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PDC building to go

June 15th, 2014 Leave a comment

Artist's impression of the future BPO towers on current PDC's site

The Penang Development Corporation building will be demolished to make way for a Business Process Outsourcing (BPO) Prime project.

The project will be undertaken by a joint-venture company, formed by the Penang Development Corporation (PDC) and Temasek, in which PDC will take up a 51% stake.

InvestPenang director Datuk Lee Kah Choon said PDC was in the process of relocating to Mayang Mall in Bayan Baru.

“The PDC and its 415 workers will be shifted to Mayang Mall by the end of the year,” he told a press conference yesterday.

The four-storey PDC building, located on a 2.7ha site in Bayan Baru, will be replaced by a proposed 29-storey and 25-storey BPO towers, which are being planned to accommodate retail outlets, recreational facilities and open spaces.

“Together with the other Multimedia Super Corridor (MSC)-status buildings such as Suntech Tower, One Precinct and Mayang Mall in Bayan Baru, the area will form a BPO hub.

“The BPO hub is projected to create 4,000 jobs in three years,” Lee said.

He added that PDC had the option of moving to the BPO Prime when it was completed.

Lee said the demand for BPO offices was strong, especially if the building was MSC-certified.

The BPO Prime will be going for MSC certification.

“The global outsourcing market, of which BPO services are part of, is projected to grow to US$625bil in 2017 from US$458bil presently,” Lee said.

On May 23 this year, the PDC signed a memorandum of understanding with Temasek to undertake the development of the BPO Prime and Penang International Technology Park (PITP) in Bayan Baru and Batu Kawan.

“Both projects will have a RM11.3bil gross development value.

“0nce completed, the BPO Prime will be managed by the Economic Development Innovations Singapore Pte Ltd,” Lee said.

The PITP project located on a 83ha or 206 acres will be completed in five to 10 years, according to Lee.

The PDC moved to its present location in Bayan Baru in 1993 from the Penang Skills Development Centre.

Source: StarProperty.my

Categories: Property News Tags:
  1. bolatelli
    June 15th, 2014 at 15:49 | #1

    can build high rise in bayan lepas? near airport has height limit, no?

  2. Miao
    June 15th, 2014 at 15:52 | #2

    @bolatelli

    where got near?

  3. 5pain
    June 15th, 2014 at 19:10 | #3

    wah…..

    one precinct, suntech, mayang mall, quartermile all these office / retail space already low occupancy, still want to build these 25 + 29 storey office???

    PDC better make sure the BPO hub success, else these office will be ended up as ghost town.

    If this BPO hub really boom up, those nearby property (Elit, One World, One Sky, D Piazza, Arena, Olive Tree, Sunway Tunas) huat liao…!!!

  4. gojira
    June 15th, 2014 at 22:15 | #4

    @Miao

    botatelli is from Balik Pulau. The tallest structures you get there are durian trees. Pls give him some time to adapt to modern civilization.

    I may not agree with all the things that the current gov does, but this I think is something smart to be done, that is the precious land on the island has to be wisely and efficiently used for higher value added activities.

    And that brings us to the topic of a bigger international airport near Kulim Hi-tech park that was proposed. WHY NOT? I think that’s a brilliant idea! Why put a “land-consuming” airport on the island? Why do we have to feel insecure about a bigger and better airport in Kedah? Land on the island is scarce, why hog the land for the airport? Are we not able to use it for higher value activities??

  5. lee
    June 16th, 2014 at 00:13 | #5

    all building in FIZ is not high. it is in the airplane path.

  6. SA
    June 16th, 2014 at 01:36 | #6

    Bayan Lepas HUAT LIAO LOH!

  7. cl
    June 16th, 2014 at 09:14 | #7

    i think include Relau and Sungai Ara also ho seh liao… Invest for south west property is good that start to see the fact from analyst forecast. So thats why 2-3 years will see property value will be another hike…. Stay Tuned!

  8. SA
    June 16th, 2014 at 09:27 | #8

    @cl

    cl :i think include Relau and Sungai Ara also ho seh liao… Invest for south west property is good that start to see the fact from analyst forecast. So thats why 2-3 years will see property value will be another hike…. Stay Tuned!

    hahaha…you seems like have the property at Relau and Sungai Ara ya..HUAT HUAT HUAT!

