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The Case Study On Penang South - Island Reclamation (PSR) Megaproject

A study on the loopholes in environmental law and policy that shall affect biodiversity, socio-economy and cultural heritage of Penang.
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100% found this document useful (1 vote)
399 views43 pages

The Case Study On Penang South - Island Reclamation (PSR) Megaproject

A study on the loopholes in environmental law and policy that shall affect biodiversity, socio-economy and cultural heritage of Penang.
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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FARHANA MOHAMMED ISA NORZAIHAN MAD ZIN MAZLIYANI BT MAZLAN

(2019658866) (2020392719) (2020391063)

Team members
CONTENTS
01 INTRODUCTION………4
02 CASE STUDY: PENANG SOUTH
ISLAND RECLAMATION (PSR)
MEGAPROJECT……….10
03 CURRENT MALAYSIAN
ENVIRONMENTAL LAWS AND
POLICIES ……………25
04 POTENTIALITIES AND
CONSTRAINTS OF THESE
LEGISLATIONS……….34
05 CONCLUSION &
WAY FORWARD………..38
INTRODUCTION
Malaysia is a signatory to the ASEAN Declaration on Environmental
Sustainability which, inter alia, declared to “promote conservation
and sustainable management of key ecosystems, including
forests, coastal and marine habitats and to increase the
cumulative forest cover in the ASEAN region by at least 10 million
hectares by 2020”.

Source: https://asean.org/?static_post=asean-declaration-on-environmental-sustainability
“Asia’s growth is tremendously dirty, polluting, damaging and
carbon intensive.” Sachs said the situation is no different in
Malaysia that while on the path of development, it is not
developing sustainably. He added that Malaysia has
remarkable bio and cultural diversity, but they are not being
adequately protected. (Jeffrey D. Sachs, 2012)
Penang was originally founded by Captain Francis Light when
he took possession of the land on behalf of East Indian Trading
Company on year 1786.

In the year of 2008, Penang has listed as UNESCO World Cultural


Heritage Site.

According to UNESCO, the awarded are based on ;

"The protective measures for the properties are adequate. Both towns exhibit a
generally acceptable state of conservation, although efforts are required to ensure
the conservation of shophouses. The management plans and structures are
adequate, and can be enhanced through the continuing conservation programs of
the State Party."
P
R
E
S
E
R
V
E
RAPID URBANISATION

INDUSTRALIZATION

WIDE AND SHALLOW


WATER AT THE
COASTLINE

DEMAND FOR PRIME


LAND IN COASTAL CITIES

FINANCIAL ADVANTAGES
CASE STUDY: PENANG SOUTH
ISLAND RECLAMATION (PSR)
MEGAPROJECT
Project owner and PDP
Penang State Government owned this project. The Project delivery partner (PDP) is
SRS CONSORTIUM which consists of GAMUDA, Ideal Property, and Loh Phoy
Yen Holdings. SRS manages the two mega projects, PSR and PTMP and the State
Government pays SRS a 6% fee based on the construction cost PSR (RM11billion
for reclamation works)
Penang Transport Master Plan (PTMP)
The PSR was to fund the RM46 billion Penang Transport Master Plan (PTMP). The
reclaimed islands will belong fully to State Government but most of the land will be
auctioned off to fund PTMP so the transport plan could be entirely self- funded

Bayan Lepas Free Industrial Zone and Affordable Housing


PSR is assumed to solve rising property prices and shortage of quality affordable
housing.. PSR also planned for the Bayan Lepas Industrial Zone expansion and
reduce development pressure in George Town.

Background of PSR megaproject


The benefits of PSR
New Urban Land : 4,500 acres (1,821 hectares)
the three islands bring together mixed-use districts of 15,000 to 18,000 residents across 50
to 500 acres, and a continuous 50 to 100m buffer around each district, establishing habitat
connectivity and supporting edge ecologies in reserves, parks, corridors and urban plazas.

