Penang eyes new agrotourism site

GEORGE TOWN: A portion of the hill-valley located in Paya Terubong, George Town, will be transformed into a RM40 million agrotourism site catering to adventure seekers and nature enthusiasts. The development will include a durian orchard, a livestock feeding area, viewing areas, campsites, and recreational spaces for activities such as hiking and glamping. The project, to be undertaken by KAT Resources, will be developed on land owned by Penang Development Corporation (PDC), the state’s investment arm.

Approximately RM20 million will be allocated towards agricultural development and infrastructure work within the first five years, while the remaining sum will be dedicated to tourism development. With an area spanning 165 hectares, Chief Minister Chow Kon Yeow stated that once completed, the project will become another landmark in Penang and create 400 job opportunities. Chow emphasized that KAT Resources must obtain the necessary planning and environmental approvals.

Chow added, “The project is expected to begin within a year, after receiving the necessary approvals. As it involves green areas, we will prioritize considerations such as drainage, slopes, and valleys to ensure compliance with safety guidelines.” He also acknowledged that a section of the area had been encroached upon for illegal agricultural activities. The fate of the farmers involved will be further discussed, with the possibility of leasing a small plot of land for their farming needs. Chow believes this approach will lead to more organized and planned land development that benefits both the state and the tourism industry.

Penang Development Corporation’s CEO, Datuk Aziz Bakar, and KAT Resources’ CEO, Teoh Kok Aun, finalized the 45-year lease agreement during a signing ceremony at Komtar. Aziz mentioned that the lease would generate an estimated income of RM24 million for the state. “PDC will designate a specific area of the site to be conserved, with guidance from the Agriculture Department to ensure the preservation of substantial greenery,” he explained.

Teoh expects the project to create around 400 employment opportunities, with an estimated annual revenue of RM3 million from agriculture and RM5 million from tourism activities. He also highlighted the potential spillover effects that could benefit hotels, transportation, and the food and beverage industry. The signing ceremony was attended by Penang agrotechnology, food security, and cooperative development committee chairman Fahmi Zainol and state housing and environment committee chairman Datuk Seri S. Sundarajoo.