Last updated on 29 May 2012 – 08:42am
Himanshu Bhatt
newsdesk@thesundaily.com
GEORGE TOWN (May 28, 2012): The proposal to restore the free port status for Penang, announced by newly appointed state Barisan Nasional chairman Teng Chang Yeow recently, may not cover the whole island after all.
The state BN political committee today discussed a proposal to designate a duty-free zone on a proposed 1,210ha reclaimed area under the Penang Port on the mainland.
Committee member Datuk Seri Dr Hilmi Yahaya, who is also Penang Port Sdn Bhd chairman, said the plan would site a CIQ (customs, immigration and quarantine) zone that would bring economic spin-offs to the state.
The designated duty free zone includes a halal hub, a commercial complex, a hotel, free industrial zone, oil and petroleum storage facilities, and a ship repair centre, he said after the meeting, adding that a proposal had already been submitted to the Finance Ministry by Penang Port.
Teng had told a BN press conference on May 14 that he has spoken to Prime Minister Datuk Seri Najib Abdul Razak about reviving Penang’s free port status, which was abolished by the federal government in 1969. However, its implementation would only be pursued once BN becomes the state government.
Hilmi, however, said the scenario had changed since 1969, with the development of a thriving free industrial zone in Penang, and Malaysia’s free trade agreements with Asean and Australia.
“If you talk about free port status, it cannot be like before where the whole island would be duty-free,” said the former deputy chief minister.
“A lot of tourism items are already tax-free, except for cigarettes and liquor,” he stressed.
Also present was political committee chairman Datuk Dr Teng Hock Nan, who is also Penang Gerakan chief.
Hilmi said having a CIQ at Penang Port would be a better option than making the island duty-free, pointing out that it would create up to 100,000 new jobs.
He added that the CIQ plan would be implemented faster if the BN won the state government as matters pertaining to land and reclamation come under the state’s jurisdiction.
On another matter, Hilmi said the port authorities are identifying a new site for a Hindu temple that was demolished on port land near the Prai Bulk Cargo Terminal in April which had caused angered the people.
He said the sites being identified are at least 1.5km away from dangerous cargo such as liquefied petroleum gas stored at the port.
“It is wrong for the state’s chief executive to behave like that. He should help resolve the problem with me as the port chairman,” Hilmi said.