Chief minister Chow Kon Yeow said the strategy has turned unused land into a source of steady income for the state government.
He said requests for proposal are also carried out to develop unused state land.
An RFP is a project announcement posted publicly which solicits bids from qualified contractors to complete it.
“CMI made money from idle state land through RFP calls, short-term rentals, and long-term leases.
“This creates passive income for the state government, as it does not involve any costs for the state but still generates returns,” he said in his winding-up address on the 2025 state budget at the state assembly today.
Chow said CMI had also invested RM2.08 billion in private ventures, and expects to make RM289.88 million in the long-term.
“All proceeds from CMI’s initiatives are channelled directly back to the state government, with minimal costs incurred,” he said.
He said CMI had carried out improvements at Wisma Yeap Chor Ee, a heritage building previously managed by the Penang Development Corporation.
Between 2014 and 2019, PDC spent RM13.5 million on maintenance of the building, but only earned a revenue of RM292,000, which led the state to hand over its management to CMI in 2020.
Since taking over, CMI has spent RM2.7 million on upgrades and maintenance to Wisma Yeap Chor Ee and has earned RM939,000 in revenue over the last three years.
Chow said the Penang Digital Library, also under CMI, has generated RM913,400 in revenue, which was likely due to the fact that there are no entry fees, despite an investment of RM19.3 million since 2016.
The library is an initiative by the Penang government to promote STEM education, and is built in several locations – George Town, Butterworth and Batu Maung – with plans for a new TVET-focused library in Bukit Mertajam by 2026.
He also said the state is considering whether to introduce entry fees to offset high operational costs. - FMT
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