Good take-up for first phase of Penang Technology Park@Bertam - MIDA | Malaysian Investment Development Authority
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Good take-up for first phase of Penang Technology Park@Bertam

Good take-up for first phase of Penang Technology Park@Bertam

22 May 2023

GEORGE TOWN: Ideal Capital Bhd has sold about 30% of the first phase of the Penang Technology Park (PTP)@Bertam since its launch in March 2023.

The sold industrial phase comprises vacant industrial lots and light and medium industrial factories priced between RM65 and RM90 per sq ft.

“Besides the sales, many potential investors from the United States, Europe, Taiwan, and China have registered with us,” group executive chairman Tan Sri Ooi Kee Liang told StarBiz.

These customers are involved in the electronics assembly and manufacturing, medical devices, trading, warehouse and logistic business.

PTP is near an established neighbourhood with several thousand well-planned landed properties, offering residential options for employees and professionals working there.

“The Penang Golf Resort, a water theme park and hotels, three hypermarkets and a commercial centre are also close to the neighbourhood.

“These amenities contribute to the overall appeal and convenience of the location, making it an attractive destination for businesses and employees,” Ooi said.

The PTP has a RM4.2bil gross development value that will be realised over the next four years, according to Ooi. “We are spending RM150 per sq ft to develop the infrastructure for our industrial park.”

According to Ooi, the group has completed clearing PTP’s first phase comprising 244 acres for infrastructure work.

“We are now carrying out earthwork activities, scheduled for completion at the end of June. Piling works for a few factories will also commence at the end of next month,” Ooi added.

The infrastructure development for the first phase is targeted for commencement in the second half of 2023.

According to Ooi, the demand for industrial properties has stayed the same since the pandemic started three years ago.

“The relocation of factories from China and Taiwan to other parts of Asia sustains the demand for industrial properties in Malaysia, particularly Penang, where a reliable small and medium enterprise support eco-system exists.

“Reopening the country’s borders in April last year positively impacted the sector.

“According to the National Property Information Centre, there was a transaction volume of 6,043 units of industrial properties in the first nine months of 2022 with an accumulated transaction value of RM15.2bil, compared with the full-year transaction volume of 5,595 units and total value of RM16.9bil in 2021,” Ooi said.

In Penang, for the second and third quarters of 2022, the transacted value of industrial properties totalled RM851mil involving 289 properties, comprising largely vacant plots and light industrial units.

“Although Bank Negara has raised the overnight policy rate (OPR) to 3%, the rates do not hinder the implementation of business expansion plans, especially when there’s still demand for industrial properties.

“Malaysia’s OPR is still the lowest in South-East Asia,” Ooi said.

According to the Malaysian Investment Development Authority, in 2022, Penang roped in RM13.7bil in approved manufacturing investments, while the country attracted RM264.6bil approved investments.

The state received RM9.7bil (71%) in foreign direct investment and RM4bil (29%) in domestic direct investment for manufacturing in 2022.

“The investments involved 135 projects and are expected to generate 15,752 new job opportunities in the state.

“These investments will fuel the demand for industrial properties and technology parks.

“We can, therefore, expect the industrial sector in the country, especially Penang, to grow moderately even when the global economy experiences a slowdown,” Ooi said.

The PTP project will provide a steady revenue stream to the group in the medium term, Ooi added.

PTP has also attracted much interest because of its proximity to the North-South Highway Bertam Toll and Butterworth-Kulim Expressway.

The PTP is 23 kms to the Penang Port in Butterworth and 42 kms to the Penang International Airport.

Ooi added that the PTP would attract skilled workers from overseas.

Upon completion, the industrial park is expected to create at least 30,000 job opportunities for locals.

“PTP provides an option for the talent overseas to return to work close to their homes.

“The multinational corporations at PTP will also be able to generate jobs for graduates of local post-secondary and tertiary educational institutions.

“PTP is near Universiti Teknologi Mara and Universiti Sains Malaysia.

“There also is an Industrial Training Institute to further the development of a skilled workforce for the industrial park.

“These graduates don’t have to leave the country to look for jobs.”

Source: The Star