Loke: Transport Ministry seeks 10-year land lease extension for Penang MSM sugar refinery

Loke: Transport Ministry seeks 10-year land lease extension for Penang MSM sugar refinery



Transport Minister Anthony Loke speaks at a press conference during the launch of the 2025 Professional Advancement in Trucking and Haulage (PATH) Programme at Penang Port in Butterworth September 20, 2025. — Bernama pic

Saturday, 20 Sep 2025 1:26 PM MYT


BUTTERWORTH, Sept 20 — 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, currently operating on land leased from the Railway Assets Corporation (RAC), would not need to relocate or cease operations immediately but would instead be given sufficient time to plan its future direction.

He said this was because Kampung Manis, the site of the factory, would be redeveloped, with squatters in the area to be provided with free housing due to the poor condition of their living environment.

“There is no issue of the refinery being closed immediately, and it will take at least 10 years to relocate. I believe it is reasonable for the refinery to be given time, but they must also cooperate with us.


“If they refuse to relocate permanently, the area cannot be developed. We understand there will be operational challenges, so I am not asking them to move immediately next month,” he told reporters after attending the launch of the Seberang Jaya Perkeso Dialysis Centre at the Penang Perkeso Office in Seberang Jaya here today.

Elaborating, Loke said the lease, which was granted in 1964, expired last year, and the refinery would be given time to relocate as the redevelopment of the area was being carried out in phases.

He added that the redevelopment of Kampung Manis was in line with the Madani Government’s vision and Prime Minister Datuk Seri Anwar Ibrahim’s aspiration to provide better housing for all segments of society.


On September 17, Federal Land Development Authority (Felda) chairman Datuk Seri Ahmad Shabery Cheek said he would hold discussions with the Penang government and RAC on extending the land lease for the country’s largest sugar refinery.

MSM is tasked with ensuring a monthly supply of 24,000 tonnes and maintaining the nation’s buffer stock of 32,000 tonnes of raw and refined sugar to guarantee consistent and reliable availability in the local market. — Bernama