Asia Pacific Land Bhd area director for property and project/construction management, Loke Mun Kit, said his company was “not alone” in lamenting that approval for development projects took a long time in the State.

He said: “There is a general feeling among developers with projects in Penang and other States that approval in Penang is the toughest of all.”

Loke was speaking on behalf of property developer and Low Yat Group executive chairman Tan Sri Low Yow Chuan, who is also Asia Pacific Land group adviser, at his office in Jalan Tun Razak yesterday.

He was responding to Penang State Local Government Committee chairman Datuk Dr Teng Hock Nan’s statement in the New Straits Times yesterday that the State was “pro-business” and would continue to be so.

Dr Teng had said Low’s plan to stop investing in Penang, which was reported in the newspaper on Monday, was unfair and regrettable.

He had also said that the project highlighted by Low in the newspaper was not delayed by bureaucratic red tape but by Low’s company’s decision to postpone construction eight times.

Loke said: “We proposed a 23-storey hotel and two-storey basement car park in Jalan Sultan Ahmad Shah and we submitted a Development Order (DO) application in December 1992 and approval was granted in June 1995.

“Our building plans were not approved within the validity period of the DO approval (one year), and as a result, the Penang Island Municipal Council (MPPP) extended the DO six times.

“The plans were finally approved in March 1999.

“However, due to the non-viability of the hotel market in Penang at that time, we had to consider converting our proposed hotel into a mixed service apartment and condominium.

“The site was within the Heritage Zone, thus, we were told to reduce the building’s height to eight storeys.

“The local authority had not given us clear guidelines on our proposal, despite the fact that we asked about these guidelines much earlier.”

Loke also referred to a proposed four-storey development project in Batu Ferringhi.

He said they applied for a DO for the project in September 1998, but it was rejected in July 2001.

He said: “A second application was submitted in September 2002 and approved in February this year. The entire application took seven years.”

Loke then referred to a proposed 101-unit bungalow project in Batu Ferringhi.

He said: “Our DO application was made in November 2002. To date, we have not obtained the DO approval. This is contrary to Dr Teng’s statement that the project was approved in two years and three months.”

Referring to a proposed 121-unit apartment and 18-unit villa project in Batu Ferringhi, he said: “DO approval was obtained in August 1997. Our revised building plan was submitted in July 2002.

“Until today, building plan approval has yet to be granted. It is nearly eight years.”

Loke reiterated Low’s call that he was giving “constructive criticism” to the State Government, and a “wake-up call” to the local council to appreciate developers’ concerns.

“We, developers, want speedy approval of projects, as this will boost the State’s economic growth.

“Land holding costs, plus consultancy fees and overheads are substantial, amounting to millions of ringgit,” he said.

“The State Government must approve projects within a reasonable time because while it can wait, the market cannot.”