GEORGE TOWN: Penang may consider scaling down its portion of a proposed land reclamation project off Karpal Singh Drive if necessary, Chief Minister Chow Kon Yeow says.

Chow said the RM1bil project is still subject to approval from the Environment Department (DOE) through the Environmental Impact Assessment (EIA) process.

"We have a deadline to submit the EIA report by February 2026.

"Until then, we can resubmit the report.

"In the event we do not get it, we can still appeal and submit improvements," he told reporters after an event in Batu Kawan on Wednesday (July 3).

Chow was responding to questions regarding a recent meeting with the environmental advocacy group Protect Karpal Singh Drive Action Committee.

Chow said the state government would consider their concerns and remained open to discussions.

"Matters can still be considered and negotiated.

"If the project secures EIA approval, emphasis will be placed on the method of construction to address their concerns," he said.

Chow added that Penang local government, town and country planning committee chairman H'ng Mooi Lye has since held discussions with PLB Engineering and the Penang Development Corporation (PDC) to better understand the details of the proposal.

"For now, we are still waiting for the EIA decision.

"There may be a need to revisit and renegotiate certain aspects of the project, especially since some land and components are allocated to the state.

"Some of these involve profit-sharing arrangements, and we might have to give up part of our portion,” he added, noting that only the initial contract has been signed at this stage.

In 2020, PDC signed a deal with PLB Engineering to rehabilitate and develop the Jelutong landfill, including reclaiming land off Karpal Singh Drive.

The proposed project involving almost 65ha of land would involve 38.3ha of land reclamation off Karpal Singh Drive and the rehabilitation of the adjacent 36.4ha Jelutong landfill that has been operating since the 1990s.

Post-rehabilitation, the area will transition into a mixed-development zone, with 20–30% of the reclaimed land allocated to the state.

The RM1bil project, a collaboration between PDC and PLB Engineering Bhd, is awaiting Environmental Impact Assessment (EIA) approval from DoE.

The project would strictly avoid encroaching on the ecologically sensitive Middle Bank marine sanctuary, Chow assured.

Activists have since called for rigorous oversight to ensure compliance with conservation commitments, given the sanctuary’s irreplaceable role in Penang’s marine heritage.

Spanning approximately 10sqkm (3,861 acres or 1,562.49ha) in the South Channel between Penang Island and the mainland, the Middle Bank sanctuary is a linchpin of marine biodiversity in the Straits of Malacca.

It hosts the region’s only extensive seagrass bed, a critical ecosystem that supports over 429 documented species of flora and fauna.

Among these are seven species of seagrass, which form underwater meadows vital for carbon sequestration, coastal protection, and nurturing juvenile marine life.