PDC-Temasek JV on hold, Penang Umno blames state gov't
Penang Umno has criticised the state government following reports that two projects, involving Singapore's national wealth fund Temasek Holdings, have been put on hold.
State Umno chief Zainal Abidin Osman said this development was an indictment of the state government's ability to attract foreign investments.
Penang Umno says this is an indictment of state government's ability to attract foreign investments.
Penang Umno has criticised the state government following reports that two projects, involving Singapore's national wealth fund Temasek Holdings, have been put on hold.
State Umno chief Zainal Abidin Osman said this development was an indictment of the state government's ability to attract foreign investments.
“Is there an over-supply of luxury condo units in Penang or have investors lost confidence in Penang? Or has the Penang government failed to attract international investors?” Zainal asked.
He was referring to a report by The Edge Markets on Monday, which claimed that the Business Processing Outsourcing Prime (BPO Prime) project in Bayan Baru and the Penang International Technology Park (PITP) in Batu Kawan have been postponed indefinitely.
The article stated that the postponements were necessary due to current market conditions.
The projects were sealed in 2015 at a gross development value of RM11.3 billion. State-owned Penang Development Corporation has a 51 percent stake in the projects while Temasek is among the shareholders.
BN glorifies foreign investors
In an immediate response, Chief Minister Lim Guan Eng said Zainal was ignorant of the project background and questioned Umno's priorities when it comes to investments.
“This is the problem when BN glorifies foreign investors,” the DAP secretary-general said at a press conference.
“For us, these investors must first comply with the requirements of the state. He himself asked why the investor cited lack of demand of luxury condos as reason for postponement of the projects.
“This is the reason why we do not want to compromise,” Lim added.
On Penang's attractiveness to investors, Lim said Zainal had conveniently ignored the fact that Eco World and the Employees' Provident Fund (EPF) had recently announced a RM7.8 billion joint-venture development project in Batu Kawan.
“So what is the problem with Penang? This is proof that Penang is still attractive... I am sure Eco World and EPF have reviewed the investment climate in Penang properly, before announcing their decision," said Lim.
InvestPenang director Lee Kah Choon added that Temasek had not withdrawn from the BPO Prime or PITP project.
"We are still negotiating with them," Lee said.
