Melewar ... Oct 2008

The proponent of the Penang monorail, Melewar Industrial Group Bhd (MIG), is still trying to push through the project even after the federal government has said it will be staying out of the picture.

MIG chairman Tunku Datuk Ya’acob Abdullah said the company had approached the Penang state government with a proposal, but the latter has yet to get back to them.

Tunku Ya’acob said that while the state executive council was keen on the project in the beginning, they might be having second thoughts now. They are a little confused right now. Since they received the (Unesco) World Heritage status, they are having second thoughts on whether they even want a monorail.

Tunku Ya’acob said securing funding might be the biggest obstacle should the Penang government approve the project. It was likely they would go to the bond market to raise 70% of the estimated RM2.2 billion required, but would be looking for partners — local or foreign — to take up a stake in the project. The project would be privately funded, although the state government would be expected to donate some land in exchange for a 5% stake in the project.

However, it was still too early to tell if the project would materialise as the state government’s current position is unclear.