SkyWorld Development CEO Lee Chee Seng.
KUALA LUMPUR: Property developer Skyworld Development Bhd
has tied up with the Penang Development Corp (PDC) to jointly develop the country’s largest affordable-housing project, worth RM13bil, in Penang.
The real estate firm signed a joint development agreement with PDC, as well as its subsidiary, PDC Properties, yesterday, for the development of Rumah Bakat Baru Madani located in Seberang Jaya and Batu Kawan.
Spanning close to 200-acres of land, the development will consist of two residential blocks catered to the B40 and M40 groups.
Set to become the largest affordable housing development in Malaysia, the block in Batu Kawan will be offering 30,000 units, while the one in Seberang Jaya will hold about 6,000 units.
With a combined offering of about 36,000 units, SkyWorld chief executive officer Lee Chee Seng said the project will act as a cornerstone of the Malaysian government’s commitment to deliver 500,000 affordable homes by 2025, as included in the Twelfth Malaysia Plan (RMK12).
As of October 2024, 89% of the target has been reached, with 443,259 units completed.
Lee said the affordable housing market will continue to be robust in the next five years.
“We will continue focusing on the affordable housing market because we believe that this addresses the issue of affordability in the coming years,” he said.
When asked about the total investment of the development, Lee said: “if we are talking about just the land cost itself, then it is about RM500mil. Additionally, there will be another 20% of consulting services and fees that we have to pay”.
Projected to span a 10-year development period, SkyWorld is expected to generate a total gross development value worth RM13bil from the entire project.
Lee shared that the group incorporates a specific analysis practice when it comes to developing its affordable housing projects.
This includes the cross ventilation analysis as well as daylight analysis.
According to him, by analysing specific factors and ensuring that certain criteria are met, it allows SkyWorld to build the affordable developments that it has today.
“A main issue for homebuyers when it comes to high-rise properties are the expensive maintenance costs. By ensuring that our development provides sufficient sunlight and proper ventilation, we can actually cut down on maintenance costs.
“Like other developments, this analysis will also be incorporated into our new project in Penang as well,” he said.
Lee added that SkyWorld will also be introducing industrialised building system (IBS) 3D-prefabricated prefinished volumetric construction (PPVC) technology, of which the group will be collaborating with an international IBS technology manufacturer to develop the project in Penang.
Despite not disclosing further on the partnership, he said the application of IBS 3D-PPVC technology will increase development quality and reduce delivery time.
“This will also be the first for the technology to be applied in a development in Malaysia,” he said.
Lee then highlighted the location of the development, which he considered “fits perfectly” in the prime location in Penang’s economical landscape.
Known as a hot spot for electrical and electronics international players, Lee said the project also opens opportunities for young and skilled workers to buy houses.
“People have been going to Bayan Lepas and I think that location is already too packed. So for this new location, I believe this is a very convenient step for homebuyers to be close to their workplace and still enjoy a comfortable and healthy lifestyle,” he said.
SkyWorld made its entry into the affordable housing scene back in 2014 following the successful launch of its first affordable home series in Sentul, SkyAwani 1.
This was followed by the launch of four additional developments under the SkyAwani Series, as well as its latest Perumahan Rakyat 1Malaysia (PR1MA) development announced in August 2024.
Additionally, Lee stated that SkyWorld is confident in its ability to proceed with less than 40 days of approval in terms of project documentation and submissions.
“If you ask me whether we can cut down the timeline to less than 40 days, we are confident, especially with the help of all parties. Whether it’s discussing with the government, the private sectors, or local authorities – we have to work together in order to get things done”.
The statement comes following Prime Minister Datuk Seri Anwar Ibrahim’s call-to-action for property developers to increase the efficiency and completion of affordable housing projects. He stated during a speech that “there should be no reason to delay such projects when proper documentation and submissions have been made”.
“I had the experience of a groundbreaking ceremony of an affordable housing development in Kuala Lumpur that took place within 45 days after the joint development agreement was signed. This showed how efficiency can make things possible. If it can be done in Kuala Lumpur, I’m sure Penang can, too,” Anwar said.
The signing ceremony was also witnessed by Housing and Local Government Minister Nga Kor Ming, Penang Chief Minister Chow Kon Yeow, PDC chief executive Datuk Aziz Bakar, PDC Properties chief executive Ismail Ishak and SkyWorld founder and executive chairman Datuk Seri Ng Thien Ping.
During his speech, Nga said the Rumah Bakat Baru Madani project aligned with the Madani pillars of sustainability and harmony.“I always emphasise that affordable housing is not only to meet the needs of current demands, but also the future. It should not just be livable, but must also be loved,” he said.Meanwhile, Chow highlighted the significance of this development within the state’s Penang2030 vision, which prioritises liveability and socioeconomic growth.
“The Rumah Bakat Baru Madani concept is a game-changer. It offers opportunities for both Penangites and non-Penangites working here to own homes, ensuring inclusivity and equity in housing,” he said.
This is in line with addressing the heightened demand for affordable homes following the state’s economy, which continues to attract domestic and international investments as well as talents.