Creating Jobs opportunity & high income living


To become a high income state, embracing the digital age and
industry 4.0. Creating more diversification in tourism, agriculture
and manufacturing drivers.

Tourism Destination
Targeting average tourism spending as well as new international
high-value destination products

Attracts investors to fund the PTMP projects


Invest in the built environment to improve resilience, to address
car dependency and urban sprawl and also to fund the Penang
Transport Master Plan (PTMP)
Industry,
Decent Work and Reduce Responsible
No Poverty Innovation
Inequalities Sustainable Cities Consumption and
Economic Growth and Infrastructure
and Communities Production

Climate Action Life Below Water Life On Land Peace, Justice, and Partnerships
Strong Institutions

J. W. S. Zeng, 2020)
“a playground for city
planners and architects
to give their best design”
a mixed development
project.

continuation and expansion of the


Bayan Lepas Free Industrial Zone (FIZ)
Penang South Islands International Masterplan Competition was
launch in November 2019, and recently, the winner was
announced in August 2020. BIG, hijjas + ramboll win
competition , an international architecture firm in collaborations
with local well-known architect. (Penang2030)

The winning proposal of


the PSR masterplan
‘the channels’, ‘the mangroves’, and ‘the laguna’.
“biodivercity”
The three complementary phases of construction: in phase 1, active
Biodivercity” will have an integrated system of localized water destinations include a wave pool and technology park; in phase 2, a civic
resources, renewable energy and waste management, tied altogether in heart establishes governance and research institutions in the area; and in
a human-made ecosystem. rather than design a city for cars, we phase 3, a cultural coast builds upon the heritage and vibrant creative
designed biodivercity for waterways, rail and different kinds of personal energy of penang’s george town to create a regional and international
mobility, forming a multi-modal environment of movement. draw.

THE CONCEPT
“urban mosaic”
It will provide residents with approximately 4.6 km of public beaches, 600
acres of parks, and a 25 km waterfront. The project is conceived as an
urban mosaic of three diverse islands with a clear focus on livability,
environmental sustainability, and social and economic inclusivity. The
three islands bring together mixed-use districts of 15,000 to 18,000
residents across 50 to 500 acres, and a continuous 50 to 100m buffer
around each district, establishing habitat connectivity and supporting edge
ecologies in reserves, parks, corridors and urban plazas.

“the channels”
Meanwhile, newly
established marine The phases of construction:
habitats support 1- active destinations include
biodiversity underwater a wave pool and
by providing spawning technology park;
grounds for native species, 2- a civic heart establishes
and recreational points and governance and research
hatcheries support the local institutions in the area;
communities along 3- a cultural coast builds upon the
Penang’s southern coast. heritage and vibrant creative
energy of Penang’s George Town

Forest reserves are


connected to coastal
beaches through a web
of ecological corridors.
within human-
populated areas,
Eight smaller islands animals are given safe
form a miniature passage through the
archipelago, where continuous canopy
floating, stilted and and waterways, and
terraced housing takes within natural habitats,
advantage of the people can safely
natural setting access elevated
boardwalks.
Environmental consideration
The greatest concern on the coastal land reclamation project is the impact on the
natural environment. Experienced engineers have no difficulty in designing and
constructing coastal land reclamation works but few can claim the complete
mitigation solution to ensure there is NO IMPACT ON THE ENVIROMENT.

Damage to sensitive marine eco-system and habitat


The reclamation projects leads to disturbance on the hydrodynamic regime and the
marine eco-system by pumping material from offshore seabed into the are to be
reclaimed using dredger and pipeline system. The magnitude of the impact are
hardly predicted and quantify. Foreshore area richest (species and numbers) in
plankton & annelids (marine worms)
Loss of mangrove / wetlands
Mangroves held in creating new land, combating erosion and is the
breeding ground for various fishes, prawn and crabs