  9. unicorn
    June 16th, 2014 at 09:34 | #9

    why suddenly huat? 4000 jobs is no big deal. maybe equals to 2 factories only.

  10. SA
    June 16th, 2014 at 09:35 | #10

    cl :i think include Relau and Sungai Ara also ho seh liao… Invest for south west property is good that start to see the fact from analyst forecast. So thats why 2-3 years will see property value will be another hike…. Stay Tuned!

    hahaha…you seems like have the property at Relau and Sungai Ara ya..HUAT HUAT HUAT!

  11. Miao
    June 16th, 2014 at 09:40 | #11

    Ho seh!

  12. dTER
    June 16th, 2014 at 09:49 | #12

    unicorn :why suddenly huat? 4000 jobs is no big deal. maybe equals to 2 factories only.

    Idiot! is better then lost the 4000 jobs in Penang, have to think positive! 4000 jobs is a big numbers at this point of crucial period, this like pumps a very encouraging news into this market especially island.

  13. cl
    June 16th, 2014 at 10:01 | #13

    Yeah tai ke huat la…. 4K jobs is big significant for PNG property future liao…. So more people will move to PNG with family and also with the ummp, we will HUAT together. We just stay tuned for more good news la. So proud to be PNG KIA!

  14. Ara
    June 16th, 2014 at 10:15 | #14

    The news is firm and when this can be executed?

  15. Bond
    June 16th, 2014 at 10:44 | #15

    Outsourcing hub may be just another name for those not so high pay IT support jobs likes in India. Let say a working couple will purchase 1 apartment = 2000 units. Elit Height+Golden Triangle+Sierra Residence already more than than. Some more so many projects work in progress. The rest will be in Batu Kawan and Prai.

  16. Miao
    June 16th, 2014 at 10:58 | #16

    They said 4000 high income jobs… At least 4-5k a month i think… ho seh..

  17. bos
    June 16th, 2014 at 11:01 | #17

    ho seh liao lah, island is always the best.

  18. unicorn
    June 16th, 2014 at 11:12 | #18

    @Miao

    4-5k a month? Assuming both husband & wife falls under that bracket, that’s a household income of 8-10k a month only leh. Still qualify for mampu-milik house leh! high income meh?

    @dTER

    Ok you are right. Some positive news is better than all the negative news, it’s like “better than nothing” right? Well one thing, using gov’s money to create jobs is much better than handing out the money. Jobs increase productivity, and it is recurring, whereas handouts are one-off, and absolutely non-productive.

  19. Miao
    June 16th, 2014 at 11:15 | #19

    @unicorn

    You said low ma low lo… lol

  20. unicorn
    June 16th, 2014 at 11:16 | #20

    @bos

    Batu Kawan would be the biggest gainer when you’re talking about housing demand as a result of jobs.

    Gurney Drive would be the biggest gainer when you’re talking about housing demand as a result of foreign interest.

  21. Hock Hin
    June 16th, 2014 at 11:17 | #21

    @Miao
    Ha ha ha….I get to laugh on Monday. Thanks

  22. Goreng
    Goreng
    June 16th, 2014 at 11:44 | #22

    Remember, Temasek has 41%, they are great investment arm from Singapore government. They had calculated the risk for this project, to me, it’s a good news to Bayan Baru.

  23. roticanai
    June 16th, 2014 at 12:04 | #23

    Hi Goreng,

    Can you please explain why is it good news to Bayan Baru?

  24. cl
    June 16th, 2014 at 12:27 | #24

    @Goreng
    Great. Do you mean Temasek
    will ensure success of the project? Thanks.

  25. millionaires
    June 16th, 2014 at 12:54 | #25

    whoever own a condo in bayan baru now will becomes millionaires very soon.

  26. Goreng
    Goreng
    June 16th, 2014 at 14:09 | #26

    *typo Temasek has 49%, they have the experts, and they will ensure this project is a success.

    Why it’s not a good news to Bayan Baru? Just imagine 4000 new vacancies, this will inject new consumers into house rental market, food/restaurants, electrical, supermarket etc at nearby business outlets. Please tell me why it’s not a good news? Except for the people who hates to see more traffics into BB.

  27. cl
    June 16th, 2014 at 15:13 | #27

    yeah south west will be ONG and HUAT area soon…. For those who owned few houses, really congracts to you….. Your invest is in right location.

