Penang: The Ministry of Transport (MOT) is set to present a proposal to the Cabinet seeking a 10-year extension of the land lease for Malaysia Holdings Berhad's (MSM) sugar refinery located in Perai. Transport Minister Anthony Loke announced that the refinery, which currently operates on land leased from the Railway Assets Corporation (RAC), will not face immediate relocation or closure. Instead, the company will be afforded ample time to strategize its future operations.

According to BERNAMA News Agency, the site of the refinery in Kampung Manis is slated for redevelopment. Squatters residing in the area are expected to receive free housing as part of the initiative due to the substandard condition of their current living environment. Minister Loke emphasized that while the refinery is not under threat of immediate closure, it is imperative for MSM to cooperate with relocation plans to enable the area's development.

The current lease, initially granted in 1964, expired last year. The refinery will be given time to transition as redevelopment progresses in phases. Loke noted that the redevelopment aligns with the MADANI Government's vision and Prime Minister Datuk Seri Anwar Ibrahim's goal of enhancing housing for all societal segments.

Federal Land Development Authority (FELDA) chairman Datuk Seri Ahmad Shabery Cheek has previously mentioned plans to discuss the lease extension with the Penang government and RAC to ensure the continuity of the country's largest sugar refinery. MSM is responsible for maintaining a steady supply of sugar, with a monthly obligation of 24,000 tonnes and a national buffer stock of 32,000 tonnes of raw and refined sugar, ensuring consistent availability in the local market.