了。“州政府也不该置之当地居民不理，居民对此发展计划上诉的同时，面对损失及担心，再来，若双威城计划造成灾难发生，谁要承担？我们要求州政府立刻‘收回成命’，取回双威城计划准证。”郑两明是于周二早在民政党总部召开记者会时，如是指出。出席者包括宣传局主任张瀚中、青年团槟州副团长陈嘉亮及秘书曾丽施。- 光华

MPPP has wide powers, says Lakhbir

GEORGE TOWN: The Penang Municipal Council (MPPP) has wide powers to approve, reject, revoke or modify planning permission and building plan applications, said former senior local government employee Datuk Lakhbir Singh Chahl.

He said the Town and Country Planning Act and Street, Drainage and Building Act empowered the council to define uses of land and buildings while also compelling compliance by developers.

“The laws clearly state that the council shall take into consideration matters that in its opinion are ‘expedient or necessary for proper planning’.

“If the proposed development is located in an area where no local plan exists, the owners of the neighbouring lands have a right to object to the application and to state their grounds of objection.

“The local planning authority can even request that the applicant submit a development proposal report with details such as the concept, justification and analysis of social implications,” he said.

Lakhbir started his career as Penang’s Rural District Council secretary in 1968. His last post was as MPPP secretary. He was also director of the first Penang Island Structure Plan Committee.

On June 15, MPPP president Datuk Patahiyah Ismail said there had been no new approval for hillslope development projects on the island since Pakatan Rakyat came into power in 2008.

She said 19 “special projects” were approved after 2008 but the planning permission for these projects were granted in 1996 under the Penang Structure Plan 2007.

She said the developer could renew it annually up to five times.

Lakhbir, who is a lawyer, said an approved planning permission was valid for a year and the council was under “no obligation” to renew the application for an extension of the planning permission if within that time, the development had not commenced in the manner specified.

“The local planning authority is under no compulsion to automatically approve any application for extension or renewal of a plan approved,” he said.

Penang municipal councillor Dr Lim Mah Hui said there should never be any automatic renewal of planning permission that had lapsed.

“The council must review the entire project every time a renewal of the planning permission is applied for,” he said.

Former MPPP councillor Lim Kah Cheng said she would address public grievances in relation to hillslope and high-density development at a dialogue with Chief Minister Lim Guan Eng on Saturday.

The dialogue will be held at the Caring Society Complex from 2pm to 5pm. Admission is free. - The Star

成隆机构槟大展拳脚 并购中路4黄金地

(槟城31日讯)继成功入主“峇央珍珠”（Bayan Mutiara）百依格黄金地以发展“槟城世界城”后，吉隆坡上市公司“成隆机构”（DIJACOR，5401，主板产业组）在槟城继续大展拳脚，将势力“伸入”乔治市中路，据称已成功并购4块总面积高达逾2万平方尺贵地，以发展为双栋大楼的酒店公寓。
与义香饼家合作或触礁
在中路门牌匾216号的“义香饼家”所在产业地，即已成为成隆机构拟同时收购的毗连地皮，以为双栋大楼制造最佳的发展面积，在义香毗邻的4块地已陆续落入成隆机构手中后，对方也在数月前开始与义香接洽，向对方开出条件，以便能最终完成并购计划，然而消息说迄今义香对计划兴趣缺缺，双方合作或触礁。
据了解，在中路已成为成隆机构囊中物的4大连接地皮分别依序是义香饼家毗邻的前“江南人家”餐馆洋楼建筑、一片已夷平的空地、现尚有一栋旧式洋楼所在地以及另一片毗邻空地。上述已并购的地分别深50公尺，长150公尺，相等于2万4750平方尺。
由于中路已获准高楼高密度发展，使到成隆机构的上述高楼发展计划将在新规定下无阻通过。成隆机构为一家上市公司，公司总执行长丹斯里陈志成也是成功集团首脑丹斯里陈志远胞弟，而成隆机构是本地玮力产业（Ivory Properties）的财务伙伴，在其屋业发展中都会出现Dijaya字眼，比如Island Resorts公寓计划等。- 光

Real estate back in favour

It’s in demand again with signs of US housing market bottoming out

LONDON: Treated by many as a pariah after the US subprime collapse triggered the 2007 global financial crisis, real estate is increasingly bouncing back with insurance, pension and sovereign wealth funds.

The evaporation of interest rates on high-quality government bonds is encouraging asset managers to look again at prime real estate properties and stocks, where they find returns far outshooting socalled “safe” sovereigns.

Sovereign wealth funds are a US$4 trillion business and pension funds cover more than US$30 trillion, so even a small shift could move billions away from lower-yielding and more volatile assets.

Top-of-the-crop commercial and residential properties from London to Bangkok are in demand and there are signs of a bottoming out in the US housing market, prompting major investors to buy foreclosed homes to rent.