  28. Elmo
    June 16th, 2014 at 15:53 | #28

    Goreng :
    *typo Temasek has 49%, they have the experts, and they will ensure this project is a success.
    Why it’s not a good news to Bayan Baru? Just imagine 4000 new vacancies, this will inject new consumers into house rental market, food/restaurants, electrical, supermarket etc at nearby business outlets. Please tell me why it’s not a good news? Except for the people who hates to see more traffics into BB.

    Temasek expert?? You don’t know how much $$ lost for their investment. Go and dig the information before concluded them are experts.

    On realistic side… create jobs is Penang is better than zero opportunities. Malaysia standard RM5k is considered high income. This is the definition for Malaysia high income extracted from Thestar. “Malaysia’s target to become high income country by 2020 is possible, and the country is capable to be more ambitious by aiming for per capita income of US$20,000 by 2025,” he told StarBiz.

  29. pragmatic
    June 16th, 2014 at 17:15 | #29

    Create 4000 jobs in 3 years? We have already lost 2000 jobs in the last 6 months. Well, 4000 jobs in 3 years, better than nothing lah I guess. I hope it doesn’t end up being creating 2000 jobs in 5 years (you know politician-talk lah), need to put in some discount.

    @Elmo

    Haha, you are right. Famous screw ups by Spore gov, like Suzhou Industrial Park in China, end up Spore gov lost billions, and that’s because the Chinese gov is smarter than their Sing counterpart. Hehehe!

    The way I see it, do you think they (Temasek) would channel high income jobs to Penang? Why not keep it in Spore? So why hook up with Penang? It’s a no brainer! So that they can offer a complete BPO suite to end customers, they keep the high paying portion, and push the low paying portion to Penang.

    Just like Apple, it makes lots and lots of money selling IPhones, by way of sub-contracting the donkey jobs of manufacturing the hardware to Foxxcon, end up Foxxcon had to go squeeze the production workers until they want to commit suicide. Hehe.

    Again, with the rate of us loosing manufacturing jobs, what choice do we have. Low paying BPO jobs also better than no jobs, right?

  30. Miao
    June 16th, 2014 at 17:59 | #30

    @pragmatic

    RM4-5k a month where got low pay?

  31. Goreng
    Goreng
    June 16th, 2014 at 21:55 | #31

    Wow, both of you are really smarter than Temasek advisors, I suppose, I think penang gomen should be employing you soon. Hahaha, it’s easy to criticize, don’t be talking big here.

  32. pragmatic
    June 16th, 2014 at 22:11 | #32

    @Goreng

    Haha….yup…It’s easy to criticize. I am sure TKong can attest to that…:)

  33. Elmo
    June 16th, 2014 at 22:55 | #33

    Goreng :
    Wow, both of you are really smarter than Temasek advisors, I suppose, I think penang gomen should be employing you soon. Hahaha, it’s easy to criticize, don’t be talking big here.

    I’m not smarter than Temasek advisors. But I’m in Singapore >10 years. All Singaporean knows how much Temasek investment lost. It is transparent and not like Malaysia where the $$ goes too. I honestly can tell you high income still goes to KL not Penang. I know where all the back-office who is Singapore moved to. Little examples, Citibank, SCB, Shell, BP mostly to KL and Philippines. We are not talking millions of investment but US$billions into KL. Infra in Penang still not as advance as in KL. That’s why Singaporeans are losing jobs now. Only left the front office traders and front office supports team in Singapore.

  34. Alan chung
    June 16th, 2014 at 23:10 | #34

    The BPO building still maintain at lower height, it should build at least comparable or higher than the current highest buiding in Penang to become an icon or landmark to attract people.

  35. Alan chung
    June 16th, 2014 at 23:24 | #35

    U may say that area can’t build higher, fine, but this theory apply to town area also which can build higher.

  36. Limpeh
    June 17th, 2014 at 00:05 | #36

    @Elmo
    Citibank, Airasia, SPAD, sand semiconductor has moved to 1 precinct and they signed a 12 year contract. The demand for corporate offices with MSC status is high.

  37. old news
    June 17th, 2014 at 01:57 | #37

    Thats why Bayan baru and bayan lepas property is so hot these few years. News of this plan already out a couple years ago. Everybody queued to buy a property here since then.