S. Abdullah & H. K Loi (1992)

The ugly truth……


#penangtolaktambak
DECONSTRUCTION
SOCIAL - ECONOMIC OF THE COASTAL
JEOPARDIZE THE FOOD CLIMATE CHANGE IMPACT ON THE LOCAL FISHERMEN LOST THEIR
AND MARINE
SECURITY PEOPLE MAIN INCOME (Especially
ECOSYSTEM
the small-scale fisheries )

INCOME GAP BETWEEN COASTAL POLLUTION


CHANGES OF NATURAL POOR AND RICH HIGH IMPACT ON UNAFFORDABLE HOUSING
GEOGRAPHY CARBON EMISSION SCHEME FOR LOCAL
The reason of objections of PSR megaproject
The impacts of sand-mining will also be felt in Perak. This reclamation will destroy the richest fishery in Penang.
The deep seabed (benthic zone) will be dredged and destroyed.
In view of rapid fish depletion worldwide, this coastal fish bank is our
As in the northern reclamation, the fishermen in Penang and an
food security. It supplies local needs as well as Penang’s food and
additional 6,080 fishermen in Perak will be pulling out mud and
tourism industry. Once destroyed, seafood prices will hike beyond what
rocks, tearing holes in their fishing nets.
the average Penangite can afford

Penang’s pristine southern beaches will be


ruined The livelihoods of 4,817 inshore fishermen are at
The coastal environment of Permatang Damar Laut, stake
Gertak Sanggul and Teluk Kumbar will be wrecked by These fishermen have staged repeated protests, the
reclamation and pollution. Locals will lose their biggest being 1,500 fishermen from 14 associations in
recreational beaches and seaviews. Penang’s eco- Pantai Sungai Batu, Teluk Kumbar (Berita Harian,
tourism reputation will be tainted by this irresponsible 13.12.2015), the most recent in early 2019. Fishermen’s
project. experience with the STP2 northern reclamation shows
that they have not been well protected by the Penang
Coastal habitats and Life Below Water (SDG 14) will government, despite reassurances.
be devastated
The nesting patterns of the IUCN-listed "vulnerable" Olive
Ridley Turtle (Penyu Lipas) and the playground of the The RM46 billion Penang Transport Master Plan
Indo-Pacific Humpback Dolphin and the Indo-Pacific (PTMP) is a poor excuse for reclamation.
Finless Porpoise will be disrupted. Contamination is likely
to reach the coral-rich Pulau Kendi. Marine biodiversity for The reclamation and land sales are purportedly a
miles around will be stressed and depleted. means to pay for the implementation of the PTMP to
ease traffic congestion. But the present version of the
PTMP is fundamentally flawed, consisting of a slew of
The project is environmentally reckless in the face of climate crisis expensive projects rather than viable, integrated
While claiming to target 40% reduction, the reclamation project will solutions.
generate an additional 3.2 million tons of carbon emissions annually
(source, 18 Nasihat, 18 April 2019)
OTHERS RECLAMATION PROJECTS IN PENANG.
1) QUEENS WATERFRONT AT BAYAN BARU.
A new commercial development by IDEAL Property Group is located just right
beside of Queensbay Mall.
With a total gross development value (GDV) of RM2.15 billion, the
development will comprise an 11.74-acre residential component known as
Queens Residences, a 6.1-acre marina, a waterfront promenade known as
Queens Waterfront Promenade, the Queens Sports Centre and an
international school.

Artist’s Impression by Ideal Property Group


Photo taken on 25th Oct. 2020
OTHERS RECLAMATION PROJECTS IN PENANG.
2) SRI TANJUNG PINANG AT TANJONG
TOKONG.
This is among the biggest reclamation projects in Penang done by Eastern &
Oriental Berhad (E&O) through Tanjung Pinang Development. Starting with Sri
Tanjung Pinang 1 ( STP1) which was completed in 2005.

Then is continue with phase 2 of the development which is Sri Tanjung Pinang
2 (STP2) which are yet achieve their target completion date on 2019.

The proposed reclamation development (Left & Center photos) STP 1 in 1996
(Right photo) STP 1 in 2015
OTHERS RECLAMATION PROJECTS IN PENANG.

