Penang Chief Minister Chow Kon Yeow has reassured stakeholders that the state possesses adequate industrial land reserves to support economic expansion for the next 10 to 15 years, despite widespread concerns over land scarcity.
Speaking at the launch of the Penang State Industrial Master Plan 2030 at Eastin Hotel in Bayan Lepas, Chow highlighted that the state’s development strategy is tailored to meet the unique demands of each industry, rather than adopting a one-size-fits-all approach such as vertical expansion.
“It depends on the industry,” Chow said. “We already have sufficient land planned to accommodate industrial production capacity for the next decade or more.”
He revealed that over 2,000 acres of industrial land are currently in various stages of planning and development, including land acquisition, reclamation, and request-for-proposal (RFP) exercises. With an annual demand of about 100 acres, he noted that land supply is more than sufficient. As an example, he cited the Batu Kawan Industrial Park, which spanned 1,000 acres and has supported industrial growth for nearly 15 years since 2008.
“Not all investors require new land. Many expand existing facilities or prefer to move into ready-built factories for faster setup,” Chow added. He pointed out a growing private sector trend of developing such factories for rent or sale, particularly to meet the expectations of fast-moving foreign investors, including those from China.
While land sales bring in relatively low direct revenue, Chow emphasized that the long-term value lies in attracting quality investments, which is spearheaded by the Malaysian Investment Development Authority (MIDA).
He also underscored the importance of a holistic industrial ecosystem, stressing that infrastructure must go beyond land. “Industrial development requires access to utilities, skilled talent, supply chains, and efficient transport,” he said.
On foreign labour, Chow reaffirmed the state’s commitment to responsible planning. Centralised Labour Quarters (CLQs) will be introduced within or close to industrial zones to provide proper housing for foreign workers. “We will not allow foreign workers to stay in residential housing areas, as this is not permitted under the law,” he stated.
The master plan aligns with Penang’s broader vision under the State Structure Plan 2030 (RSNPP2030), aiming to position the state as a smart, sustainable, and globally competitive industrial hub.
