Pertanika J. Soc. Sci. & Hum.

22 (2): 349 - 367 (2014)

SOCIAL SCIENCES & HUMANITIES

Journal homepage: http://www.pertanika.upm.edu.my/

Urban Expansion and its Impact on Local Communities: A Case

Study of Seberang Perai, Penang, Malaysia
Samat, N.*, Ghazali, S., Hasni, R. and Elhadary, Y.
Geography Section, School of Humanities, Universiti Sains Malaysia, 11800 Penang, Malaysia

ABSTRACT
Urbanization is a major planning and policy concerning all spatial scales. This is due to more
than half of the world’s current population live in urban areas and overwhelming majority
emerges in developing countries. The adoption of industrialization policy has led to rapid
growth of urban population in the Asian countries including Malaysia. For an example, in
Penang State, urban population growth causes cities to be spreading into the countryside,
transforms non built-up areas into built-up areas and creates remarkable changes on the
physical landscape as well as on the socio-economic condition of the local community.
Thus, it is timely to investigate the impact of urban expansion at the peri-urban areas of
Penang State on the local communities. This study gathers data using both quantitative
and qualitative methods with 192 respondents, 12 in-depth interviews with senior citizens
and village leaders living within areas experiencing intense urban development. The study
finds that the local communities have more employment opportunities in both formal and
informal sectors and also experience better livelihood generated from urban development.
However, the expansion of built-up areas has put pressure on land and caused significant
loss of agriculture land affecting the likelihood of the farming communities at the peri-urban
area. Agriculture land size diminishes and becomes unprofitable. Consequently, farmers are
willing to sell their land in the hope for quick return. The findings from this study show that
appropriate planning policy needs to be devised in order to protect agriculture land at the
peri-urban areas and ensure that the local communities benefit from the urban development.

Keywords: Peri-Urbanization,Socio-economic impact, Malaysia, urban expansion

ARTICLE INFO INTRODUCTION

Article history:
Received: 28 March 2012 Currently, more than half of the world’s
Accepted: 22 July 2013

E-mail addresses:
population resides in urban areas and the
[email protected] (Samat, N.), majority is in the developing countries. The
[email protected] (Ghazali, S.), [email protected] (Hasni, R.),
[email protected] (Elhadary, Y.) number of urban population has increased
* Corresponding author

ISSN: 0128-7702 © Universiti Putra Malaysia Press

 Samat, N., Ghazali, S., Hasni, R. and Elhadary, Y.

dramatically from 200 million in 1900 to Subsequently, it brings negative impacts

about 2.9 billion in 2000. It is estimated on socio-economic conditions to the
to reach 5 billion by 2030 (Ademola and communities and environment.
Takashi, 2007). According to the United In many developing countries, including
Nations (2008), urbanization of the Asian Malaysia, urban expansion resulting from
and Pacific region will continue and a industrialization policy adopted since 1970s
majority of the region’s population will has attracted large group of young people to
live in urban areas by the year 2025. move to urban centres in the hope for greener
Furthermore, in the Pacific sub-region, over pastures (Ghazali, 1999; Abdul Samad Hadi
70 % of the population already lives in urban et al., 2010). This massive migration has
areas, while in the East and South-East put high pressure on the existing social
Asia, urban population is expected to reach services and become a challenge for the
the 50 % level before the year 2015 (UN, state to meet the demand of continuous
2008; McGee, 2011). Urbanization brings growing urban population (McGee, 1989;
economic development with substantial Ghazali, 2011). The demand for housing and
improvement in the provision of social related services from growing population
services to various communities in many has pushed built-up areas towards the
countries. Apart from the urban expansion peri-urban areas and encroached into the
or physical increase of built environment, hinterland (McGee, 2009; van Ginkel,
urbanization also brings ecological and 2010). Many studies have been conducted
socio-economic effects. Conversion of investigating the impact of urbanization
farmland and vegetation land cover into and land used changes on the environment,
urban built-up areas reduces the amount of forest and agricultural land (Petterson et al.,
lands available for food and crop production 1999; Sathiamurthy, 2008; Gossop, 2011).
(Raddad et al., 2010). For example, the However, little attention is paid to its impact
total area of cropland, pastureland and on the socio-economic and livelihood of the
rangeland in the United States has decreased local communities living within the areas
by 76 million acres in the lower 48 states experiencing intense urban development
between 1982 and 2003; while the total pressure except those undertaken by Ghazali
area of developed land has increased by 36 (1999); Ghazali (2011). This study aims to
million acres or 48% (Wu, 2008). Similarly, fill such gap by focusing on the evaluation of
China also experiences a drastic decrease urban development and its socio-economic
of farmland due to urban expansion. For impacts on the local communities living at
example, between 1996 and 2002, cultivated peri-urban areas of Seberang Perai, Penang,
land has been reduced from 130.03 million Malaysia. The study evaluates the economic
hectares to 125.93 million hectares (Qi et opportunities that the local communities
al., 2005). Urban expansion has created experienced, both in formal and informal
high pressure on the agricultural land. sectors, as to investigate the positive impact