Photo taken on March 2019 (retrieve from TPD website)


The proposed reclamation development
Land reclamation project for Gurney Wharf
are still in progress.

Photo taken on 25th Oct. 2020


CURRENT MALAYSIAN
ENVIRONMENTAL LAWS AND
POLICIES
In order to cope with the environmental problems, the
Government of Malaysia has passed some important
environmental laws and policies. There are at least 39
laws related to the environmental matters and various
regulations, rules and orders passed for the purpose of
environmental protection in Malaysia. These laws are
passed and implemented by the federal and state
governments.
Environmental Quality
Act 1974
An Act relating to the prevention, abatement, control of
pollution and enhancement of the environment, and for
purposes connected therewith. The Director General of
Environmental Quality has been appointed by the Minister to
administer this Act and any regulations and orders made
thereunder

The acts divided into the following Parts:


Appeal and
Preliminary Licenses Appeal Board

1 2 3 4 5 6
Administration Prohibition and Control Miscellaneous
of Pollution

The Environment Quality Act 1974 is a landmark creating the


Department of Environment incorporating the cross-sectoral
concerns into the body of legislation.
National Policy on the Environmental (NEP/DASN)
Malaysia’s environment and resource There are eight (8) principles listed under DASN to harmonies
management is guided by the National economic development goals with environmental imperatives:
Policy on the Environmental (NEP)
which was launched on October 2,
2002.
In recognition of the importance of
Stewardship of the Environment
1
integrating environmental issues in the
overall framework of development, the
NEP set out principles and strategies 2 Conservation of Nature’s Vitality and Diversity

necessary to ensure that the


environment remains productive, both
ecologically and economically.
Continuous Improvement in the Quality of the
Environment
3
Objectives are to achieves

01 A clean environment, safe, healthy and productive 4 Corruption


Sustainable Use of Natural Resources

environment for present and future generations.


Integrated Decision-Making
5
02 production. 3 6
Sustainable lifestyles and patterns of consumption and Role of the Private Sector

03
Conservation of country’s unique and diverse cultural
and natural heritage with effective participation by all
Commitment and Accountability
7
sectors of society, and
8 Active Participation in the International Community
Environmental Impact Assessment (EIA)
The EIA was introduced in the EQA in 1986. It has now become an important part
of the environmental law scene.

All prescribed activities need to obtain EIA approval from the Director General of
Environment prior to the giving of approval by the relevant Federal or State
Government authority for the implementation of the project. The Approving
Authority is the Government Authority that has the task of deciding, whether or
not a project should proceed.

Due to the sensitivity of the project and polluting potential (significant impacts)
from the construction and/or operations, some of the prescribed activities have
been required to go through the Detailed EIA Procedures which involves public
participation.

Objectives of EIA are


01 02 03 04
To examine and To identify, To recommend and To identify the
select the best predict and incorporate into environmental
from the project assess significant the project plan, costs and benefits
options available; residual appropriate of the project to
environmental abatement and the community.
impacts; mitigating
measures; and
Environmental Impact Assessment (EIA)
Procedure
Preliminary assessment
This should be initiated during the early stages of project
01 planning. It might be conducted "in house or by a
consultant.
The assessor and the EIA consultant will normally have Review
informal meetings to obtain some verifications or certain
important feedback pertaining to some aspect of the
The review of the detailed assessment is done by an
study before the result of that study are reported formally
for examination and approval by the approving authority 03 independent Review Panel, established specifically for
the project of concern and comprising of members from
and the Director General of Environmental Quality.
relevant disciplines and chaired by the Director General
of Environmental Quality. The panel may ask suitable
experts for their specialist advice on specific aspects of
any project under review. Comments are also invited
Detailed assessment from concerned environmental-related agencies and from
the public.

