______C 2 - S T A T E M E N T O F N E E D & P R O J E C T O P T I O N S______P E I A – M i x e d D e v e l o p m e n t, P a d a n g S i d i n g ■ F o r A n g g e r i k W a n g i S d n. B h d.

CHAPTER 2: STATEMENT OF NEED AND PROJECT OPTION

2.1 INTRODUCTION

This chapter will discuss on the social and economic factor to support the establishment of this project. The need of the project is justified as below:

 Local Plan zoning for development  Land use Optimization  Demand of Development  Employment opportunities

2.2 STATEMENT OF NEEDS

2.2.1 Local Plan Zoning for Development

The proposed mixed development on Lot 8431 with 264.36 acre will be developed by Anggerik Wangi Sdn. Bhd. (AWSB). Genggam Banga Sdn.Bhd. owns the proposed land and has appointed AWSB for the planning and development of the project in the land. The proposed project will consist business lots, housing lots, shop lots, sports complex, medical centre and few others facilities.

According to Draft “Rancangan Tempatan Majlis Perbandaran (RTMPK) 2009-2020”, Kangar is divides into four (4) planning blocks as in Table 2.1 and illustrated in Figure 2.1. The project site (Lot 8431) is categorized within Planning Block 2 (BP2) - Padang Besar - Pauh. As such the development of Lot 8431 was strategized according to the development plans of BP2.

Table 2.1 show that the project site is located on BP2 (BP2.2) in RTMPK which is the second largest area of planning blocks in . In BP2 planning, there will be more residential area developed as shown in Table 2-2.

V E L C R O E N G I N E E R I N G & E N V I R O N M E N T A L • C2-1 ______C 2 - S T A T E M E N T O F N E E D & P R O J E C T O P T I O N S______P E I A – M i x e d D e v e l o p m e n t, P a d a n g S i d i n g ■ F o r A n g g e r i k W a n g i S d n. B h d.

Table 2.1- Planning Block for Kangar Municipal Council

Planning Blocks Name of Planning Blocks Area(ha) Percentage

Planning Block 1 - 26,7880.40 32.69 Planning Block 2 Padang Besar-Pauh 20,206.50 24.66 Planning Block 3 Kangar – 17,045.20 20.80 Planning Block 4 Simpang Empat-Kuala 17,891.10 21.83 (Source: Draft RTMPK, (2009-2020))

Table 2-2: Proposed need of housing according to Planning Block 2008-2020

Total New Houses Needed Planning Block(BP) Need 2008-2010 2011-2015 2016-2020 Nett/Additional BP 1 (Kuala Perlis-Wang 2,166 173 624 2,963 Kelian) BP 2 (Padang Besar- 925 634 652 2,211 Pauh) BP 3 (Kangar-Arau) 5,241 4,734 6,598 16,573 BP 4 (Simpang Empat- (2,073) 1,117 1,206 250 Kuala Sanglang) Total units of new 6,259 6,658 9,080 21,997 residential Area (Hectare) 179.94 191.43 261.05 632.42 Total unit of houses in the 64,052 70,710 79,790 - final stage construction phase (Source: Draft RTMPK, (2009-2020))

V E L C R O E N G I N E E R I N G & E N V I R O N M E N T A L • C2-2 ______C 2 - S T A T E M E N T O F N E E D & P R O J E C T O P T I O N S______P E I A – M i x e d D e v e l o p m e n t, P a d a n g S i d i n g ■ F o r A n g g e r i k W a n g i S d n. B h d.

Proposed Project in the block planning

(Source: Draft RTMPK, (2009-2020))

Figure 2-1: Planning Block for Perlis according to RTMPK

Current land use status for the proposed project is agriculture as shown in Figure 2-2. However during 2020, the project site for the proposed project will be gazetted for business and residential plan as shown in Figure 2-3. This shows that this project is support and planned as in MPK Local Plan.

2.2.2 Land Use Optimization

The proposed project will optimize the usage of land within the area as at present the land area is covered with rubber tree and secondary vegetation. By implementing this project, the proposed project shall increase the productive yield as well as valuation of the land and property both for the project proponent and MPK.