350 Pertanika J. Soc. Sci. & Hum. 22 (2): 349 - 367 (2014)
 Urban Expansion and its Impact on Local Communities: A Case Study of Seberang Perai, Penang, Malaysia

of urbanization. Furthermore, this study economic growth and urbanization can

also examines the negative impact of urban cause adverse environmental impacts
expansion on agriculture activities and and pressurize the likelihood of the local
landownership among the local communities communities (Mandere et al., 2010; Gossop,
living within the areas dealing with intense 2011). Therefore, proper planning control
urban development. and management should be in place in order
to ensure the local communities are also
BACKGROUND OF THE STUDY benefitting from urban development (Van
Urbanization, the consequence of migration Ginkel, 2010)
from rural to urban, and natural population However, lack of rigorous policy on
growth cause the spread of built-up areas managing and planning of urban expansion
towards the fringes or peri-urban areas ag g rav at es t h e n eg at i v e i m p act o f
(McGee, 1989; McGee, 2011). This process urbanization in many developing countries.
is often termed as ‘peri-urbanization’. During the last three decades, many cities
It connotes the confluence of urban and in the developing nations have shifted
rural spaces, in particular the stretches from a mainly agriculture-based economy
of land connecting two city centres to one of industrialization in order to
(UNFPA, 2007). Peri-urban area refers foster economic growth (McGee, 1989;
to a transition or interaction zone where Choguill, 1994; Samat, 2002). This shift
urban and rural activities are juxtaposed, induces large group of the rural people,
and landscape features are subjected to who lose their major source of livelihood,
rapid modification, induced by human land, to flee to the urban centres (Elhadary
activities (McGee, 1989; Simon et al., and Samat, 2012). Rural-urban migration
2004). This area might include areas of is considered as one of the major driving
sensitive landscape, valuable agriculture forces behind the rapid urban growth. This
areas, or important wetlands which provide massive migration has placed high pressure
important component of urban eco-systems. on the existing social services, pollution
Furthermore, this area also contributes to a increase, social problems: it has become a
number of environmental and geo-political challenge for the state to meet the demand
changes such as changes in land-use, sub- of continuous growing urban population
urban development and diversification in (German and Pyne, 2010). According to
livelihoods (Tacoli, 2003; UNFPA, 2007; the World Bank (2007) around 300,000 to
Ghazali, 2011). Since peri-urban area is very 400,000 new migrants, mostly the poor,
important in providing linkages between arrive in Dhaka, Bangladesh annually. Its
urban and rural areas, there is an urgent need current population is approximately 12
to strategically plan and manage the spread million and projected to reach 20 million in
of urban spatial growth (Simon et al., 2004; 2020; making it the fastest growing mega-
McGee, 2009). Likewise, uncontrolled city in the world (German and Pyne, 2010).

Pertanika J. Soc. Sci. & Hum. 22 (2): 349 - 367 (2014) 351
 Samat, N., Ghazali, S., Hasni, R. and Elhadary, Y.

More than half of its total population lives activities that have been considered as a
in deprivation (Moral, 2010). The migrants’ major source of livelihood for people living
high demand for low price housing causes in the peri urban areas. As a result, peri-
more farmlands at the peri-urban areas to be urban areas become exposed to all sources
converted to housing and related facilities of vulnerability leading to negative impacts
(Samat et al., 2011). To exemplify further, on the livelihoods of the local communities
Liu et al., (2010) confirms that urban (Simon et al., 2004; Elhadary and Samat;
sprawl in China encroaches into farmland 2011).
costing farmers the most important resource Similarly, Malaysia also experiences
which they have depended and lived on for rapid urbanization primarily as a result of
generations. Furthermore, urban expansions the adoption of industrialization policy
cause more than 40 million farmers to in the 1970s. The industrialization in
lose their farmland at the rate of 2 million our country has managed to increase the
acres per year. Similarly, due to the rapid economic growth turning Malaysia to be
increase in the residential and commercial a country difficult to surpass in terms of
developments in the capital-Hanoi, Vietnam, economic growth. The Gross Domestic
the rural communities lose their main source Product (GDP) of the country has increased
of livelihood of fresh food such as fish, from 45,392 million in 1970 to 100,375
pork and vegetables for the city’s residents million in 1980 and 356,401 million in
(Tacoli, 2003). 2000 and continue to increase to 519,218
Likewise, urban expansion in the million in 2009 (Malaysia Economy, 2010).
African nations affects the agricultural The manufacturing sector becomes an
production and land use in the areas engine of development and plays the vital
surrounding urban centres (Simon et al., role in solving problems like poverty,
2004). For example, Mandere et al., (2010) low income, unemployment and lack of
finds that there was a sharp decline in services. As a result, Malaysia managed to
farming activities at the peri urban area reduce the percentage of poor population
of the capital, Nairobi, Kenya, where the in both urban and rural area from 49% in
number of full time farming households 1970 to only 6% in 2000 (Salfarina et al.,
declined from 90% in the 1960s to 49% in 2007). However, economic opportunities
2010. It is an indication of the declining obtained from the industrial sector attract
economic significance of agriculture. The influx of people from within and outside
declining of household agricultural activities of Malaysia to migrate and reside in urban
is mainly due the sale of land for residential centres. The average annual growth rate
or business premises and also the bequest of urban population in the country was
of land to the next generation. The rapid more than 4.9% between 1970 and 2000
conversion of agriculture land to non- as compared to only about 2.3% for the
farming purposes jeopardizes the farming country’s population as a whole. In 2000,