  38. JBond
    June 17th, 2014 at 06:26 | #38

    Not sure how those 4000 subcontract jobs can help to boost the property market, but at least can help those restaurant in One World and D’Piazza. Many already close shop d. I think the hawker centre in Sunshine market will be benefit most. Rm4k-5k salary may not afford every meal dine with >RM10 in air conditioned restaurants around, with so many financial burden nowadays.

  39. penang
    June 17th, 2014 at 06:44 | #39

    Temasek lost for investment? Here is the highlight of their performance in 2013

    Performance[edit]
    Temasek delivered a record net portfolio value of S$215 billion (US$ 173 billion), with a net cash position (up S$17 billion from S$198 billion the previous year).This marked an increase of S$154 billion over the past 10 years.[3]
    Over 73% of Temasek’s portfolio was held in liquid and listed assets.[3]
    Temasek invested a total of S$20 billion and divested S$13 billion during the year. Net investments for the year amounted to S$7 billion.[3]
    Temasek’s Total Shareholder Return (TSR) for the year was 8.86%. Compounded annual return to shareholder over the past decade was 13% while TSR since the company’s inception in 1974 was 16%.[3]
    Group Shareholder Equity increased to S$169 billion, including fair value reserve of S$13 billion, and Group Net Profile was at S$11 billion.

  40. kedah
    June 17th, 2014 at 07:30 | #40

    kedah state begins to give fight to penang already.

  41. kedah
    June 17th, 2014 at 07:31 | #41

    soon all electronics move to kedah?

  42. pragmatic
    June 17th, 2014 at 08:18 | #42

    @penang

    You earn some, you loose some, I guess. Here’s some info :-

    In Year 2011 – “……it faces a 6.7 billion Swiss franc ($7.4 billion) loss as the biggest investor of UBS AG (UBSN), topping unprofitable banking investments by the city’s sovereign wealth firms since 2007…..”

    In Year 2008 – “…. Temasek Holdings Pte, reeling from the aborted appointment of Charles “Chip” Goodyear, said the value of its assets slumped by more than S$40 billion ($27.7 billion) and……..”

    They seemed to have lost quite a bit of money quite often in their overseas ventures, but maybe gain back some in domestic investments, as they have large stakes in domestic companies that enjoy “protected” monopolies. The way they burn money overseas is not something new, as various reports have highlighted the issues for many years.

    I guess that’s why they have been looking for an ang moh CEO to run the company hoping that he would improve their investment skills overseas. But unfortunately, more often than not, these almost-retired ang mohs, having only a few more years to go in their career, asked for millions in salary, screw things up for them, then say bye bye and retire. Hahaha!

  43. pragmatic
    June 17th, 2014 at 08:20 | #43

    They seemed to have lost quite a bit of money quite often in their overseas ventures, but maybe gain back some in domestic investments, as they have large stakes in domestic companies that enjoy “protected” monopolies. The way they burn money overseas is not something new, as various reports have highlighted the issues over the years.

  44. Bond
    June 17th, 2014 at 09:07 | #44

    Don’t care who they are or how dumb are them, as long as they inject money here then is good investor. Just like those water fish arab investors in the Iskandar region in johor.

  45. Miao
    June 17th, 2014 at 09:50 | #45

    IKEA in coming… Premium Outlet is coming… BPO hub is coming… all sound promising… waiting for monorel…

  46. property
    June 17th, 2014 at 10:22 | #46

    BB is aldready an well established township with all the facilities available and near to the industrial zone. With the SPICE to be fully completed within 3 years and coming BPO, this area is going to fly high soon..

  47. pragmatic
    June 17th, 2014 at 10:32 | #47

    @Bond

    Haha, you are right. For this deal, PDC is probably not coming up with any cash, they just give land, and value it at RM100+ mil, whereas the 2 buildings would cost about RM100mil to build, therefore 49% Temasek & 51% PDC. Of course, Temasek don’t just give you money for nothing. They want to further develop BPO industry in Spore, but certain portion of that BPO job could be too expensive to be done in Spore. So they keep the expensive part in Spore, and push the cheap part to Penang. In the end, we get some new BPO jobs to compensate for those mfg jobs lost and will be loosing. Better than nothing.

