Paramount to build 350 homes at Butterworth’s Ujong Batu
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- Paramount Corporation’s Paramount Property (Butterworth) has signed a development agreement with the Penang State Housing Board to redevelop Kampung Ujong Batu, about 15.3 acres in Butterworth. Phase 1 is 350 Rumah MutiaraKu homes of about 750 sq ft.
- 268 of the homes go free to eligible residents and the rest will be sold to registered buyers. The state chose Paramount by direct negotiation after three calls for proposals drew no bidders.
- No development value, timeline or land terms have been given; layout plans and planning permission come next.
Paramount Property (Butterworth) Sdn Bhd, part of Paramount Corporation Bhd, has signed a development agreement with the Penang State Housing Board (LPNPP) to redevelop Kampung Ujong Batu in Butterworth, Seberang Perai Utara. The site covers about 15.3 acres (6.19 ha). The signing took place on 25 October 2026 at The Light Hotel, Seberang Jaya, witnessed by Chief Minister Chow Kon Yeow.
The project will be built in phases. The first phase is 350 Rumah MutiaraKu affordable homes.
The first phase
- Homes: 350 units of about 750 sq ft each, said state housing committee chairman Datuk Seri S. Sundarajoo
- Residents: 268 units will go free to eligible households now living on the site; the rest will be sold to registered buyers, with a rent-to-own option
- Parking: every unit will have a parking bay, said Bagan Dalam assemblyman K. Kumaran. Residents turned down earlier proposals because the units were small and lacked parking
- Ground: soil tests show piles must go down about 30 metres, so building costs will not be low, Sundarajoo said
Why it went to direct negotiation
- Three calls, no bidders: LPNPP invited proposals from 8 November 2024 to 17 February 2025, from 4 April to 5 August 2025, and from 12 November 2025 to 2 February 2026. Nobody took part
- Change of method: the state executive council on 22 April 2026 and LPNPP's procurement board on 7 May 2026 agreed to award the job by direct negotiation. Paramount then said it was interested
- The state's terms: Chow said eligible residents get free homes, and the state only wants to recover the land cost borne by the private developer, without making a profit on social housing projects
- Still to come: layout plans and planning permission. The deal remains subject to planning and regulatory approvals
The site
The state first set out the plan in December 2024, at a session with residents of Lot 20087. It then counted 340 squatter homes on 15.23 acres of state land, 268 of them eligible for replacement homes. The site lies next to Jalan Bagan Dalam, Jalan Assumption and the Butterworth Outer Ring Road, near the Kampung Manis and Kampung Main Road redevelopment area.
The 2024 plan was larger: a first phase of 300 replacement units and 500 affordable homes, with shops, community facilities and car parks, then a mixed development in phase 2. The new first phase has 350 homes in total.
Paramount in the north
- Existing projects: Utropolis Batu Kawan (homes, shops and education), Paramount Embun Hills in Bukit Mertajam and Paramount Palmera, a light industrial park in Bukit Minyak
- Bandar Cassia (July 2025): 18.97 acres of freehold land bought from the Penang Development Corporation for RM57.84 million; serviced apartments, semi-detached townhouses and shop offices worth RM744 million, built from 2027 to 2033
- Bandar Lunas, Kulim (August 2025): 295.55 acres of freehold land for RM128.74 million, about 4 km north of Kulim Hi-Tech Park Phase 4A; a RM946 million township with homes, shops and industrial lots, to launch in 2027
What is not known yet
- Value and timeline: no development value, building dates or later phases have been given
- Land terms: what Paramount pays for the land, or how the land cost is recovered, has not been disclosed
- Site area: Paramount gives 15.3 acres; the Chief Minister's speech said 15.87 acres and the 2024 census 15.23 acres
- Bursa: Paramount announced the deal by media release only; it has not filed it with Bursa Malaysia
The numbers
- Free homes: 268 of 350 units, or 77%, go to existing residents; about 82 units are left for sale
- Change from 2024: 350 first-phase homes now, against 800 (300 replacement + 500 affordable) in the 2024 plan
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