Comeback: Interest in real estate has returned, as can be seen from the housing front in New York to Paris. Prime property in major cities has seen its strongest growth since 2010 in the second quarter. – Reuters

A sign of increasing interest in the sector can be seen in real estate funds, which have attracted more fresh money than other sectors this year, according to fundtracker EPFR Global.

Andrew Economos, head of sovereign and institutional strategy for JP Morgan Asset Management in Asia, says sovereign wealth funds are particularly active.

“Sovereign wealth funds are looking for positive yields and they are finding anywhere between 5% and 7% in real estate. They are getting yield on purchase as well as capital appreciation,” he said.

“They are diversifying across real estate into commercial, trophy properties as well as REITs (real estate investment trusts),” he said. REITs are securities sold like a stock and which invest in real estate properties or mortgages.

In one of the most recent high-end deals, Norway's sovereign wealth fund teamed up last month with Italian insurance giant Assicurazioni Generali to manage prime office and retail properties worth 550 million euros in central Paris.

Norway's sovereign wealth fund NBIM, which holds assets worth about 3.6 trillion Norwegian crowns (US$598.93bil), plans to raise real estate assets to as much as 5% of its overall portfolio from 0.3% at the end of March.

China's US$482bil sovereign wealth fund Investment Corp said on Wednesday this was one of the sectors it was now focusing on.

One way that investors are tapping the real estate market is through stocks and real estate investment trusts, which offer substantially higher dividend yields than sovereigns in areas spanning from Europe and the United States to Japan.

Dividend yields for stocks listed on the MSCI real estate index for the eurozone reach nearly 7%, according to Thomson Reuters Data-Stream, which beats by far negative or near zero yields for government bonds in core countries Germany or France. This is also higher than other sought-after assets including corporate bonds, which offer an overall yield of 3.24% on the iBoxx index.

The MSCI real estate eurozone index is up 13.1% since the beginning of the year compared with 2% for the overall MSCI index for the region, Data-Stream shows.

Yields on prime commercial or real estate housing the actual property rather than stocks vary widely but analysts give estimates of an average 35% for the best property in Europe.

“Certainly the work that we have done on an advisory basis to clients in the past three to four months has highlighted the importance of property in their portfolios,” said Ken Adams, global strategist at Scottish Widows Investment Partnership.

That market is highly polarised, however, with anything less than outstanding properties offering long leases with financially sound tenants in sought-after areas being spurned by investors put off by recession and the euro debt crisis and prices for these more secondary assets falling.

Commercial real estate, which had widely collapsed in the wake of the subprime crisis, was competing with other high-yield assets such as emerging market bonds and must offer the safety of a high-quality bond with better yields to attract investors such as pension funds, said John Danes, property research director at UK fund manager Aberdeen Asset Management.

“The return has to be very financially secure, with long leases and if there is some kind of inflation link as well, all the better,” said Danes, adding that he had seen increased interest across sectors, from long-let retail and offices to British supermarkets, which he said offer financially solid tenants and yields of 4.55%.

In the birthplace of the subprime crisis, in the United States, a number of investors are focusing on the opportunities that have been created in housing.

Blackstone Group LP has spent more than US$300mil to purchase over 2,000 foreclosed homes to rent and bet on a recovery of the US housing market, the firm said in mid-July.

Although analysts forecast any growth in the US housing market would be sluggish and it could take 10 years or more to go back to 2006 peak levels, commercial housing had seen nine consecutive quarters of uninterrupted improvement with vacancies down and rents up, said Citi analyst Jeff Berenbaum.

“Yields are in the high 3% to low 4% range for the strongest properties,” he said.

“For a risky market like commercial housing that's pretty historically low but if you compare with treasury yields, it's still a pretty wide spread.”

On the housing front globally, prime property in major cities has seen its strongest growth since 2010 in the second quarter, with a 1.3% growth in the year to June, according to Knight Frank's prime global cities index, which tracks the top 5% of mainstream markets. Reuters

Rescind consent for Sg Ara hillside project, state told

GEORGE TOWN: The state government should revoke and withdraw the planning permission given to the developer of a hillside project in Sungai Ara as the area is still pristine.

Penang Gerakan local government bureau head Teh Leong Meng said as the custodian of the laws here, the state has the power to revoke the approval given to the developer since no clearing activities have started at the hillside.

“Claims that the state might have to fork out compensation to the developer or face a suit is just an excuse to mislead the people.”

He said the Penang Structure Plan (PSP) 2005-2009 was gazetted in June 2007 and he was made to understand that the developer had bought the 32.7ha land in 2009.

“When the developer bought the land, the company should have been aware of the clause in the PSP which explicitly forbids and disallows any residential, commercial or industrial development on hill land above 76m or where the slope exceeds 25 degrees.

“So, what compensation is the state talking about?” he asked.