352 Pertanika J. Soc. Sci. & Hum. 22 (2): 349 - 367 (2014)
 Urban Expansion and its Impact on Local Communities: A Case Study of Seberang Perai, Penang, Malaysia

more than 60% of Malaysia’s population over 2464 hectares of land (Ghazali, 1999;
lived in urban areas with population Samat, 2002). Such development leads to
above 10,000 (Rostam et al., 2010). While increase of incoming migration to the area.
urbanization creates various opportunities Unsurprisingly, it places more pressure
for people living within the peri-urban area, on public services and creates housing
a few negative consequences accompany problems. In order to meet the need of the
the development. Urbanization leads to fast growing number of urban population,
significant reduction of agricultural land large productive rice growing areas have
and green space and becomes potential been turned into industrial and housing
threat of resource depletion due to rivers estates (Abdullah and Nakagoshi, 2006;
contamination from industrial discharge Rostam et al., 2010; Ghazali, 2011; Samat
(Peterson, 1997; Sathiamurthy, 2008). et al., 2011). Consequently, land at the peri-
The Second National Physical Plan urban areas become scarce and large group
(NPP-2), approved in August 13, 2010, of people who depend on agriculture for their
guides the urban development at the livelihood need to search for employment
national level in Malaysia. It is aimed to outside of agriculture. Corresponding to
achieve efficient, equitable and sustainable the people migration, the rice production
national spatial framework to guide the declines tremendously (Ghazali, 1999).
overall development of the country towards
achieving developed and high-income METHODOLOGY AND DATA
nation status by 2020 (JPBD, 2010). The This study aims to evaluate the impact of
development strategies in the NPP-2 also land use changes on the socio-economic
emphasizes on the inclusive development conditions in the local communities.
through the physical relationship between According to Pearsall (1999), a community is
urban and rural areas with the intentions defined as a group of people living together
that Malaysians can enjoy a development in one place or in a common environment,
that is sustainable, whole, fair and balanced. while the term local adds spatial element
It is timely that such a plan being adopted that narrows down the definition to include
and used as guidelines to manage and small geographical space. This paper defines
plan the expansion of built environment local community as a group of people living
since uncontrolled growth can cause together in a common environment with
environmental problems and jeopardize affects from urban development pressure
people (Simon et al., 2004; Gossop, 2011). surrounding their houses in Seberang
Penang is one of the Malaysian states Perai. A field survey is conducted in order
that has experienced rapid expansion of to get representative data on the positive
urban areas mainly due to industrialization and negative impacts of urbanization on
since 1970s. Six industrial estates and the local communities. Two major peri-
two free trade zones have been developed urban areas in the central part of Seberang

Pertanika J. Soc. Sci. & Hum. 22 (2): 349 - 367 (2014) 353
 Samat, N., Ghazali, S., Hasni, R. and Elhadary, Y.

Perai, namely Bukit Mertajam and Juru are Study Area

selected (refer to Fig.1). Based on the study Bukit Mertajam and Juru area, located
by Samat (2002) and Samat et al. (2010), in the Seberang Perai Tengah district are
that monitors land use transformation from chosen as study areas. Seberang Perai, the
non built-up to built-up areas and calculates mainland part of Penang, is located in the
the urban expansion intensity index within northwest coast of Peninsular Malaysia
1km x 1km cell grid from 1990 to 2007, between 5 o 05’ N and 5 o 35’ N latitude
shows that Bukit Mertajam and Juru areas and 100 o 20’E and 100 o 40’E longitude.
experience intense land use transformation. The area is approximately 738.4 square
Therefore, the local people living within kilometers (Fig.1). Seberang Perai has
these areas are chosen as respondents for experienced significant urban development
both quantitative and qualitative surveys. since the early 1970. It is planned to be
A total of 196 respondents have been a regional growth centre of the Northern
selected using convenience sampling and Region of Peninsular Malaysia where rapid
interviewed using questionnaires designed urban development primarily resulted from
to investigate economic opportunities industrialization (Goh, 1991; Samat, 2002;
and challenges experienced in the local Sathiamurthy, 2008). Various infrastructures
community. Convenience sampling is used such as North Butterworth Container
due to homogeneousness of the area and Terminal, North-South Expressway and
the unknown number of population living Butterworth-Kulim Expressway have been
within the area experiencing intense urban developed to support industrial sectors
development (Troachim, 2006). Out of the and promote economic growth of the
196 respondents, 113 or 58% are from Bukit state (JPBD, 2007; Sathiamurthy 2008).
Mertajam and 83 or 42% are from Juru Furthermore, this area is located within
area. To further support the study and to the Northern Corridor Economic Region
supplement the findings obtained from the (NCER) which is planned to be one of the
questionnaires and get clear picture about growth centers and achieve a world-class
the development and its implication on the economic region status by the year 2025
local communities, 12 in-depth interviews (Kharas et al., 2010). Hence, this area stands
are conducted involving village leaders, out as a potential local centre for population
government officers, villagers and senior growth and economic development for the
citizens, (Ghazali, 1999). Quantitative northern region (JPBD, 2007).
data is analyzed using statistical package In 2010, Seberang Perai population
for social science (SPSS) version 17.0 and has reached 838,999. The population rate
qualitative data is analyzed using content has been estimated to reach 990,000 and
analysis. 1.1 million people in 2015 and 2020;
respectively (DOS, 2010; JPBD, 2007;
Kharas et al., 2010). The increase in