  48. cl
    June 17th, 2014 at 10:41 | #48

    Agreed. Temasek will not involve if there is high risk or no benefit. But it already definately will bring the opportunity for PNG rather we dont have any significant dev project action previously. This is combination with Spice, Relau and Sungai Ara development. We are ready for the infrastruture such as houses to support the BPO development. Great effort, PNG goverment with the future vision. Lets wait and see.

  49. Hock Hin
    June 17th, 2014 at 11:12 | #49

    Any development around Bayan Baru and Bayan Lepas areas will be good news for all

  50. Chris
    June 17th, 2014 at 14:10 | #50

    I know it’s nice to be optimistic but realistically it’s likely a better-than-nothing situation. I’m not exactly big boss/CEO of any MNC but don’t they only outsource for flexibility or cost savings?

    If the outsourcing companies are setup by locals, employees surely get less benefits compare to working directly in any MNC, on top of getting paid less. The only ones getting richer might be outsource company bosses.

    Do take into consideration jobs in BPO can consist from lowly admin clerks to licensed accountant/lawyers, so it all depends on who will occupy the new building. Also, what’s “High income” to politicians anyway? RM2500? That’s higher than the Malaysian average pay already.

  51. LOL
    June 17th, 2014 at 15:20 | #51

    was thinking before what if penang become a country like singapore! hahahahahaha

  52. pragmatic
    June 17th, 2014 at 15:44 | #52

    @LOL

    Like Spore? You mean as kiasu and kiasi as Sporeans? Well, as long as our gov knows how to control housing price, we won’t have to go that territory. People become extremely kiasu and kiasi when it’s difficult to make ends meet. So far, we are doing OK. I hope things will become better, not worse, moving forward.

  53. pragmatic
    June 17th, 2014 at 15:44 | #53

    @LOL

    Like Spore? You mean as kiasu and kiasi as Sporeans?

  54. pragmatic
    June 17th, 2014 at 15:46 | #54

    We need to carefully control housing price, so that we won’t have to go kiasu territory. People become extremely kiasu and kiasi when it’s difficult to make ends meet, and our soceity become overly materialistic. So far, we are doing OK. I hope things will become better, not worse, moving forward.

  55. pragmatic
    June 17th, 2014 at 15:53 | #55

    People become extremely kiasu and kiasi when it’s difficult to make ends meet, and our society become overly materialistic. So far, we are doing OK. I hope things will become better, not worse, moving forward.

  56. Steve
    June 17th, 2014 at 17:03 | #56

    Can’t complaint too much. 4000 jobs created. Temasek coming to Penang.
    Most important Singapore people like Penang also. Safer than kl and johor.
    As a penangnite we don’t lose anything. I fully support this project.

  57. ben
    June 17th, 2014 at 18:33 | #57

    How about bukit tambun?

  58. granpa
    June 17th, 2014 at 19:51 | #58

    what about bukit tambun?

  59. pragmatic
    June 17th, 2014 at 20:03 | #59

    Singapore employees among the least satisfied in APAC: Randstad Workmonitor Survey –

    ….Country Director of Randstad Singapore, Mr Michael Smith, said that with today’s rising cost of living, it is not surprising that many of Singapore’s workforce view their jobs solely as a means to put food on the table…….

    I hope we are wise enough not to fall into that trap!

  60. pragmatic
    June 17th, 2014 at 20:04 | #60

    Spore employees among the least satisfied in APAC: Randstad Workmonitor Survey –

    ….Country Director of Randstad Spore, Mr Michael Smith, said that with today’s rising cost of living, it is not surprising that many of Spore’s workforce view their jobs solely as a means to put food on the table…….

    I hope we are wise enough not to fall into that trap!

  61. pragmatic
    June 17th, 2014 at 20:05 | #61

    Spore employees among the least satisfied in APAC: Randstad Workmonitor Survey –

  62. pragmatic
    June 17th, 2014 at 20:06 | #62

    “……said that with today’s rising cost of living, it is not surprising that many of Spore’s workforce view their jobs solely as a means to put food on the table…….”

    I hope we are wise enough not to fall into that trap!

  63. Elmo
    June 17th, 2014 at 20:53 | #63

    pragmatic :
    “……said that with today’s rising cost of living, it is not surprising that many of Spore’s workforce view their jobs solely as a means to put food on the table…….”
    I hope we are wise enough not to fall into that trap!

