Some 227 Kampung Manis families in Penang set to receive replacement homes under Rumah MutiaraKu programme

Penang Chief Minister Chow Kon Yeow presented letters of consent for relocation to residents of Kampung Manis under the 'Rumah MutiaraKu' (RMKu) programme in Seberang Perai, during a handover ceremony held at Lot 286, Central Seberang Perai, today.The event also saw the signing of a Land Vacating and Relocation Agreement, as well as the presentation of Letters of Intent to the residents of Kampung Manis. — Bernama pic

First Published: Monday, 19 Oct 2026 9:31 AM MYT

Last Modified: Monday, 19 Oct 2026 9:37 AM MYT

BUTTERWORTH, Oct 19 — A total of 227 families involved in the Kampung Manis resettlement here will receive replacement homes under the Rumah MutiaraKu (RMKu) programme, including free houses for eligible families.

Penang Housing and Environment Committee chairman Datuk Seri S. Sundarajoo said the Railway Assets Corporation (RAC) and Penang State Housing Board (LPNPP) sealed the agreement by handing over site clearance consent documents to affected residents, ending a resettlement issue that had dragged on for more than 70 years.

He said that of the total, 174 families would each receive a free house, while 53 other families who are not permanent residents of Kampung Manis were offered houses at RM150,000 under a rent-to-own (RTO) scheme.

“The free replacement homes offered are 850 square feet, larger than the usual ones of 650 square feet. While the selling price of RMKu Type C homes through LPNPP is usually RM250,000, the market value of these homes is estimated at between RM350,000 and RM400,000.

“This is indeed sweet news for Kampung Manis residents, as these homes are being given free to eligible families,” he told reporters here today.   

He said this after the agreement signing and presentation of letters of intent to RMKu recipients to clear the site and relocate the villagers, officiated by Chief Minister Chow Kon Yeow. Also present was RAC chief executive officer Datuk Azhar Ahmad.

Sundarajoo said the redevelopment project is expected to begin by the end of this year or early next year at the latest, depending on the relevant authorities’ approval of the development plan.

He said the developer has 24 months from approval to complete the project. Residents who must vacate their homes temporarily will receive RM700 a month in rental assistance from the developer until their replacement homes are ready.

He said the proposed affordable housing development involves RAC-owned land on parts of Lot 286, Lot 65 and Lot 67, Bandar Perai, covering 1.61 hectares.

Meanwhile, Chow said the development comprises plans for 338 residential units, of which 174 replacement units will be provided by RAC, while 53 units will be allocated by LPNPP. It will also feature condominiums, a commercial centre, drive-thru outlets, serviced apartments, a swimming pool, playground and gymnasium.

He said the state government recognises financing constraints as a key barrier to home ownership, and the RTO scheme offers eligible groups an alternative path to rent before buying, subject to set conditions.

“This aligns with Strategic Initiative A1 of Penang2030, which focuses on housing affordability and diversity. As of March 31, Penang has provided 172,550 affordable units, or 78.43 per cent of the 220,000 target by 2030,” he said.

“To the Letters of Intent recipients, congratulations. I hope all documentation and follow-up proceed smoothly. The success of this redevelopment is not measured by physical change alone, but by how well we safeguard residents’ welfare and secure a better life for future generations,” he said.

RAC and LPNPP’s collaboration began with a Memorandum of Agreement on Nov 11, 2024, followed by a project development agreement between RAC and Rivanis Ventures Sdn Bhd on June 11 to develop the Kampung Manis squatter area, occupied on RAC-owned railway land, to be known as Madani Residences.

RAC has conducted a census of Kampung Manis residents since 2024 to identify eligible recipients, with resettlement to be carried out in phases through engagement sessions and information briefings.

The 55.705-acre Kampung Manis site will hereafter be known as Rivanis, with the developer carrying out the project in two parcels. The first, covering 36.025 acres, will be developed in stages over seven years. — Bernama