354 Pertanika J. Soc. Sci. & Hum. 22 (2): 349 - 367 (2014)
 Urban Expansion and its Impact on Local Communities: A Case Study of Seberang Perai, Penang, Malaysia

population will have substantial impact affected by urbanization. The size of paddy
on resources, particularly land, in order to field has been severely affected where its
satisfy the demand for housing and other size has been reduced from 27,580.0 acres
related facilities. For example, it is also to 12,293 acres between 2000 and 2003,
projected that between 2011 and 2015 equivalent to a reduction of 124.4%. After
another 32,930 units of houses are required year 2001, stricter zoning plan has been
to meet the demand from the growing implemented where paddy field is zoned
population (JPBD, 2007). Table 1 below under Irrigated Agricultural Development
shows the increase of urban built-up area Project (SPMC, 1998; Samat, 2002). The
between 1990 and 2007. It shows that built- zoning plan compels the conversion of
up areas has increased nearly 20 % between paddy fields to other classifications of land
1990 and 2001. In fact, it has further more difficult if not impossible. Ironically,
increased by 12% between 2001 and 2007 there are cases where farmers independently
(Samat et al., 2010). convert their land into single unit of a family
The increase of urban built-up area is house or use their land for swiftlet1 farming
at the expense of agriculture land in the (Respondent 1, Male, Government Officer,
study area. Evidently, Table 2 illustrates five 45 years old, In-depth interview, 2011).
types of main agriculture activities that are Edible bird nest farming, which is popular in the Southeast
1

Asian Countries

Fig.1: The study area

Pertanika J. Soc. Sci. & Hum. 22 (2): 349 - 367 (2014) 355
 Samat, N., Ghazali, S., Hasni, R. and Elhadary, Y.

TABLE 1
Land transformation in the Seberang Perai region between 1990 and 2007

Year Built-up areas Non Built-up areas % increase of Agricultural Land

(Hectares) (Hectares) Built-up areas (Hectares)
1990 15590.464 58126.633 - 51880.427
2001 18701.675 55015.422 19.95 42738.489
2007 21020.959 52696.138 12.40 42038.228
Source: Samat et al. (2011)

TABLE 2 TABLE 2 (continue)

Size (in Acre) and Percentage Transformation of (d) Coconut
Land Used for Five Major Agriculture Activities in
Seberang Perai. Year Coconut (acres) Change (%)
2000 3481.2
Year Paddy (acres) Change (%) 2003 3968.9 12.29
2000 27582 2005 3359.2 -18.15
2003 12293 -124.37 2008 3282.1 -2.35
2005 12472 1.44
(e) Coconut
2008 12472 0.00
Year Total (acres) Change (%)
(a) Paddy fields
2000 56135.2
Year Palm Oil (acres) Change (%) 2003 41210.9 -36.21
2000 12750 2005 39553.1 -4.19
2003 12720 -0.24 2008 38846.4 -1.82
2005 12992.6 2.10
(f) Total agriculture land size
2008 13195.9 1.54
Source: State Department of Agriculture (2009).
(b) Palm oil

Year Rubber (acres) Change (%)

Significant increase of its population
2000 10391
will lead to physical transformation of
2003 10141 -2.47 many areas especially at the fringe of
2005 9137.6 -10.98 existing built-up areas. It is appropriate
2008 9511.6 3.93 to investigate the socio-economic benefits
(c) Rubber that the people experienced and the threats
resulted from urban development in view of
Year Coco (acres) Change (%)
the direct impact of urban transformation on
2000 1931
2003 2088 7.52
the people living in the surrounding areas.
2005 1591.7 -31.18
Such information is useful for planners and
2008 384.8 -313.64 decision makers to gain understanding and
assist in formulating appropriate policies on
land use planning and management of urban
and peri-urban areas.