    I’m one of them lor. Job solely as means to put food on the table. Anywhere LGE likes to seek advise from Mr Lee..that is why LGE development and administration pretty similar to Singapore. Penang is like Singapore 20 years back. But one thing about Singapore.. in flunk of foreigners killed the locals but no choice for their economy growth. Now SG gov controlling the in flunk after so much complains from locals.

  64. Miao
    June 17th, 2014 at 22:23 | #64

    @pragmatic

    We want more high paying jobs like these, it makes almost everyone happier…lol

  65. advice
    June 17th, 2014 at 22:35 | #65

    If ur looking for a place to stay,my advice is better buy n Don‘t wait. Price will never come down. Car can buy later because it may get cheaper later but house price keep goin up.

  66. pragmatic
    June 17th, 2014 at 23:20 | #66

    @Miao

    Actually, if you think deeper, higher paying jobs without proper control of property prices will put everyone back in square one. That’s why Sporeans are not happy…:)

  67. Khi
    June 18th, 2014 at 08:05 | #67

    @Miao
    When u get high u will pay high. ultimately there is no difference

  68. Miao
    June 18th, 2014 at 09:23 | #68

    @Khi

    You mean we should forever get low pay?

  69. Hock Hin
    June 18th, 2014 at 09:39 | #69

    Everyone benefit

  70. pragmatic
    June 18th, 2014 at 09:41 | #70

    @Miao

    Nope, we should keep working hard, increase productivity, as well as pay. PLUS, it is very important to control the price of housing, so that you don’t have to pay so much for housing, therefore leaving more disposable income for consumption and investment…:) Well, let’s see how good our gov is in balancing policy to improve our quality of life.

  71. pragmatic
    June 18th, 2014 at 09:50 | #71

    @Miao

    The absolute numbers of your salary mean nothing. It’s how much you can do with it matters.

  72. Miao
    June 18th, 2014 at 09:53 | #72

    @pragmatic

    Higher income can do more things… this also wrong?

  73. pragmatic
    June 18th, 2014 at 10:00 | #73

    @Miao

    Nothing wrong. Keep working hard and be productive. That’s your part. The gov’s part is to minimize unemployment, and make sure the majority of people are happy. Very simple mission.

  74. Miao
    June 18th, 2014 at 10:24 | #74

    The BPO hub concept is a good progression for Penang to move up the value chain. If we do well, more BPO businesses will move here. Will positively impact all surrounding business for sure..

  75. pragmatic
    June 18th, 2014 at 10:32 | #75

    @Miao

    What makes you think that BPO is moving up the value chain? Do you know what jobs BPO provides? Hehe.

  76. Miao
    June 18th, 2014 at 10:47 | #76

    @pragmatic

    You can ask people working in Suntech and One Precint.

  77. Balls
    June 18th, 2014 at 11:36 | #77

    Guys … relax. Everyone have the rights to their own opinion.

    Having a project is better than no project. Similarly, having a job is better than no job. “High Income” is just a point of perspective. A fresh grad may find RM3,500 a high income while an experience executive will deem RM5,000 or more to be high income. A senior engineer that receives RM8,000 or more may find this a downgrade but BPO don’t really need a specialised set of knowledge right?

    Besides, any matured city in the world that pays highly also has high standard of living ie. higher expenses, more expensive properties etc. So, if generally employers start paying employees higher wages, expect property prices to go up or if employees start demanding higher wages/salary, employers/businesses will charge more for their products and everything in the economy will go up. Economics 101. If property prices is going up but your income is not going up, then you should be asking why there are still so many people able to buy these properties when you can’t. Obviously, you are doing something wrong or you’re not in the right job. Like Bill Gates say, “It’s not your fault being born poor. But it’s your own fault if you die poor”

    ^ Above is just my opinion. I expect many people will be sarcastic and blast me. :)

  78. Elmo
    June 19th, 2014 at 09:40 | #78

    Will jalan or not this project still in early stage. The agreement between Temasek and Penang Development MUST be complemented by an upgrade of Penang International Airport. So in others words.. tan ku ku as federal gov may / likely to channel RM2 bil to Kulim airport. Penang only requested RM600 mil also tak ada.

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