There is a need for smart partnership between the State Government and the private sector to develop Penang in a sustainable manner, Chief Minister Tan Sri Dr Koh Tsu Koon said today. He said the private sector should be a major driving force in the development of privately-owned land, as the Government only owned about two per cent of land that could be developed.

"At the same time, the Government would ensure that there is a proper balance of development and sustainability," he said at the opening of the 8th International Asian Planning Schools Association Congress (APSA).

Koh said there was a need for openness and creativity between planners and policy-makers. He also said his administration had always followed the policies and practices of former chief minister, Tun Dr Lim Chong Eu, on development of the island and mainland.

Koh stressed the need to spread development to areas outside of George Town as over-development of the city centre could result in the city becoming an urban slum.

He hinted that the next areas to be given the status of "Bandar Raya" were Butterworth, Prai, Bukit Mertajam and Seberang Jaya.

"We do not want to simply change the status of townships without having major improvements in terms of lifestyle, health and socio-economy, besides ensuring that development is carried out in a sustainable manner," he said.

The three-day congress is attended by participants from 20 countries and organised by Universiti Sains Malaysia.