Penang exco Jagdeep Singh Deo called on real estate stakeholders to seek for a new landfill site on the island, to reduce illegal dumping in the state.

According to Jagdeep the numerous illegal dumping incidents such as the recent footage of two men dumping rubbish into the sea near Farquhar Street which went viral on social media, have raised concerns among the real estate players.

"We believe that the root cause of the illegal dumping activities is the high cost of transporting wastes to dumpsites on the mainland," he told a press conference after a dialogue session chaired by Penang branch of the International Real Estate Federation (FIABCI) here.

He said the dumpsite at Jelutong has almost reached its capacity and would be closed to make way for a 40-hectare mixed development site.

"We welcome parties who could assist the state government in resolving the issue," he said.

Jagdeep added that it was also proposed that the minimum penalty for illegal dumping be increased.

Meanwhile, another issue raised during the dialogue session was to increase the number of hotel rooms and serviced apartments to cater to the increasing number of tourist arrivals in Penang.

He added that operators of serviced apartments should have a minimum 4-star rating as provided by the guidelines finalised last year.

"This means that the conditions of the serviced apartments, such as size, facilities, accessories and other services should comply with the four-star rating requirements," he added.