02 This is carried out for those prescribed activities for


which significant residual environmental impacts have
been predicted in the preliminary assessment. It should
continue during project planning until the project plan is
finalized
The results of the assessment are reported formally for
examination and approval.
Sequence of activities required for planning approval
and compliance with environmental approval
conditions and indicates who is responsible for various
activities
APPLICATION PROCEDURE FOR
ENVIRONMENTAL REQUIREMENTS IN MALAYSIA

STEP 03

STEP 02 Licence to occupy:

Crude Palm Oil Mills.


STEP 01 Activities subject to air
and water pollution Raw Natural Rubber
control: Factories.
Site Suitability Evaluation Written Permission
(for non-Prescribed (Air). Scheduled Waste
Activities). Treatment and
Written Notification Disposal Activities
EIA Approval (Sewage, Industrial
(for Prescribed Activities). Effluent, Leachate). Prescribed
Conveyance
Written Approval
(Prescribed Premises:
Crude Palm Oil Mills,
Raw Natural Rubber
Mills, Scheduled
Wastes Facilities)
Malaysian Environmental Laws
1. Environmental Quality Act 1974 (Act 127) 20. Street, Drainage and Building Act 1974
2. Atomic Energy Licensing Act 1984 21. Town and Country Planning Act 1976
3. Biosafety Act 2007 22. Water Enactment 1920 (Revised) Act 1979
4. Drainage Works Act 1954 23. Water Services Industries Act 2006
5. Fisheries Act 1985 24. Wildlife Conservation Act 2010
6. International Trade In Endangered Species Act 2008 25. Sabah Animal Ordinance 1962
7. Irrigation Areas Act 1953 26. Sabah Biodiversity Enactment 2000
8. Land Conservation Act 1960 27. Sabah Drainage and Irrigation Ordinance 1956
9. Local Government Act 1979 28. Sabah Environment Protection Enactment 2002
10. Merchant Shipping (Oil Pollution) Act 1994 29. Sabah Forest Enactment 1968
11. National Forestry Act 1984 30. Sabah Mining Ordinance 1960
12. National Park Act 1980 31. Sabah Wildlife Conservation Enactment 1997
13. Parks Enactment 1984 32. Sarawak Biodiversity Centre Ordinance 1997
14. Plant Quarantine Act 1976 33. Sarawak Forest Ordinance 1954
15. Pearl Oyster Shell Fishery Ordinance (Sabah 34. Sarawak Natural Resources and Environment
Ordinance) (Amendment) Ordinance 2001
16. Pesticides Act 1974
17. Protection of Wildlife Act 1972
18. Radioactive Substance Act 1968
19. Sewerage Services Act 1993
POTENTIALITIES AND
CONSTRAINTS OF THESE
LEGISLATIONS
Exclusive power by the federal government
To establish powers to be exercised exclusively by the federal A
government and it does not depend on parallel enactments
for its effectiveness within state boundaries.

Public interest litigation


To welcome public interest litigation on behalf of “generations B
yet unborn”

Cooperation between the federal and state government


To have a proper agency and legislation and good cooperation between the C
federal and state government, in hope that the environmental problem in
Malaysia can be controlled effectively.
Speedy and inexpensive procedure
A speedy and inexpensive procedure for the enforcement of D
B C
environmental rights and duties.

Role of the courts


To establish the role of the courts and its influence on the E
environmental law enforcement and compliance of natural
resource
D E F
Systematic legislations
To be systematically harmonized or fine-tuned the legislations F
to ensure their smooth implementation, locally and
internationally. A. H. Embong (2015)

A. H. Embong (2015)
Legislation insufficient
1
Not sufficient legislation governing the coastal zone and marine
area, and most of Environmental Laws and policy are an act that
Lack of enforcement
4
Lack of enforcement to ensure the legislation and
environmental management plan implemented as per
control the developments with minimal impacts to environment plan
and not to stop destruction to natural environment.

