<figure id="attachment_3224139" aria-describedby="caption-attachment-3224139" style="width: 1600px" class="wp-caption aligncenter"><img loading="lazy" class="size-full wp-image-3224139" src="https://media.freemalaysiatoday.com/wp-content/uploads/2025/11/b0d8d1b3-tropicana-218-macalister-fbpic-301125.webp" alt="Tropicana 218 Macalister " width="1600" height="1000" /><figcaption id="caption-attachment-3224139" class="wp-caption-text">An activist who said developers were already allowed to offer floor space that was five times the land area of the property, gave the &#8216;Marriot hotel&#8217; in Macalister Road as an example of scale. (Facebook pic)</figcaption></figure>
GEORGE TOWN: Unknown to the public, a quiet move by the authorities in Penang could allow developers to put up taller and denser towers by shifting unused building rights from one plot to another, according to a noted activist.
Heritage campaigner Khoo Salma Nasution said most Penangites had never heard of this idea, called transfer of development rights, even though it was already being discussed in developer circles.
She said that the concept of transferable rights was not recognised in planning law and could be challenged in court.
Clues about the policy were seen in the draft 2030 Penang island local plan shown to the public in 2022 before it was binned, she said. Even though the draft plan was no longer in effect, the idea of transferable rights it contained “seems to be happening even though nobody knows about it”.
<figure id="attachment_3224138" aria-describedby="caption-attachment-3224138" style="width: 1600px" class="wp-caption aligncenter"><img loading="lazy" class="size-full wp-image-3224138" src="https://media.freemalaysiatoday.com/wp-content/uploads/2025/11/29b44ee7-activist-khoo-salma-fmt-301125.webp" alt="" width="1600" height="1000" /><figcaption id="caption-attachment-3224138" class="wp-caption-text">Khoo Salma Nasution speaking at the &#8216;Speak Up for Penang&#8217; forum in George Town today.</figcaption></figure>
Khoo said several people in the industry had told her they were aware of the mechanism despite no public announcement being made or clear policy announced.
She said the draft local plan had contained “a few pages” on how extra building rights from one area could be moved and added to another. “I have to say there is a basis for us to think that this is happening because it has never been announced,” she said at the &#8220;Speak Up for Penang&#8221; forum held here today.
Khoo then asked why the public were kept unaware: &#8220;How come developers know about it, but we don’t?&#8221;
She said the scheme works like a swap, in which unused air space over a low rise heritage zone is &#8220;transferred&#8221; to another site, allowing that second site to exceed normal limits, resulting in taller buildings.
Khoo said the base density in Penang already allows a five-plot-ratio for buildings, by which developers would offer floor space that was five times the land area &#8211; “the same scale as the Marriott on Macalister Road”. The Marriot hotel with 208 rooms occupies a 22-storey building on a 2.1 acre site, together with another tower comprising 211 commercial suites and 88 serviced apartments.
She said adding on extra credits would make buildings even taller.
Khoo said the idea could only function if base zoning was included in a local plan. However, no local plan has been gazetted for Penang Island and Seberang Perai so far, which raises concerns about transparency because the public does not know which areas can “give” or “take” extra rights, how credits are valued or whether any record exists.
FMT has sought comments from the state government and Penang Island city council.

MatchPoint Times

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