Penang has delivered 176,457 affordable housing units under its Rumah MutiaraKu (RMKu) programme, achieving 80.21% of its target of providing 220,000 units by 2030.

Chief Minister Chow Kon Yeow announced the figures when tabling the Penang 2027 State Budget at the State Legislative Assembly, highlighting the state government’s continued focus on expanding affordable housing opportunities.

He said the state would continue strengthening its housing agenda through additional RMKu developments, Rent-to-Own (RTO) schemes, urban renewal initiatives and the utilisation of suitable land for housing projects.

Under the Penang Housing Board’s 2021–2030 development blueprint, 22 projects have been identified, comprising 13 RMKu developments and nine urban renewal projects. These initiatives are expected to deliver a further 18,342 affordable housing units.

The state is also looking into changing housing needs, particularly among single individuals and elderly people living alone. In 2027, the Penang Housing Board will explore co-living concepts, potentially introducing them to selected state-owned rental housing and People’s Housing Programme (PPR) units.

Meanwhile, the state government has approved 578 residential lease extension applications since 2025, covering areas including Batu Kawan, Juru, Permatang Tinggi and Jelutong. The approvals allow eligible landowners to extend their lease tenure to 99 years.

Chow encouraged eligible landowners to submit their applications to their respective district and land offices in 2027.

On land taxation, Penang’s land tax review implemented in 2026 marked the first adjustment in 32 years. As at October 29, 2026, land tax collections reached RM167.59 million, an increase of RM51.54 million or 44.41% compared with RM116.05 million in 2025.

Despite providing a 50% land tax rebate and approving appeals for reductions, the state recorded higher collections. The government has agreed to continue the 50% rebate in 2027, subject to applicable conditions.

Penang has been named the world’s most budget-friendly city for digital nomads, topping a new international study that compared 26 cities across 15 countries.

The study, conducted by digital marketing agency Click Intelligence and featured in Moneywise in October, gave Penang an overall score of 0.78, placing it ahead of several popular destinations in Asia and Europe.

Busan in South Korea came second, followed by Kuala Lumpur in third place. Fukuoka and Seoul, both in South Korea, completed the top five. Other cities in the top 10 included Tartu, Chiang Mai, Valencia, Osaka and Brno.

The study estimated that living in Penang costs around €850 (approximately RM3,860) a month, including rent. It also highlighted the island’s affordable lifestyle, internet connectivity, safety and access to Malaysia’s DE Rantau Nomad Pass, which allows eligible remote workers to stay in the country for 12 months, with an option to renew.

Click Intelligence co-founder and director James Owen noted that language is rarely a barrier in Penang, where English is widely spoken, while Malaysia is generally considered a safe place to live.

Penang Tourism and Creative Economy Committee chairman Wong Hon Wai said the recognition reflected the state’s growing appeal among digital nomads and international visitors.

He added that beyond affordable living, Penang’s UNESCO World Heritage status, multicultural heritage, renowned food, vibrant arts scene and natural attractions make it an attractive place to live, work and explore.

The recognition also supports the state’s ongoing efforts to strengthen its tourism industry and creative economy.

Iconic Harmony in Bukit Mertajam

Iconic Worldwide Berhad is preparing for its next phase of growth in Penang, with a new property development targeted for launch in the first half of 2027 as the group looks to strengthen its position in the state’s property market.

In its 2026 annual report, the group identified property development as its main growth driver for the coming financial year, with plans to maintain its development pipeline following the ongoing Iconic Harmony project in Bukit Mertajam.

Iconic Harmony comprises 751 affordable housing units with a gross development value (GDV) of RM250 million. The project is progressing towards its targeted completion in 2027, with units sold expected to be ready for delivery before the end of that year.

While details of the next development have yet to be disclosed, the planned launch signals the group’s intention to sustain its presence in Penang’s property market.

Property development drives stronger performance

Iconic Worldwide recorded a significant improvement in its financial performance for the financial year ended June 30, 2026 (FY2026), with revenue rising 84.8% to RM87.61 million from RM47.40 million a year earlier.

Property development contributed RM58.55 million, accounting for 66.8% of total group revenue. The segment’s profit before tax also increased to RM9.12 million from RM3.01 million in FY2025.

