Penang Development Corporation (PDC) will take full control of the proposed Batu Kawan Industrial Park 2 (BKIP2) development in Byram after the renewed Request for Proposal (RFP) process failed to reach a successful conclusion.
Chief Minister Chow Kon Yeow said the decision was approved by the PDC Board of Directors on July 20, paving the way for PDC to develop its approximately 1,300-acre landbank in phases.
Speaking after attending the Malaysian International Chamber of Commerce and Industry (MICCI) Northern Region Annual Luncheon Dialogue, Chow said the phased approach would allow PDC to release around 200 acres of industrial land each year to meet demand from investors and other stakeholders.
He explained that land prices for BKIP2 would be based on current market values, noting that acquisition costs today are significantly higher than those for the original Batu Kawan Industrial Park, where land was acquired in the early 1990s at much lower prices.
According to Chow, the phased development strategy is intended to ensure Penang maintains sufficient industrial land reserves to support investment demand over the next three to five years.
He also stressed that the proposed bridge connecting the development area must be completed to support the overall growth and accessibility of the new industrial park.
BKIP2 is expected to play an important role in expanding Penang’s industrial capacity as demand for strategically located industrial land continues to grow, particularly in the Batu Kawan growth corridor.