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N

Project Site

Scale: Not to Scale

Legend

Residential Paddy International Boundary Rubber Business Paddy State Boundary Orchard Kuala Perlis-Changloon Highway Industrial Others Federal Road Government Road Religious Forest Railway Natural Vacant Area Safety River Utilities Infrastructure Health Water course/Aquaculture Public Facilities Mine /Quarry Education Cemetery

Sport and Road Recreation

(Source: Draft RTMPK, (2009-2020))

Figure 2-2: Current Land Use Status for the Project Site

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N

Project Site

Scale: Not to Scale

Legend

Residential Paddy International Boundary Rubber Business Paddy State Boundary

Industrial Orchard Kuala Perlis-Changloon Highway

Others Federal Road Government Road Religious Forest Railway Natural Vacant Area Safety River Utilities Infrastructure Health Water course/Aquaculture Public Facilities Mine /Quarry

Education Cemetery Sport and Road Recreation

(Source: Draft RTMPK, (2009-2020))

Figure 2-3: Future Land use Status for the Project Site

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Surrounding area of the proposed project is mostly covered by agriculture. There is no development of township surrounding area of the project site except at the southern boundary where there is on-going housing construction are being carried out. Therefore, with this project, it will expose the resident to the urban facilities without need to travel to Kangar or Arau which indirectly will reduce traffic congestion.

2.2.3 Demand of Development

It is predicted that by the year of 2020, there will be a total of 298,600 residents compare to year 2010 with total of 240,000 residents as shown in Figure 2-4. As recorded in RTMPK for BP2, it is predicted that approximately 1,286 units of new house (refer Table 2-2 for total new houses needed year 2011-2012) are needed to fullfill the needs of the ever increasing number of households and replacement of old units by the year of 2020. Therefore, the development blends well with the growing populations as estimated in RTMPK. Development of new houses indirectly will triggers demand for commercial development.

(Source: Draft RTMPK, (2009-2020))

Figure 2-4: Resident Growth Rate in Perlis for 2008 - 2020

V E L C R O E N G I N E E R I N G & E N V I R O N M E N T A L • C2-6 ______C 2 - S T A T E M E N T O F N E E D & P R O J E C T O P T I O N S______P E I A – M i x e d D e v e l o p m e n t, P a d a n g S i d i n g ■ F o r A n g g e r i k W a n g i S d n. B h d.

Due to development demand, southern part of the project site has been approved for housing development and government institution. This project will involve development of houses (terrace, double story, etc.), hall, mosques, shop lot and sports complex.

One of government support for this project is the development of the sport complex which will be used for the incoming SUKMA. This sport complex will be the main focus for any sports tournament in Perlis. With the development of the sport complex, it will assist the government in an effort to expose and involve citizen in international sport arena.

Other than that, component of the proposed land use and component of surrounding project site land use is supporting each other and this is important for sustainable development.

2.2.4 Employment opportunities

Implementation of the proposed Project will also create job opportunities and economic activities for the local population during the construction phase as well as the operation phase. During construction phase, job opportunities for labour, engineers and also contractor is available. However during operation phase, as they will be commercial lot proposed in this project, more jobs will be offered and available which indirectly could give opportunity for people of the nearest residential to improve their living income. Taxes and assessment for the local authorities can therefore increase budget allocation for them to enhance their projects and various programmes with beneficial social-economic impacts.

2.3 SELECTION OF THE MOST FEASIBLE PROJECT OPTION

Project options relevant to the proposed project may be divided into two aspects; the choice of site and the type of the development. The criteria for selecting the best options are related to the following considerations:

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 Environmental acceptability;  Economic values; and  Relevance to the government policy and local development strategy.

The followings provide the discussion for “No Project” option and Project development option.

2.3.1 “No Project” Option

The decision to abandon this project is a loss to the Mukim Padang Siding as it has potential to contribute to the economic growth as well as the population growth. The ‘No Project’ option will see the preservation of the private owned land. The absence of the project would mean objectives of the development project would not be achieved on the aforementioned site. The demand for housing for lower and middle-income earners and the opportunity to develop the area, which has potential, will also not be materialized. The ‘No Project’ option is not favored in term of economic and development planning of the area and its surrounding. Hence, the decision to opt for “No Project” is not recommended.

2.3.2 Option to Implement the Proposed Project

The area has been earmarked for development by the government and the proposed option to develop the area is highly recommended as the project will provide houses, shop lots and facilities. The intent to implement the proposed project is concurrent with the AWSB’s vision and development strategies. Besides, it will bring benefits in terms of providing job opportunities and profit to all parties involved. The need for the proposed project has arisen from the following factors:

 Meet the demand for residential located in a strategic area at BP2-Padang Besar-Pauh through effective utilization of land.  Increase the revenue of Perlis State through assessment and taxes.  Improve infrastructure and amenities.

V E L C R O E N G I N E E R I N G & E N V I R O N M E N T A L • C2-8