MSM’s Prai sugar refinery to stay open with planned 15-year lease
Railway Asset Corporation says the refinery is outside the Kampung Manis redevelopment, with the lease agreement still to be formalised.
MSM Malaysia Holdings Berhad’s sugar refinery in Prai will remain operational, with a further 15-year land lease to be formalised, Railway Asset Corporation (RAC) chief executive officer Datuk Azhar Ahmad said on October 19.
Azhar said the refinery occupies RAC-owned land but is not part of the Kampung Manis redevelopment. The relevant parties would enter into the lease agreement in the near future, he told reporters in Butterworth.
He was speaking after a ceremony involving the signing and presentation of letters of intent for Rumah MutiaraKu housing units. The housing arrangements are intended to enable residents’ relocation and clearance of the redevelopment site.
The Kampung Manis project covers 1.61 hectares of RAC land in Bandar Prai and involves relocating residents.
The Ministry of Transport had previously said it would take MSM’s application for a lease extension to the Cabinet. FELDA had asked the Penang government and RAC to consider a further 30-year term.
The Prai refinery began operating in 1964. Its proximity to a port and railway tracks supports MSM’s logistics operations.
