Penang had worked for years to get this status, which comes with Unesco funding and almost certainly guarantees higher tourism numbers.

The four hotels, however, threaten to scuttle Penang's plans as their heights exceed the 18m - roughly five storeys - ceiling set by Unesco.

Penang Chief Minister Lim Guan Eng told The Sunday Times yesterday that negotiations were still ongoing, but he did not want to elaborate further.

'We're still waiting for the Unesco officials to come and complete their report. We're quite confident that this matter can be resolved,' he said.

Teo Cheng Wee