GEORGE TOWN: The Penang Improvement Corp (PDC) will develop between 100 and 150 acres of business land yearly in Batu Kawan over the following three years.
In accordance with particular adviser to Penang Chief Minister Datuk Seri Lee Kah Choon (pic), the demand for industrial land in Penang is robust.
“Because of the pandemic, digital uncooked materials hubs, together with China, have both ceased operations quickly or encountered issues transport out both uncooked supplies or intermediate parts thus disrupting the worldwide electronics manufacturing processes.
“Electronics manufacturing providers suppliers at the moment are trying to relocate to Penang to be near the provision chain right here.
“We’re additionally seeing firms from China relocating right here due to the US-China commerce battle. The take-up fee of business land in Batu Kawan has remained sturdy since 2020,” Lee informed StarBiz.
PDC has greater than 3,000 acres of land primarily within the Batu Kawan space that may be transformed into industrial utilization.
“There are 1,000 acres within the east of Batu Kawan and an additioanal 1,500 acres in Byram Property. Subsequent to Aspen Vison Metropolis, there is a complete of 300 acres. For the following three years, PDC’s plan is to develop between 100 and 150 acres of business land each year,” he added.
One Asia Property Consultants (Pg) Sdn Bhd govt director Chandra Mohan Krishnan stated within the second half of 2021, the transactions for industrial land in Batu Kawan hit about RM100mil.
“Three manufacturing firms had been behind the transactions to buy about 36 acres of business land at RM55 per sq ft.
“The preliminary information means that Penang’s industrial section was energetic in 2021, and there’s cause to consider that the development will proceed within the close to to medium time period.
“One can due to this fact anticipate to see will increase in costs and rents in Penang’s industrial sector,” he stated.
In 2019, the transactions for industrial land in Batu Kawan was RM45 per sq ft. The worth per sq. ft has now surged to between RM55 and RM65 per sq ft.
“There are some 60 giant firms establishing their crops in Batu Kawan at the moment.
“Smith & Nephew and Lam Analysis had been among the many huge multinational firms that invested in Batu Kawan in 2020 and 2021,” Chandra stated.
On the island, Intel is constructing its RM30bil plant at Bayan Lepas Industrial Park.
“It is a huge increase for Penang’s industrial sector as Intel contributes about 10% of Malaysia’s complete digital exports yearly, which is equal to about 40% of the nation’s RM980bil complete exports,” he stated.
He added that traders had been additionally eyeing Kepala Batas in its place web site for industrial initiatives as land costs in Batu Kawan surged.
“The Kepala Batas Industrial Park is now being deliberate, and it’s focused to be operational by the second half of 2023. The venture has began to attract consideration from US and German traders. We anticipate the economic sector in Penang to develop healthily in 2022 and 2023,” he stated.