Media statement by the Penang State Government responding to the Minister of Natural Resources and Environment Malaysia YB Datuk Seri Dr. Haji Wan Junaidi:

1. Statement made at Sg Batu, Penang Island, on 27 December 2017:

• Utusan Malaysia: http://www.utusan.com.my/berita/nasional/tolak-tambak-laut-p-pinang-1.580580
• Berita Harian: https://www.bharian.com.my/berita/nasional/2017/12/367898/wan-junaidi-tolak-projek-mega-tambak-laut
• Bernama: http://www.bernama.com/bernama/state_news/bm/news.php?id=1422673
• Sinar Harian: http://www.sinarharian.com.my/mobile/nasional/kerajaan-p-pinang-diingat-jangan-berdegil-1.775624
• New Straits Times: https://www.nst.com.my/news/nation/2017/12/318806/penang-govt-warned-against-sea-reclamation-it-may-change-countrys
• The Star: https://www.thestar.com.my/news/nation/2017/12/28/more-harm-than-benefits-minister-fears-project-may-encroach-into-international-waters/
• And other print, online and TV news channels.

2. Statement made on 28 December 2017:

• Free Malaysia Today: http://www.freemalaysiatoday.com/category/nation/2017/12/28/wan-junaidi-views-on-penang-reclamation-not-due-to-polls/
• And other print and online news channels.

With regards to the statements made by the NRE Minister as published in the media above, the Penang Statement Government would like to clarify on the misconceptions concerning the proposed Penang South Reclamation (PSR) Project, as follows:

1. Absence of Technical Reports

• The minister alleged that the Department of Environment (DOE) has yet to receive any report on the proposed PSR Project, the State Government would like to clarify that in fact, the State Government has submitted more reports and studies than any other reclamation project carried out in Malaysia to various government departments and agencies, including DOE.
• The State Government has been actively seeking feedback from the respective departments and agencies for the various reports on the PSR Project, and has worked tirelessly to prepare resubmission of the reports based on the department and agencies’ feedback.
• For the PSR Environmental Impact Assessment (EIA) report, the State Government had submitted the report to DOE on 28 April 2017.
• A public display for the EIA report was carried out from 24 May – 23 June 2017 at 12 locations in Putrajaya, Kuala Lumpur and Penang.
• A meeting between the State Government, DOE and a panel of experts was then held on 15 June 2017 to discuss the EIA report.
• Subsequently, the revised EIA report incorporating the State’s responses to feedback and comments from DOE and the panel of experts was resubmitted to DOE on 15 August 2017.
• In addition to the EIA report, the State Government is also in the midst of preparing detailed reports in accordance with the advice received from the National Physical Planning Council (NPPC)’s Working and Regulating Committees.

A list of all the reports prepared and submitted by the State Government for the PSR Project is summarised as follows:

• As a responsible State Government, Penang State Government will ensure that all concerns are resolved before the project is implemented.

2. PSR Project Has Proceeded Without Federal Approval

• No reclamation works has been carried out in the southern coast of Penang Island for the PSR Project.
• The State Government has reiterated in a few occasions, including via official statements made on 14 July, 21 July, 16 August and 20 August 2017 that the State Government will comply with all legal requirement before implementation of the project. 
• The State Government again reiterates that the State does not intend to start reclamation works without obtaining the necessary approvals, including EIA approval.

3. Rationale of the PSR Project and Role of the Project Delivery Partner (PDP) – SRS Consortium

• The PSR Project is a project by Penang State Government. It is an important project for the future development of Penang as a technologically advanced, modern, inclusive and socially progressive state via Smart City masterplan initiatives. It is a 50-year development project.
• It is a recognised fact that Penang Island severely lacks sizeable strategically-located land for sustainable growth.
• PSR Project presents an ideal opportunity for the State Government to transform and future-proof Penang under a long-term development masterplan.
• The PSR Project provides the State Government a unique opportunity to resolve some longstanding social issues, chief amongst which are housing and transportation.
• Being the sole land owner of PSR, the State Government will have the ability to carry out more housing projects to supplement its current efforts to build sufficient quality housing for all income levels of its Rakyat.
• It is planned that 30% of the housing units on PSR will be allocated as affordable housing, which will benefit the fishermen community.
• The State Government wishes to reiterate that PSR Project is a State Government project. The role of SRS Consortium as the PDP, is only to assist the State Government with the implementation of the project. SRS Consortium is neither the Project Owner, nor are they the developer of the project.

4. International Boundary & Shifting of the Continental Shelf of Malaysia

• The proposed PSR Project is located at a very shallow area of less than -3.5 m CD (depth) on the continental shelf of Malaysia and well within the 3 nautical miles radius from the existing shoreline of Penang Island’s south coast.
• Based on the map obtained from the Malaysian Maritime Enforcement Agency’s (MMEA) website, Penang Island and the proposed PSR Project are located far from the country’s international border with Indonesia.
• There is no possibility of the shifting of the continental shelf and encroachment into maritime international border after PSR Project is built (refer map below). As comparison, reclamation projects in Johor and Melaka are much closer to international waters.
• It is quite perplexing when the NRE Minister mentioned he is agreeable with the reclamation projects in Johor and Malacca, given that the Johor reclamation project is fringing Malaysia’s boundary with Singapore, while the Malacca reclamation project is much closer to the Indonesian maritime border compared with Penang’s PSR Project.
• The State is equally puzzled when the NRE Minister said he is not agreeable with reclamation projects that create new coastlines such as PSR, because all reclamation projects will create new coastlines including those in the states of Johor and Malacca.