Teh also said the council claimed that the project in Sungai Ara was approved under the PSP’s ‘special projects’.

“If approved as a special project, which is an escape clause, then it would have had the approval of the State Planning Committee of which the Chief Minister Lim Guan Eng is the chairman.

“So, how come in a report in The Star on June 7, the Chief Minister said that the state had not approved any development above 76m while council head Patahiyah Ismail said the council had approved 19 special projects between April 2008 and May this year?” - The Star

Conservation no simple matter Experts to talk on proper ways to care for heritage buildings

THOSE trying to conserve heri-tage buildings properly must be aware of making common mistakes which can spoil the structure of the buildings.

Certain modifications often do more harm than good, said Dr Donald Ellsmore, the Austra- lasia Chapter convenor of the Association for Preservation Tech-nology International.

Citing air-conditioning, he points out that such additions had an impact on moisture movement, which could then affect parts of the structure.

He said these issues stemmed from a lack of basic understanding as well as the tendency to turn to technology as a quick fix for problems.

“It is like treating a sickness with drugs, but not understanding what is actually wrong.

“You address only the symptoms, but not the cause. This may make you feel better but you never get well.

“We need to help people re-learn how a building functions, what the design elements are, and how best to care for them,” said Dr Ellsmore who is also an Associate Professor at the University of Melbourne.

Dr Ellsmore, together with University of Hong Kong Conserva-tion Laboratory manager Gesa Schwantes and local heritage architect and conservationist Laurence Loh, will be speaking at a George Town World Heritage Incorporated (GTWHI) seminar in Penang this Saturday.

Titled ‘Materials and Processes in the Conservation of Heritage Buildings’, it will be held at the Wawasan Open University starting 9am, and is open free to the public.

GTWHI education and outreach manager Sunitha Janamohanan said the seminar sought to help increase basic understanding of the conservation process, and what it means in practice.

With heritage buildings in George Town being bought, sold and restored at an ever-increasing pace since the Unesco inscription, her organisation believes it is imperative that people have good knowledge of conservation.

Dr Ellsmore cautioned that there were many risks that came with a Unesco listing.

These include the arrival of more tourists and the modification of structures to cater to the tourism industry can strip heritage buildings of their original character and purpose.

“It is important that the people of George Town move slowly in capitalising on these opportunities.

“They need to ensure that decisions are grounded in community support and rational thinking.

“Heritage should never be ex-ploited, as it is owned by the local community.

“There is nothing like George Town elsewhere in the world,” he said in an interview at the GTWHI office.

Schwantes added that the multi-cultural make-up of Penang’s community had resulted in diverse architectural influences that make the city unique, and better understanding of these elements would go a long way towards keeping Penang’s charm.

“When making any changes or repairs, you always want to use materials that are similar to the original and will not have an adverse impact on the overall structure.

“The climate and high humidity creates lots of problems for building owners, so it is important that remedial works are carried out correctly,” she said.

To register for the seminar, email edu@gtwhi.com.my or call 04-2616606. - The Star

Plans for Heritage Square in Penang

GEORGE TOWN: The state government and Penang Development Corporation (PDC) plan to transform a 1.82ha plot of land, including the old Sia Boey market here, into Penang’s new heritage enclave.

Chief Minister Lim Guan Eng said the new enclave would be known as Heritage Square, a project under the Komtar Phase Five development.

He said the move was in line with George Town’s World Heritage Listing and would complement the revitalisation of Komtar as a socio-civic centre and business hub of the state.

“It will be a complete makeover and it will predominantly be used as a public space,” he said after visiting Sia Boey in Lebuh Tek Soon yesterday.

Lim said the project had five major elements – restoration and expansion of Sia Boey (Prangin Market), creation of urban spaces, a heritage celebration square and an iconic George Town heritage centre, reinstatement and adaptive reuse of old shophouses and restoration of the Prangin Canal.

“The square and centre will restore the cultural vibrancy of George Town by promoting living heritage and street life as well as green the city to ensure balanced development in the area,” he said.

Lim, who is also PDC chairman, said the draft plans would be open to the public next week.

“The draft is subject to changes. We want to make public viewing available before Hari Raya Aidilfitri,” he said.

The revitalisation would include a visitors’ centre, crafts and souvenir retail areas, flowers and food hubs.

“PDC will build an adjacent market to complement the existing one. It will be a “dry” market instead of “wet” one,” Lim said.

He said existing shophouses along Maxwell Road would undergo adaptive reuse into cafes, coffeeshops, teahouses, handicraft centres, mini museums, boutiques and B&B hotels in line with the heritage ambience and theme of the area.

A five-storey building would be erected to add to the vibrancy of the square.

Lim also said that the restoration of the Prangin Canal would include plans for a hawker street food zone and street furniture in well-landscaped areas. - The Star