The Ministry of Transport (MOT) will bring to the Cabinet a proposal seeking a 10-year extension of the land lease for Malaysia Holdings Berhad’s (MSM) sugar refinery in Perai.
Transport Minister Anthony Loke said the refinery, which operates on land owned by the Railway Assets Corporation (RAC), would not face immediate closure or relocation. Instead, the proposed extension would provide sufficient time for the company to plan its long-term operations.
Loke explained that the refinery is located in Kampung Manis, an area earmarked for redevelopment. As part of the revitalisation project, residents currently living in poor conditions would be offered free housing.
“There is no immediate plan to shut down the refinery. If relocation becomes necessary, it would take at least 10 years. We believe it is reasonable to grant the refinery adequate time, but they must also cooperate with us in this process,” he told reporters.
He emphasized that a permanent refusal to consider relocation would obstruct the area’s redevelopment. “We understand the operational challenges involved, which is why we’re not asking them to vacate the land next month,” Loke said after officiating the opening of the Seberang Jaya Perkeso Dialysis Centre at the Penang Perkeso Office in Seberang Jaya.
