PDC to offer maximum 60-year lease for BKIP 3 land

Property News/ 24 February 2024 Leave a comment


The Penang Development Corporation (PDC) will lease industrial land to investors for a maximum duration of 60 years following the completion of Batu Kawan Industrial Park 3 (BKIP 3) construction, according to PDC chief executive officer Datuk Aziz Bakar.

On Feb 16, Prime Minister Datuk Seri Anwar Ibrahim officiated the groundbreaking ceremony of BKIP 3, the 10th industrial park under development by PDC, located in Bukit Tambun, Seberang Perai.

Spanning a net area of 407 acres, BKIP 3 is slated for completion in August 2031, with four development phases planned. Phase 1A, covering 60 acres, is expected to be finished in 2025.

“The development of BKIP 3 differs from BKIP and other PDC industrial parks in terms of land ownership.

“Due to the changes in technological advancements within a short period and the challenge of acquiring new industrial land in Penang, PDC will adopt a lease concept. Investors will be granted leases for industrial land for a maximum period of 60 years.

“PDC will also implement the ‘Infra Ready Concept,’ ensuring availability in terms of infrastructure. Close collaboration with Tenaga Nasional Berhad (TNB) is underway to realise this new approach.

“BKIP 3 will also be equipped with additional support facilities, such as employee housing and a logistics hub.

“PDC also emphasises sustainable development where the use of green energy, green buildings and recycling practices, particularly in water management, is encouraged,” Aziz told Buletin Mutiara when asked.

Through the development of BKIP 3, Aziz said PDC aims to sustain the growth of industries akin to BKIP, focusing on electronics and electricity (E&E), medical devices, machines and equipment, engineering and automation. These sectors will remain a priority for ongoing attention.

In addition, local companies that support Penang’s industrial ecosystem will also be given attention.

Asked about the challenges PDC faces in developing BKIP 3, Azis mentioned the increased development costs and the traffic congestion arising from the frequent trips for backfilling works. Furthermore, he noted the distant location of the quarry site poses an additional challenge.

“Another challenge we face is the unsuitability of the existing soil condition, necessitating soil treatment before commencing infrastructure development,” Aziz added.

Upon completion of BKIP 3, Aziz envisions Penang will further solidify its position as the ‘Silicon Valley of the East,’ creating high-income job opportunities.

“The successful completion of BKIP 3 will ensure Penang’s continued substantial contribution to the Malaysian economy through the attraction of high-impact investments.

“In addition, the positive impact on the development of Bandar Cassia, the third satellite city by PDC, is also anticipated.

“I am optimistic that Penang will emerge as the preferred choice for businesses, local and international, even in the face of stiff competition from other states like Selangor, Johor and Kedah,” Aziz said.

Source: Buletin Mutiara

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