After 70 years of uncertainty, 227 Kampung Manis families in Perai have been offered housing arrangements under a redevelopment project aimed at resolving the settlement’s longstanding housing issue.
Of these, 174 resident families will receive replacement homes measuring 850 sq ft free of charge, while another 53 eligible property owners with historical ties to the settlement but who no longer live there will be offered similar units at RM150,000 through a rent-to-own scheme.
The affected residents have received consent documents from the Railway Asset Corporation (RAC) and the Penang Housing Board (LPNPP), outlining the terms of their relocation under the state government’s Rumah MutiaraKu (RMKu) housing programme.
The arrangement marks a significant step towards resolving a housing issue that has affected the community for approximately seven decades.
Each replacement unit for the 174 resident families is valued at approximately RM400,000, with the homes expected to provide more space than the 650 sq ft low-cost units typically offered under similar schemes.
For residents required to temporarily vacate the site during construction, the appointed developer will provide RM700 in monthly rental assistance until their replacement homes are completed.
The redevelopment follows years of negotiations involving the Penang government, RAC and other parties to establish an arrangement for the affected families.
Penang Chief Minister Chow Kon Yeow said the parties signed a Memorandum of Understanding and a Memorandum of Agreement on Nov 11, 2024, before spending nearly two years resolving outstanding matters and securing a developer for the project.
He expressed hope that the necessary development plans would be submitted and approved by the Seberang Perai City Council (MBSP) soon, allowing construction to begin within the coming months.
The developer is expected to commence construction towards the end of 2026 or early 2027, subject to the necessary approvals.
The mixed-use development, named Rivanis, will be implemented in two phases. The first phase will comprise 338 residential units, alongside facilities including a swimming pool and car park.
Construction is expected to take approximately 24 months from the date the development plans are approved.
Penang Housing and Environment Committee chairman Datuk Seri Sundarajoo Somu described the agreement as a significant milestone for Kampung Manis residents, who have waited decades for a resolution to their housing situation.
He said the replacement homes would offer residents an opportunity to improve their living conditions, while the rent-to-own arrangement would provide an option for eligible property owners who no longer reside at the settlement.
However, the latest agreement represents progress towards redevelopment rather than its completion. The replacement homes have yet to be built, and construction remains dependent on the approval of the relevant development plans.
The next stage will therefore be crucial in determining whether the proposed arrangements translate into completed homes for the affected families.
While the agreement provides a pathway towards resolving the longstanding issue, timely approvals, construction and adequate support throughout the temporary relocation period will be essential to delivering the promised housing.
For the 227 families offered housing arrangements, the outcome will ultimately depend on whether the project moves from agreement to implementation as planned.