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Silicon Island is a man-made islet currently under Land reclamation off the southern coast of Penang Island in the Malaysian state of Penang. It is located off the shoreline of Penang Island and lies within the jurisdiction of George Town.
Although ongoing reclamation works for Silicon Island officially commenced in 2023, the project, part of the Penang South Islands (PSI) master plan, had been in planning since 2015, and faced delays due to socioeconomic concerns and political developments. Silicon Island will cover an area of and is intended to serve as an extension of the Bayan Lepas Free Industrial Zone (Bayan Lepas FIZ). Reclamation of the islet is targeted to be completed by 2032.
In November that year, Chow Kon Yeow, who was the Local Government, Traffic Management and Flood Mitigation Executive Councillor, confirmed that the southern coast of Penang Island had been identified for land reclamation to fund the PTMP. Reclamation of the area was projected to bring a five-fold economic multiplier effect, estimated at RM100 billion, and would provide additional space for any expansion of the Bayan Lepas Free Industrial Zone (Bayan Lepas FIZ).
SRS Consortium, consisting of Gamuda Berhad as the majority shareholder, Penang-based Loh Phoy Yen Holdings and Ideal Property Development, was appointed as the PDP for the PTMP. Following the appointment, the Penang South Reclamation (PSR) scheme was introduced, involving the reclamation of three islets off southern Penang Island. The reclaimed islets would be fully owned by the state government and auctioned off to finance the PTMP. The state government estimated that the sale of the reclaimed islets could generate RM70 billion in revenue and cover the cost of PTMP.
The PSR became a political issue during the elections that year, with the incumbent Barisan Nasional (BN) federal government led by Najib opposing the reclamation project on the grounds of safeguarding the livelihoods of affected fishermen. The PSR, along with the PTMP, was included in Pakatan Harapan's (PH) 68-point election manifesto for Penang. Following PH's electoral victory, there was an expectation that the PSR and PTMP would both receive federal approval.
A revised EIA was submitted in 2019 and subsequently granted conditional approval by federal regulators, which included an 18-point advisory aimed at mitigating potential impacts on the local community. In 2020, the PSR was rebranded as the Penang South Islands (PSI). Concurrently, a design competition was held, which was won by a multidisciplinary team that included Bjarke Ingels Group, Hijjas Kasturi Associates and Ramboll.
The federal election in 2022 resulted in a unity government headed by PH chairman Anwar Ibrahim. In April 2023, federal regulators regranted approval for the PSI, after which the state government withdrew its appeal for judicial review. In May, Prime Minister Anwar announced federal funding to expedite the development of the Mutiara line, one of the key components of the PTMP. Following Anwar's request to reevaluate the PSI, the state government, under Chief Minister Chow, decided to scale down the project from three to one islet. The remaining islet was rebranded as "Silicon Island".
Ahead of the 2023 state election, Perikatan Nasional, of which PAS is a member, pledged to scrap the PSI if elected to power. Ultimately, a PHBN coalition retained control of the state government.
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