5. PSR Project will Jeopardise the Livelihood of the Fishermen Community

• Comments that all fishes, crabs, clams and other sea produce will be lost once PSR Project starts is incorrect.
• The PSR Project only occupies a small portion of the fishing area of local fishermen (refer map below). There is still a sizeable fishing ground for the fishermen in the south coast.

• To facilitate fishermen’s day-to-day works, the State Government will construct 4 fishermen jetties and a dredged channel to allow fishermen access to sea at all times (currently, fishermen are only able to access the sea during high-tide as they park their boats along the beach that will be stranded during low-tide).
• Upon completion of the PSR Project, the fishermen will have 24/7 access to the sea with better and improved fishing facilities through permanent access channels between the reclaimed islands, irrespective of tide conditions.
• The State will also ensure fishermen’s safety and access to the sea will not be hindered during the construction period. To ensure fishermen’s safety, a Marine Traffic Risk Assessment (MTRA) has also been conducted and submitted to Jabatan Laut for approval.
• Based on feedback from the SIA study, a large majority of local from South Penang belongs to the B40 income group, more so the fishermen community. The fishermen community is the lowest income group among the local villagers and earn an average of approximately RM 1,578 per month from fishing activities (average household income of RM 2,710).
• The SIA study also showed that fishermen complained about their dwindling catch over the years (before PSR Project), and only about 20% of fishermen’s children wish to continue fishing as their vocation. The study paints a bleak picture for the future of in-shore fishermen in south coast Penang Island.
• The fishermen community has always been seen by the State as an important stakeholder in the implementation of PSR Project. To this end, the fishermen community was never considered as “minority” by the Penang State Government.
• The PSR Project presents a unique opportunity for the south coast fishermen and their children to secure a better future and improve their lives.
• With jobs and new business opportunities including sea-based activities created during and after the construction of PSR as well as the ensuing developments, the locals (including fishermen) and their children are set to be among the primary beneficiaries.
• It is unlikely that fishermen will end up become “beggars with the project implementation, on the contrary, if nothing is done, fishermen’s lives will become more difficult in the coming years due to escalating living costs, especially in Penang.
• To this end, the State Government has planned a series of measures to ensure locals and the fishermen community benefits from the development and these plans will be included in the SIA and FIA reports, subject to approvals from PLANMalaysia and DOF. It will also be included as part of the conditions of approval for the project.
• State Government will make an announcement of these measures once it is approved before implementation of the PSR Project.

6. Perception by NRE Minister

• While the State Government is pleased to hear that the NRE Minister said he will be fair in reviewing all the reports pertaining to the PSR Project before making a decision, however, based on the statements published in the media, it appears he may not have received full information on the latest developments of PSR.
• The State Government strongly urges the minister to peruse the State’s submission to DOE to assist in attaining a better comprehension of PSR for an informed view of the project.
• To this end, the State Government shall prepare a report to clarify on the issues raised by the NRE Minister. The report will be submitted to the minister and his ministry within a week’s time.
• The State is warmly welcomes the opportunity ready to discuss with the NRE Minister on the issues raised when submitting the report to the ministry. 
• Penang State Government would like to stress that as a responsible State Government, it is the stand of the State to develop the PSR Project in a responsible and sustainable manner.
• The PSR Project will be developed to benefits all Penangites and our future generations. The affected fishermen community will be give special attention to ensure they will also enjoy the benefits from the project.
• The State Government is willing to work with all Federal departments and agencies and across partisan divides to ensure the benefits of PSR Project are shared not only by Penangites, but all Malaysians, for the betterment of our country in the coming decades.

7. Call for Impartial Treatment

• The State stresses that evaluation on the proposed PSR Project should be dealt with on sound technical grounds with a holistic view towards the overall economic and social benefits towards Penang and its future generations, and not be influenced by politics.
• We hope the Federal Government will be fair in processing of the application for reclamation by the Penang State Government for the future of all Penangites.
• As highlighted earlier, it has come to the attention of the State there are at least 10 reclamation projects ongoing in other states in Malaysia for various purposes including tourism, residential, industrial, mixed developments, etc. (refer map below).
• Can it be said that these reclamation projects are without environmental and social impacts or fishermen concerns?
• Has the same scrutiny, enforcement and high evaluation standards been applied to these other reclamation projects – compared to PSR Project in Penang?
• It is the State’s view that the evaluation of any reclamation project should be impartial, taking into consideration all aspects including economic and social benefits and feasibility in the long run.
• We urge the Federal Govt to use the same benchmark and to practice impartiality in assessing all reclamation projects in Malaysia.

ON GOING RECLAMATION PROJECTS IN OTHER STATES IN MALAYSIA