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NGOs respond to Gamuda Bhd

  • Publication Date | May 17, 2023
  • Document Type | Media Statement
  • Programmes | Development & Planning
  • Issues | Coastal Development, Development, Fisheries, Food Sovereignty, Planning, Reclamation, Urban Development
  • Tags | EIA, Penang, Penang South Reclamation, PTMP
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Scrap the PSR project! | Image: © SAM
This is a joint statement by the Sahabat Alam Malaysia, Consumers’ Association of Penang and Penang Forum, in response to the statement released by Gamuda Bhd on 16 May 2023 on the Penang South Reclamation project

We refer to the media statement by Gamuda issued on 16 May, 2023. Gamuda’s defence of its Penang South Reclamation (PSR) project is self-serving and unsustainable. It has a vested interest in the mega reclamation project, expecting to make millions, perhaps billions, of profit. Therefore, its claims of the project benefitting the public must be taken with a pinch of salt.

The Penang state government appointed Halcrow, the transport consultants with vast experience, to prepare a transport blueprint for Penang. After public consultation, it came up with the Penang Transport Master Plan (PTMP) based on sustainable mobility, moving people rather than cars, and costing RM10 billion spread over a period of time. The state government wanted additional highways and a tunnel and the cost shot up to RM27 billion.

The Gamuda-led consortium (SRS) of engineering contractors and developers were appointed to implement the Halcrow plan. SRS radically departed from the Halcrow plan and ditched the recommended BRT (bus rapid transit) and tram for a monorail, LRT and additional highways. It also proposed the mega reclamation to finance the PTMP through the sale of plots of reclaimed land. The estimated cost zoomed further from RM27 billion to RM46 billion. Under the agreement with the state, SRS was to receive 6% of the total cost, which is RM2.76 billion.  

Later, in 2021, the Penang government entered into an agreement with SRS to form a joint-venture company, with the state holding 30% equity and SRS 70%, to carry out reclamation work under phase one of the PSR.  Now that the federal government has agreed to finance the PTMP to overcome traffic congestion, why is Gamuda pressing for the reclamation project. Do we need it and how will it benefit the people? 

Gamuda claims that the latest Environmental Impact Assessment (EIA) went through a rigorous process and should be accepted and those disagreeing with it should go to court to challenge it.  This is a red herring. Firstly, before any project is approved there must be a need for it in the public interest. Despite repeated demands by civil society organisations, the state government has failed to justify the reclamation. Initially it claimed it was needed to finance PTMP. That reason doesn’t exist anymore with the Unity Government in power. If land is needed for development, there are 12,000 hectares available in Seberang Perai.

Secondly, the EIA is flawed. It did not take into sufficient consideration that the project will result in the destruction of an important fishery in Penang which provides income for over 3,000 people and their families, and food – fish, prawns, crabs and other marine life – for the consumers. 

In a letter on 25 June 2019, the former Department of Environment director-general advised the state government that the Penang South Reclamation will “cause permanent and residual impacts on mudflat ecosystems, fishing grounds, turtle landing areas, and some coral reefs in Pulau Rimau. This permanent destruction will have a significant negative impact on fisheries resources, fisheries and the security of national food supply”. Despite this warning, the EIA for the reclamation project was approved. That speaks volumes for the independence and objectivity of the EIA process.  

Gamuda claims that over 93% of public comments on the EIA favoured the reclamation project. This is not a popularity contest. Those who approved the EIA should have scrutinised the grounds given by informed and knowledgeable CSOs and individuals for objecting to the project and give reasons why they were not accepted. They have not done so.   

In addition, the company’s claims that “the PSI project has secured a high Social Impact Assessment approval rating of 79.1% from the local community, and more specifically, the support of 74.8% of the local fishermen,” was challenged during the EIA feedback process, as being exaggerated and misleading, and without proper basis. We pointed out that the sample size was way too small for such conclusions. All this were ignored, including opposition to the project by the State Fishermen’s Association, PEN-MUTIARA that represents 6,000 members.

In fact, we were shocked at the so-called ‘economic valuation of the environmental impacts’, which we have pointed out, is a gross economic undervaluation. For example, the latest approved EIA quotes the unit price of shrimps as RM6,000 a tonne in 2022, which works out to RM6 a kilogramme! This is indeed unbelievable, for anyone who buys shrimps will tell you that the unit price is at least 10 times higher than what is stated in the EIA. Yet, such gross undervaluation is allowed in the EIA!   

As regards the Ecology Offset Masterplan, Gamuda claims that the programme is designed to enhance marine biodiversity in the project vicinity. From what we have read, these are experiments which are being proposed to recreate what will be lost irreplaceably forever, like the mudflats, coral reefs and fishing grounds, which are classified as “trade-offs”, when in reality, what is being done is to write them off in perpetuity. 

Destroying such natural and important ecosystems and replacing them with fake speculative options with the hope of enhancing marine biodiversity is highly irresponsible and unacceptable to us. This is not development but destruction! 

We continue to maintain that the PSR project is unjustifiable. We stand firm in our opposition to the unwarranted PSR, and once again reiterate our call and appeal to the federal and state governments to scrap the PSR project!

We do not need a FANTASY Island! 

