The Penang government said it is scaling down plans to create three islands via sea reclamation on the south of the state to only one island.

Penang Chief Minister Chow Kon Yeow said this is at the urging of Prime Minister Anwar Ibrahim, amid ongoing controversy over the project.

This means the project will be reduced to a single island of 2,300 acres, compared to 4,500 acres across three islands as...