356 Pertanika J. Soc. Sci. & Hum. 22 (2): 349 - 367 (2014)
 Urban Expansion and its Impact on Local Communities: A Case Study of Seberang Perai, Penang, Malaysia

Demographic and Socio-Economic Profile TABLE 3

of the Respondents Demographic and Socio-Economic Profile of the
Respondents
Socio-economic survey is conducted at the
fringe of Bukit Mertajam and Juru where Frequency Percentage
Areas Surveyed
(n = 196) (100%)
113 respondents, equivalent to 57.7 %;
Bukit Mertajam 113 57.7
and 83 respondents, equivalent to 42.3
%; are interviewed respectively (Refer Juru 83 42.3
to Table 3). The respondents comprised Respondent’s Status
Frequency Percentage
(n = 196) (100%)
of 83 heads of households or 42.3%, 90
wives or 45.9 % and 23 family members Head of Household 83 42.3

or 11.8%. The age of respondents ranges Wife 90 45.9

from 17 to 86 years old, with mean age of Other Family
23 11.8
48 years old. The respondents are matured Member
and able to understand the questions given. Frequency Percentage
Sex
(n = 196) (100%)
They have seen the physical and land use
Male 71 36.2
transformation surrounding their areas.
The distribution of gender among the Female 125 63.8
respondents is with 71 of respondents or Socio-Economic Frequency Percentage
36.2% are male and 125 of respondents or Status (n = 196) (100%)
High Income 9 4.6
63.8% are female. In the aspect of income
Family
level among the respondents, a majority Middle Income 162 82.7
of 162 respondents or 82.7% are from the Family
middle income family, 18 respondents or Low Income Family 18 9.2
9.2% are from low income family and 9
respondents or 4.6 % are from high income Urban Expansion and Socio-Economic
family. Based on socio-economic conditions Opportunities Experienced by the Local
Communities
of the respondents, the study investigates
the awareness of the respondents on Urban development brings socio-economic
urban development and its impact on the opportunity to the local communities. As
communities. Majority of the respondents an example, the development creates job
or 171 respondents, representing 87.2% opportunities in formal sector, generates
,are aware of urban encroachment into their informal job sectors and opens bigger
surrounding areas. However, 25 respondents market for local produce. The development
or 12.8% are unaware of the situation. The of various infrastructures in the peri-urban
type of built-up activities in Bukit Mertajam areas gives better accessibility for these
and Juru areas are housing, commercial, areas to the urban centres. The distance
industrial and infrastructure. to the largest town, Butterworth, is less
than 15 km, and to Bukit Mertajam and

Pertanika J. Soc. Sci. & Hum. 22 (2): 349 - 367 (2014) 357
 Samat, N., Ghazali, S., Hasni, R. and Elhadary, Y.

Juru is 23km. Evidently, it provides more The young generation prefers to work in
opportunities and convenience for the people the industrial sector since they can easily get
to get access to their jobs. Table 4 illustrates employed and earn enough money to have a
the accessibility of the respondents to good living. Advertisement of job vacancies
workplace. Most of the respondents that offering high monthly salary and various
comprise of 67 respondents or 76.1% benefits including Employee Provident
can reach their workplace in less than 10 Fund, medical benefit, yearly bonus and
minutes, while 15 respondents or 17.1% can free transportation to the factories in Perai
access to their workplace between 10 and 25 Industrial Estate and Kulim High Tech Park
minutes. Only 6 respondents or 6.8% have can be seen in the study area. Based on the
to travel between 25 and 50 minutes to get survey conducted, 30 respondents or 34.1%
to their workplace. are involved in manufacturing related such
as operators, transporters, and labours; 10
TABLE 3
Accessibility of the respondents to workplace
respondents or 11.4% are in professional,
technical and similar job categories; 6
Time Travel Frequency Percentage respondents or 6.8% are in administrative
(Minutes)
and management (refer to Table 4 below).
0 – 10 67 76.1
Table 4 also shows the respondents’ earning
10 – 25 15 17.1
25 - 50 6 6.8
income from their main job. This table
Total 88 100.0 shows that 16 respondents or 18.2%,
mostly from professional, technical and
Most of the respondents that comprise related category, earn between RM2500.00
of 139 people or 70.9% feel that urban to RM5,000.00 monthly from their main
development bring economic benefits to the job. While 26 respondents or 29.5% earn
communities, while only 57 respondents or between RM1,500.00 to RM2,499.00
29.1% disagree to that. As depicted from an per month. However, 19 respondents or
in-depth interview: 21.6% earn less than RM720.00, below
poverty income line (Salfarina et al., 2007).
“Young people prefer to work
Ironically, even though urban development
in factories. They can easily get
brings employment opportunities for the
employed. Furthermore, they earn
community, there are still people whose
steady monthly salary, receive
monthly salary is slightly lower than
various benefits and access to the
national poverty income line.
workplace easily since the factories
In addition to main employment,
provide transportation to their
the local communities also have the
workers”(Respondent 2, Male,
opportunity to participate in secondary
Pensioner, 65 years old, in-depth
income generating activities. For example,
interview, 2011).
majority of the respondents have secondary

358 Pertanika J. Soc. Sci. & Hum. 22 (2): 349 - 367 (2014)
 Urban Expansion and its Impact on Local Communities: A Case Study of Seberang Perai, Penang, Malaysia

TABLE 4
Cross tabulation of Income and Occupational Category of the Respondents.