Mohideen Abdul Kader, Consumers’ Association of Penang
Meenakshi Raman, Sahabat Alam Malaysia
Khoo Salma, Penang Forum

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Testimonials

Sahabat Alam Malaysia adalah satu badan bukan kerajaan (NGO) yang telah sekian lama berjuang mempertahan kelestarian alam. Ia juga mendidik masyarakat tentang pentingnya kebersamaan dalam pemikiran dan tindakan agar alam ini dapat kita wariskan kepada generasi hadapan dalam keadaan yang elok dan terpelihara. Dalam pada itu juga SAM giat membantu golongan nelayan pantai dalam memperjuangkan hak-hak mereka sehinggalah tertubuhnya Persatuan Pendidikan dan Kebajikan Nelayan Pantai Malaysia (JARING). Nelayan pantai sepenuh masa ini dididik oleh SAM sehingga mereka mampu memainkan peranan sebagai pemimpin nelayan yang meneruskan kesinambungan memperjuangkan hak-hak nelayan pantai lainnya. Sebagai contoh SAM telah berjaya menyedarkan masyarakat nelayan keperluan menjaga hutan paya bakau untuk kebaikan hasil tangkapan nelayan itu sendiri.
Jamaluddin Mohamad Bualik
Jamaluddin Mohamad BualikPersatuan Pendidikan dan Kebajikan Jaringan Nelayan Pantai Malaysia (JARING)
During the 1980s, I used to read about the Consumers’ Association of Penang (CAP) in the news. After retirement, some time in 2001, while lazing around, I read news about the construction of a carbon in leach plant using sodium cyanide to extract gold in Bukit Koman. My friends and I visited CAP and we were introduced to SAM and her legal team. We discussed the details of filing a case against the gold mining company and the department of environment with Ms Meenakshi Raman and her legal team. That was the beginning of a beautiful friendship between lawyers from SAM and many of us from Bukit Koman. We had many ups and downs in our struggle to shut down the gold mine that was causing a nuisance in our village. But, as a community we never gave up because SAM had our backs.
Hue Fui How
Hue Fui HowSecretary, Bukit Koman Ban Cyanide in Goldmining Action Committee (BCAC)
Sahabat Alam Malaysia adalah sebuah NGO yang memperjuangkan nasib masyarakat luar bandar khasnya. SAM menerima aduan-aduan masyarakat dan menyelesaikan masalah yang dihadapi. SAM telah mewujudkan ramai aktivis-aktivis sosial dan alam sekitar. Pada era 1980 dan 90an SAM sangat dihormati oleh masyarakat dan agensi kerajaan. Apabila media sosial menguasai maklumat maka SAM pun terkesan dan masalah masyarakat terus disalurkan dengan pelbagai cara. SAM perlu mewujudkan aktivis-aktivis pelapis yang muda untuk terus membantu masyarakat. SAM juga perlu membuat perubahan supaya banyak turun kelapangan dan jangan mengharapkan laporan media sahaja. Tingkatkan prestasi sebagaimana pada zaman kegemilangan SAM di era 80-90an.
Che Ani Mt Zain
Che Ani Mt Zain
SAM taught me the importance of social activism and the role it plays in upholding the rights of people and the protection of the environment. In my experience, SAM has never hesitated to speak up in defence of people and their environment, and has gone the extra mile to champion their rights, by helping communities take their battles to the higher ups and even to the courts.
Jessica Binwani
Jessica BinwaniPublic/Private Interest Lawyer
Semenjak kami kenal SAM, banyak pengalaman dan pengetahuan yg kami dapat. Kami telah belajar cara membuat baja asli daripada SAM. Semenjak itu, bermulalah minat kami dalam aktiviti pertanian. Dengan memperolehi kemahiran dalam membuat baja asli dan penanaman lestari, kami juga telah dapat menambahkan pendapatan sampingan kami. Ini lebih baik daripada tanah kami terbiar dan tidak diusahakan. Terima kasih SAM kerana sudi memberi bantuan dan tunjuk ajar kepada Persatuan kami.
Chedo Anak Nyuwen
Chedo Anak NyuwenPersatuan Penduduk Sg Buri, Bakong, Marudi
My journey with SAM started when her community organisers took me to the meet the paddy farmers of Kedah, connecting my growing interest in environmental law with our people who struggle to work the land in the face of pollution, replacement of traditional seeds with commercial hybrids and their accompanying chemical package of fertilisers and weedicides. I then had the honour to work with SAM in the struggle for the rights of the native communities of Sarawak, in defence of their forests from massive logging and destructive mega-projects. In every issue that SAM takes up, she combines rigorous research with the realities and voices of the communities to advocate for policies and laws that care for people and nature. From the courts to the elected legislators to policy makers and implementers and to the United Nations, SAM walks side by side with the communities in Malaysia. How can I not be inspired by the vision and passion of the generations of women and men who coalesce to form SAM?
Chee Yoke Ling
Chee Yoke Lingstudent of SAM, Executive Director of Third World Network, SAM’s sister organisation

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Sahabat Alam Malaysia (Headquarters)
No. 1, Jalan Joki, 11400 Penang,
Malaysia
Tel: +604 827 6930
Fax: +604 827 6932

Sahabat Alam Malaysia (Marudi Office)
129A, First Floor,
Jalan Tuanku Taha,
P.O.Box 216,
98058 Marudi, Baram, Sarawak,
Malaysia
Tel & Fax: +6085 758 973

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