Penang to redevelop 3 squatter settlements into modern housing
The Penang government will redevelop three long-standing squatter settlements in Seberang Perai into modern residential areas, offering improved housing to residents at no cost. This initiative is part of the state’s broader aim to eliminate squatter settlements and raise living standards.
The affected villages—Kampung Manis (nearly 300 homes), Kampung Main Road in Perai (128 homes), and Kampung Ujung Batu in Bagan Dalam (357 homes)—have all agreed to the proposed redevelopment. Kampung Manis, the largest of the three, has existed for over 70 years.
Penang Housing and Environment Committee chairman Datuk Seri Sundarajoo Somu announced the plans during the Penang Housing Board’s (LPNPP) 2024 Excellence Appreciation Ceremony on April 21. He noted that most of the existing homes were built without proper approval and no longer meet modern living standards.
The redevelopment will begin with the construction of relocation homes for current residents. This will be followed by mixed housing developments that include affordable Rumah MutiaraKu units and commercial shop lots. A Request for Proposal (RFP) has been issued, and the project cost is currently being finalised. The state aims to break ground on at least two sites—Kampung Manis (36.7 acres) and Kampung Ujung Batu (15 acres)—within the year.
Sundarajoo also reported that Penang has delivered 166,607 housing units to date, reaching 75.73% of its 2030 target. For the Rent-to-Own (RTO) scheme, 5,096 units have been completed. Additionally, six urban renewal pilot projects are expected to benefit over 6,800 families.