Income from Main Job (RM)

Total/
Job Category 0-720.00 721.00- 1,500.00- 2,500.00- Percentage
1,499.00 2,499.00 5,000.00
Professional, technical and related 0 1 2 7 10
11.4%
Administration and management 0 2 2 2 6
6.8%
Clerical and related 0 5 4 1 10
11.4%
Sales 2 3 7 2 14
15.9%
Services 3 1 1 1 6
6.8%
Agriculture, rearing, forestry, fisheries 3 5 0 1 9
and hunting 10.2%
Manufacturing and related, operator, 8 10 10 2 30
transportation and labour 34.1%
Others 3 0 0 0 3
3.4%
Total/Percentage 19 27 26 16 88
21.6% 30.7% 29.5% 18.2% 100.0%
Source: Field survey (2011)

job. A total of 86 respondents or 97.7 % “I work as a security guard at the

earn up to RM500.00 per month. In fact, factory near my village and earn
one respondent earn between RM500.00 to RM1300.00 monthly and also make
RM1500.00, and another from RM1500.00 RM150.00 every two days through
to RM3500.00 from secondary job. For selling rubber tapped in the land
example, the location of industrial estate at rented from the local people. ”
the peri-urban areas (refer to Fig.1) provides
opportunities for the communities to work in Similarly, an in-depth interview is
non-agriculture sectors and simultaneously conducted with Respondent 4, a male,
involve in agriculture activities. Based on Government Officer aged 55 years old, in
an in-depth interview in 2011, Respondent 2011). As a part time work, he grows paddy
3, a male rubber tapper aged 48 years old, in 5 acre rented paddy field from an owner
expresses the following: who lives in Selangor. In view of good
quality of road network provides easy access
to urban centres, he can work in the paddy
field after coming back from his office.

Pertanika J. Soc. Sci. & Hum. 22 (2): 349 - 367 (2014) 359
 Samat, N., Ghazali, S., Hasni, R. and Elhadary, Y.

He says “The work in the paddy aged 43 years old, shares in an in-depth
fields is a good exercise; I can get interview in 2011 as below:
healthy as well as earn an extra
“I quit my job as an operator
income. I earn about RM6000.00
at a factory in Penang Island to
net after deducting all expenses
open a small stall selling banana
on every harvesting season.
fritters and curry puffs. I earn
Furthermore, I hire people from
about RM200.00 daily. My time is
the village to spray pesticides and
quite flexible that I still have time
fertilizers, plough the land and
to look after my children. I start my
harvest the paddy”
business from 2:00pm to 6:00pm
only. This is better than working at
The local community living at the
the factory, where I had to travel to
peri-urban areas has the opportunities to
Penang Island as early as 6:00am.
participate in agriculture sector, at the same
I also provide opportunities for my
time, earn stable monthly income from
friends to leave their homemade
working in formal job sectors. The study by
cakes or local chips to be sold
Madsen et al. (2010) in Denmark also finds
in my store. I only charge small
that urbanization at the rural and peri-urban
commission rate where they pay
areas allows farmer to participate in service
me RM0.30 for every RM1.00 items
or manufacturing sector while continue
sold”.
being farmers. Other types of secondary jobs
include working as technicians, mechanics
Besides, opening food store near their
and security guards at the factory near the
homes, women also participate in providing
study area (Ghazali, 1999).
childcare services. Based on an in-depth
In addition to generating opportunities
interview in 2011, Respondent 6, a female
for the local communities to participate in
housewife aged 40 years old reveals the
formal job sector, urban development at the
following:
peri-urban areas also opens the market for an
informal job sector. The expansion of good “I look after three of my neighbours’
network infrastructure coupled with the children whose parents work as
increase of population with its purchasing teachers. The age of the children
power trigger many people, particularly in ranges between one to five years
area close to the cities, to set up small stalls old. They pay me monthly fees
selling food and restaurants along both of RM200 for each child. While
sides of paved road. This study discovers looking after the children, I can
that women also participate in this informal also do other housework. It helps
sector. Respondent 5, a female housewife to contribute to my family income”.

360 Pertanika J. Soc. Sci. & Hum. 22 (2): 349 - 367 (2014)
 Urban Expansion and its Impact on Local Communities: A Case Study of Seberang Perai, Penang, Malaysia