At group level, profit before tax climbed to RM11.49 million from RM3.06 million, supported by stronger property development performance and improved contributions from other segments.

The results underline the growing importance of property development to the group’s overall business strategy.

Hospitality and manufacturing provide additional support

Beyond property development, Iconic Worldwide is looking to strengthen its hospitality and manufacturing businesses.

Its hospitality services segment recorded a 50.7% increase in revenue to RM9.65 million in FY2026, returning to a profit before tax of RM408,000. The group expects further contributions from improved marketing, visibility and service delivery.

Meanwhile, its manufacturing segment is expected to benefit from rental income generated by leasing its manufacturing facilities to a third party, which commenced in April 2026.

Execution will be key

Looking ahead, the group faces the challenge of sustaining growth amid competition, construction costs and increasingly selective homebuyers.

Its annual report highlights affordability, location, connectivity and timely project delivery as important factors influencing property demand.

For Iconic Worldwide, completing Iconic Harmony and preparing its next Penang development for launch will be key priorities in the coming financial year.

With property development firmly established as its main growth driver, the next phase will be crucial in determining whether the group can maintain its financial momentum and build a more sustainable development pipeline in Penang.

Titijaya Land Bhd is disposing of its logistics hub in Bayan Lepas, Penang, to government-linked property investor Pelaburan Hartanah Bhd for RM300 million, in a deal expected to unlock significant value for the property developer.

The proposed disposal price is nearly double the property’s net book value of RM156 million as at June 30, 2026. The transaction is expected to generate a net gain of approximately RM143 million after estimated expenses.

In a Bursa Malaysia filing, Titijaya said its wholly owned subsidiaries, Aman Duta Sdn Bhd and City Meridian Development Sdn Bhd, entered into a conditional sale and purchase agreement with Pelaburan Hartanah on October 26.

The property comprises 7.06 acres of leasehold land housing Penang Logistics Hub 5, a three-storey logistics commercial complex with a gross floor area of 300,726 sq ft. The facility is currently leased to DHL Properties (Malaysia) Sdn Bhd until October 2034.

Titijaya said the divestment aligns with its strategy of selectively monetising completed investment properties at optimal prices, allowing it to unlock asset value and recycle capital into future growth opportunities.

The sale is also expected to reduce the group’s finance costs following the settlement of the remaining borrowings secured against the property. Upon completion, Titijaya’s net assets per share would increase from RM0.97 to RM1.08, while its gearing ratio would decline from 0.18 times to 0.06 times.

Pelaburan Hartanah is owned by Yayasan Pelaburan Bumiputra, a government-linked entity focused on increasing Bumiputera economic participation and wealth creation. Its activities include investment in commercial real estate, property development, and property and asset management.

The proposed disposal does not require shareholder approval and is expected to be completed in the first half of 2027.

Penang’s semiconductor industry continues to attract investment from local companies, with homegrown engineering firm Estek Automation Sdn Bhd opening a new RM20 million manufacturing plant at Batu Kawan Industrial Park (BKIP).

Spanning approximately 50,000 sq ft, the new facility brings together semiconductor equipment manufacturing, artificial intelligence (AI)-driven solutions and contract manufacturing, giving the company more room to expand its operations and develop new technologies.

Founded in 2015, Estek specialises in semiconductor automation equipment and intelligent manufacturing solutions. Its latest investment reflects the growing role of Malaysian engineering companies in supporting the country’s semiconductor industry.

Chief Minister Chow Kon Yeow, who officiated the opening, said the investment was an encouraging sign of the progress made by local engineering firms in building their own capabilities and delivering higher-value solutions.

He added that the Penang government would continue working with industry players and relevant agencies to strengthen the state’s investment ecosystem and support the growth of local businesses.

Estek Automation chief executive officer Jacky Lee said the new plant would allow the company to increase its manufacturing capacity while strengthening its engineering and research and development (R&D) capabilities.

He also expressed confidence in Penang and Malaysia as destinations for advanced manufacturing, pointing to the state’s established semiconductor ecosystem, which includes multinational companies, a strong supply chain and a skilled workforce.

Beyond expanding production, Estek aims to develop more Malaysian-made technologies and capture a greater share of value within the global semiconductor supply chain.