KUALA LUMPUR, Nov 20, 2008 (AFP) - Malaysia's Penang island, world-renowned for its architecture and culture, could lose its UNESCO world heritage listing if four new high-rise hotels are built in its capital, reports said Thursday.

Chief Minister Lim Guan Eng told the New Straits Times his government was in a bind as the buildings exceed the 15-metre (49-foot) maximum UNESCO height guidelines but were approved by a previous government before heritage status was granted.

"We cannot afford to call off the projects as the developers will take legal action against the local authorities so we must face the reality of losing the UNESCO status," Lim was quoted by the paper as saying.

The chief minister said the state government would discuss the matter with the Culture, Arts and Heritage ministry to find a solution.

UNESCO's regional adviser Richard Engelhardt told the Star Daily the state government had no choice but to adhere to the World Heritage Committee (WHC) guidelines.

"When the status is approved, the guidelines trump all previous existing regulations," he told the paper, adding: "Why would you apply for the status if there was no intention of following the guidelines?"

Georgetown along with the port city of Malacca were awarded heritage status in July after years of waiting for recognition. Penang's capital was honoured for its colonial-era pre-World War II buildings.

It also boasts a multi-cultural living heritage of ethnic groups including Malays, Indians, Chinese, Eurasians, Armenians, Japanese, Britons, Jews, Filipinos and Indonesians.

Malacca chief minister Mohammad Ali Rustam urged Lim to prevent any "illegal" development in Georgetown that could jeapordise the heritage status of both cities as the recognition was given jointly, the New Straits Times reported.

Top photo: An artist impression of the proposed construction of high rise hotel next to the historic Customs Department premises in Weld Quay in George Town.