As more middle income and high local wet markets. Below is depicted from
income families move to the peri-urban an in-depth-interview with her in 2011:
areas, the market for food and services such
“Considering my land is very small,
as childcare and sewing clothes increase.
I only get an average income of
Therefore, villages located close to urban
RM25.00 per day. However, this
and along the main roads are benefiting from
is quite good money where I can
the development compared to those who
contribute to my family”.
lack such facilities (Mandere et al., 2010;
Ghazali, 2011).
As well as creating more job opportunities The demand for local produce is very
in informal sectors, development at the peri- high that she manages to make a good living
urban areas also generate bigger market for through selling vegetables.
rural produce. Below depiction from an in- Similarly, Respondent 9, a male
depth interview with Respondent 7, a male pensioner aged 60 years old, rears goat
dairy farmer aged 57 years old, in 2011, for local market and opens a restaurant in
supports the concept that good network his farm serving mutton as the main dish.
infrastructure and high purchasing power The following is depicted from an in-depth
of urban people is an advantage for farmers interview in 2011:
living at the peri-urban areas
“In the early days, I had problems
“My land is 45 minutes’ drive with marketing goat milk. I used to
from Georgetown and 15 minutes’ take goat milk in my car and sold
drive from Butterworth. It is it at the local market. However,
easily accessed through good due to the fact that the product is
road network. I used to distribute perishable, I start to think of ways
the milk to urban dwellers with to sell it fast. Then, I open the
motorbike. Now, I have expanded restaurant in my farm, specializing
my business and use a car to get in dishes made from mutton and
to my clients. Due to increasing goat milk. Now, I need at least 600
demand for fresh milk, my business – 700 goats monthly to cater for
has become lucrative. My customers the demand from the restaurant.
are mostly foreigners living in the People come here not only for food
urban centers”. but also to get away from urban life.
This place offers them a relaxing
environment for meals and their
Similarly, Respondent 8, a female
children will have the opportunity
housewife aged 55 years old, grows
to see goats, ostrich and rabbit or
eggplants, lemongrass, and chillies near
feed the fish in our fish ponds. Most
her house at the fringe of Butterworth. She
of the customers are from urban
sells the produce to vegetable sellers at the

Pertanika J. Soc. Sci. & Hum. 22 (2): 349 - 367 (2014) 361
 Samat, N., Ghazali, S., Hasni, R. and Elhadary, Y.

areas with higher purchasing power and earn monthly salary. However, most of
than the locals”. the respondents involved in low income job
categories. As shown in Table 4 above, most
The findings from this study reveal respondents are factory workers, operators,
that the with developments of good transporters, and labours. These occupational
infrastructures bring more opportunities to categories are translated into income earned
the local communities to be involved with by the respondents. Based on Table 4, about
formal job sector, provide services and 19 respondents equivalent to 21.6% earn
market local produce to urban dwellers. monthly income of RM720 and below. They
Similarly, Mandere et al. (2010) states that are classified as poor, based on Malaysia’s
commercial activities along the road in poverty income. Furthermore, only 16
the periphery of the urban core in Kenya respondents equivalent to 18.2% earn more
provide farmers with outlets to sell products than RM2500.00 per month. Similarly, the
or to purchase what is needed for farming. It study by Mandere et al (2010) in Kenya
also gives peri-urban dwellers access to food and Ghazali (1999; 2011) and Salfarina et
supplies and other basic necessities without al., (2007) in Penang, Malaysia find that
travelling to the urban core. Although urban development brings more economic
urban development at the peri-urban areas opportunities to the areas experiencing land
benefit the local communities, most of the use transformations. However, the local
opportunities are limited to the financially communities are involved in low skills
constraint informal sectors. Therefore, it is and low paying job such as working as
unable to provide sufficient high income housekeepers, garbage collectors, cleaners,
opportunities to lift the majority of the babysitters, hawkers, landlords and food
population from hardship (Simon et al., stall operators and food traders.
2004; Mandere et al., 2010). . Furthermore, the conversion of rural
land into settlement or built-up areas reduces
The Negative Impacts of Urban Expansion the amount of land available for agricultural
at the Peri-Urban Areas activities and housing. For example, large
The discussion above concentrated on productive agriculture areas in Penang have
the economic benefits that the local been transformed for industrial development
communities at the peri-urban areas and its related activities (Ghazali, 1999;
experienced. However, urban development Samat, 2002). Thus, land becomes scarce
also brings negative consequences. on the island and many people move to
Although industrialization opens more job Seberang Perai. Rapid urban expansion
opportunities in non-agriculture sector, consumes approximately 14.2 sq. km / year
most of the local communities are involved of farm land which has been converted to
in low job category. For example, only 88 other use on Penang Island and Seberang
respondents that is equivalent to 44.9% work Perai between 1989 and 1995 (SPMC,

362 Pertanika J. Soc. Sci. & Hum. 22 (2): 349 - 367 (2014)
 Urban Expansion and its Impact on Local Communities: A Case Study of Seberang Perai, Penang, Malaysia

