Zantalite Enterprise Withdraws Foreign Worker Dormitory Plan in Teluk Kumbar

On May 9, 2024, Zantalite Enterprise (M) Sdn Bhd withdrew its planning permission application to build a 30-storey foreign workers' hostel in Teluk Kumbar, Penang. This decision was announced by H'ng Mooi Lye, the chairman of the Local Government and Town and Country Planning Committee, during the Penang State Legislative Assembly on May 29.

Why this matters: The withdrawal of the foreign worker dormitory plan has significant implications for the local community and the state's approach to accommodating foreign workers. This decision may influence the development of future dormitory projects and impact the lives of thousands of foreign workers in the region.

The application, initially submitted on November 16, 2023, aimed to rezone the land from general housing, coastal reserve, and existing road zones to a general business zone. The project proposed to increase the building height from five to 30 floors, to be developed on Lot 1435 and 1437, Mukim 9 in Teluk Kumbar.

Residents in the area had previously objected to the dormitory construction plans. They took legal action and submitted a protest memorandum to Prime Minister Datuk Seri Anwar Ibrahim in February. These objections likely played a role in the withdrawal of the planning permission bid.

Another developer, Chong Company Sdn Bhd, had also submitted a planning permission application for a 27-storey worker's dormitory building block with 512 units in Teluk Kumbar. The Penang Island City Council (MBPP) approved this application, but the Planning Permission (Form C1) has not yet been issued since the company has not met the conditions set by MBPP.

All dormitory projects must comply with technical conditions set in the planning permission application, including conducting Social Impact Assessments (SIA) and Traffic Impact Assessments (TIA). H'ng Mooi Lye emphasized that any new foreign workers' hostels with capacities of more than 10,000 people will need approval from the National Physical Planning Council.

The state government had approved two applications for worker dormitories in Teluk Kumbar in November 2023, which would accommodate an estimated 32,680 foreign workers. However, the withdrawal of Zantalite Enterprise's application leaves only the Chong Company project pending approval.

H'ng Mooi Lye stated, 'The company submitted its application for the construction of a foreign workers' dormitory in Teluk Kumbar on Nov 16, last year. However, I want to inform the august house today that the company retracted its application on May 9.' He further added, 'The state government's stand is clear. On the issue of foreign workers' dormitories, any project planned must adhere to the technical conditions set.'

The withdrawal of Zantalite Enterprise's application highlights the challenges and community concerns associated with large-scale dormitory projects. The state's ongoing efforts to address these issues leave the future of foreign worker accommodations in Teluk Kumbar uncertain.

Key Takeaways

• Zantalite Enterprise withdrew its planning permission application for a 30-storey foreign workers' hostel in Teluk Kumbar, Penang.
• The project faced objections from local residents, who took legal action and submitted a protest memorandum to the Prime Minister.
• Another developer, Chong Company, has a pending application for a 27-storey worker's dormitory building block in Teluk Kumbar.
• All dormitory projects must comply with technical conditions, including Social Impact Assessments and Traffic Impact Assessments.
• The state government's stand is clear: any project planned must adhere to technical conditions set for foreign workers' dormitories.