No SOP
no standard procedures that apply to criminal
environmental cases and the procedures are
2 Corruption
Corruption (or complacency) of our enforcement
officials and politicians
5
essentially the same with the normal criminal cases

Light sentences
3
the Malaysian courts were criticized for imposing light
sentences against environmental offenders and poor
Ecological complexity
6
The complexity of Malaysia’s ecology has also been a
challenge to ensure consistent monitoring of
judicial awareness in protecting our marine wildlife enforcement
against destruction of marine and water pollution
A. H. Embong (2015)
It is not a prerequisite to developmental projects.
01 The fact remains that projects do go on without the said approval as what happened in the case of Tenggara Gugusan Holidays Sdn Bhd v Public
Prosecutor a case regarding a resort project on the beach of Kampung Pulau Kerengga, Marang, Terengganu. Although the crux of the decision
was the definition of "any person"," the case was brought to court because the EIA report was completed after the
project itself was completed, thus making a mockery of the process as well as being in breach of the EQA.

There is a conflict of interest in the writing of the EIA report as the consultants who prepare the
02 report are hired by the development company.
The DOE has a list of consultants which they endorse, but a developer is free to choose his own. It does not take a large stretch of the imagination
to see that a consultant is highly unlikely going to prepare an unfavorable report for the very person who is paying him.

There are too many loopholes in the criteria of projects that require an ElA report.
03 For example housing projects only need an EIA report if they are over 50 hectares in size." All it takes is for a developer to break his project into
smaller lots and he can in that way circumvent the EIA requirement.
CONCLUSION & WAY FORWARD
list of references
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/jps/resources/auto%20download%20images/5844e2d67f042.pdf

Dr. Nik & Associates Sdn. Bhd (2017) , Environmental Impact Assessment 2nd Schedule Study for the
proposed Reclamation & dredging works for the penang south reclamation (PSR) retrieved from
http://anyflip.com/zxcu/zmtw

E. Teh (2019) What is the Penang South Reclamation (PSR)?, in A penang forum series, reclamation : a ticking
time bomb, retrieved from https://penangforum.files.wordpress.com/2019/09/what-is-the-penang-south-
reclamation-psr-1-2.pdf

S . Y Chee et all (2017) Land reclamation and artificial islands: Walking the tightrope between development
and conservation.

J. W. S. Zeng,(2020), Evaluating the Penang South Reclamation (PSR) Project According to the United
Nations’ Sustainable Development Goals retrieved from https://penanginstitute.org/publications/issues/
evaluating-the-penang-south-reclamation-psr-project-according-to-the-united-nations-sustainable-development-
goals/

S. Khoo (2020), Save Penang! Reject the 3-Islands Reclamation! retrieved from https://www.change.org/p
/prime-minister-of-malaysia-save-penang-reject-the-3-islands-reclamation?signed=true

A.H. Embong (2015) , Environmental Justice In Malaysia: Issues And Challenges

N. Mohammad ( 2011), Environmental Law and Policy Practices in Malaysia: An Empirical Study

S.Loone (2017), EIA report on Penang reclamation projectfinally on display, retrieved from
https://www.malaysiakini.com/news/383384
list of references
A. Dermawan (2019), Penang details 72 DoE conditions for PSR project, The New Straits Times,
https://www.nst.com.my/news/nation/2019/07/504839/penang-details-72-doe-conditions-psr-project

https://www.malaysiakini.com/letters/496247

https://pg-mdc.com/main/

https://www.lonelyplanet.com/articles/biodivercity-malaysia

https://www.hmetro.com.my/mutakhir/2019/11/513817/bantahan-nelayan-aktivis-tolak-tambak-metrotv
Penang2030, A Family-Focused Green and Smart State that inspires the nation, first edition (2019)
www.penang2030.com

A.R Khalid & L.Audrey (2009) Environmental Economic Policy in Malaysia


http://www2.kankyo.tohoku.ac.jp/frontier/pdf_for_workshop_etc/100311Abstract(Khalid&Audrey).pdf

Environment Law - Environmental and Natural Resources Law, available at


http://www.hg.org/environ.html.

ASEAN Declaration on Environmental Sustainability- https://asean.org/?static_post=asean-declaration-on-


environmental-sustainability
T h a n k y o u

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