1998; Sathiamurthy 2008). The study a decent living. It needs at least 20

conducted also reveals that considerable relong or 13 acres to make a good
productive land at the peri-urban area has living from planting paddy”.
been converted to either built-up areas
or service related activities (Samat et al., On the whole, the respondents who
2011). Table 5 shows the size of land owned disagree selling their land are afraid of
by the respondents in the study area. Only losing source of livelihood or not receiving
29 out of 196 respondents interviewed have appropriate compensation in view of the
land. However, the size of land owned is increasing value of land.
slightly small. The average size of land
is approximately 4.414 relong or 2.94 TABLE 5
Land Size Owned by The Respondents In The Study
acres. For example, more than 80% of the Area
respondents own less than 4 acres of land,
Land size Land size Frequency Percentage
10% of them own between 6 to 7 acres of
(Relong) (Acres)
land, and only 6 % of them or 2 respondents 1 0.67 9 31.03
own the land with the size of more than 10 2 1.33 4 13.79
acres. 3 2.00 4 13.79
The finding shown in Table 5 clearly 4 2.67 5 17.24
reflects that most of the respondents in the 6 4.00 2 6.90
study area do not have land or only own 10 6.67 2 6.90
small piece of land. It might be true to say 11 7.33 1 3.45
that the low returns from the agriculture 16 10.67 1 3.45
compared to the high income from built-up 20 13.33 1 3.45
areas compels many people to sell their land Total 29 100.00
or in some cases convert it to commercial Note: 1 relong is equivalent to 0.28 hectares.
Average land size is 4.414 relong or 2.944 acres.
activities. Based from an in-depth interview Source: Field survey (2011)
with Respondent 10, a male pensioner aged
59 years old, reveals that he is willing to sell This nationwide phenomenon threatens
his paddy fields if he receives appropriate the existence of agriculture that provides
compensation. Below is depicted from the stable food mainly rice to large communities
interview in 2011: in both rural and urban areas. According
to Wu (2008) more than half the value of
“I could use the money to start a total farm production in the United States
business or buy property elsewhere. is derived from counties facing urbanization
Moreover, the size of my land is very pressure. As urbanization intensifies,
small; only one acre. Thus, the yield agricultural and non-agricultural land use
from this land is very small whereby conflicts become more severe (Mandere
planting paddy is sufficient to have

Pertanika J. Soc. Sci. & Hum. 22 (2): 349 - 367 (2014) 363
 Samat, N., Ghazali, S., Hasni, R. and Elhadary, Y.

et al., 2010). Consequently large group of the probability that it will be converted to
farmers and related farming employment human landscape is high (Thompson, 2004;
have to seek other source of income digress Abdullah and Nakagoshi, 2006). Declining
from farming production. in agricultural activities not only threaten
Furthermore, the finding also shows the situation of food security but also place
that farming or subsistence economy, the a great deal of pressure on the ecological
major source of livelihood of the Malays condition at the micro and macro level.
up to the early 1970’s, has been profoundly In this regard, Wu (2008) and Raddad et
transformed (Ghazali, 1999; Thompson, al., (2010) place the blame on planners
2004). Although it has not been completely for unable to foresee the hidden advantage
eliminated, it seems that most of these of farming in ensuring food security and
lands shall be most likely be converted to protecting the environment. In most cases,
other use. It may be argued that farming agricultural land has been strategized as
and related activities might disappear reserved land for future urban growth.
in the near future if planners and policy
makers do not take serious measures. CONCLUSION
Thompson (2004) states that by 1987, Rapid urban expansion causes built
rural households in Peninsular Malaysia environment to spread into the peri-urban
would derive only a quarter or 25.7% of areas, resulting in sharp decrease of
their annual income from agricultural agriculture land. Although urban expansion
activities. Non agricultural income is brings improvement in the infrastructure
derived from social services equivalent to and generates economic opportunity both
24.2%, manufacturing equivalent to 13.7%, in formal and informal sectors, it also
trading equivalent to 13.2% and a variety of causes reduction of land size that the
other sources equivalent to 23.2%. Based on local communities owned. Subsequently,
such finding, only 0.7% of the households it threatens the livelihood of farming
derive their main income from farming. If communities. There is an imperative need
this trend continues, farming activity will be for rigorous policies at a local level to
eliminated completely from Penang by year control or direct the urban development
2025 (Sathiamurthy, 2008). into specific region in order to reduce the
The rate of land conversion occurred in negative impact of urban development on
a relative manner depends on the distance to the society and the environment. As a whole,
the urban centre, development schemes as the rigorous policies shall promote equitable
well as in areas that are highly affected by the and sustainable urban development.
spread of urban culture (Samat et al, 2010;
Ghazali, 2011). Therefore, it is sufficient to ACKNOWLEDGEMENTS
conclude that once the human landscapes
Authors wish to thank the Ministry of
surround or border the natural landscape,
Higher Education, Malaysia through

364 Pertanika J. Soc. Sci. & Hum. 22 (2): 349 - 367 (2014)
 Urban Expansion and its Impact on Local Communities: A Case Study of Seberang Perai, Penang, Malaysia

Fundamental Research Grant and Universiti www.globalpost.com/dispatch/asia/100831/

Sains Malaysia Research University Grant bangladesh-megacity-part-one

number 1001/PHUMANITI/613138 for Ghazali, S. (1999). Socio-Economic Changes in the

funding this project. Authors also thank the Peri Urban Villages in Penang, Malaysia.(Ph.D
Town and Country Planning Department, Thesis dissertation). University of Leeds.

and the Penang State for providing land use Ghazali, S. (2011). Development and the loss of
data employed in this study. identity: Socio-cultural impact of urbanization at
the peri-urban areas of Penang Island, Malaysia.
Paper presented at the Workshop onIssues
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