MSM sugar refinery in Prai secures a new 15-year lease amid Kampung Manis redevelopment

The sugar refinery operated by MSM Malaysia Holdings in Prai will continue its operations under a renewed 15-year lease on land owned by Railway Asset Corporation. RAC chief executive Datuk Azhar Ahmad clarified that the refinery is not part of the Kampung Manis redevelopment and will stay functional while a lease agreement is finalized. The declaration was made at a signing ceremony for Rumah MutiaraKu housing units, aimed at relocating Kampung Manis residents, with Penang Chief Minister Chow Kon Yeow and State Housing and Environment Committee chairman Datuk Seri S. Sundarajoo present.

Previously, the Ministry of Transport signaled a cabinet application to extend the refinery's lease, responding to FELDA's appeal for a further 30-year extension, citing the refinery's strategic location for the national sugar industry. The refinery has been operational since 1964, benefiting from proximity to the port and railway lines.