Sunway and PDC collaborate on the development of BKIP 2

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$SUNWAY / 5211 (SUNWAY BERHAD)'s subsidiary, Umech Land Sdn Bhd, in which they hold a 70% stake, has entered into a joint development agreement with Penang Development Corp (PDC). This partnership aims to develop a 559-acre prime industrial land located in Batu Kawan, Penang. In return, PDC will be granted a land entitlement valued at RM646.02 million, comprising a RM64.6 million deposit and the balance of RM581.42 million to be paid in four installments. Both entities will collaborate on this development, which will be named 'Batu Kawan Industrial Park 2' (BKIP 2).

Before diving into BKIP 2, let's explore what BKIP represents. BKIP refers to an industrial area situated within Seberang Perai. This expansive 2680-hectare industrial park lies at the southern end of the newly developed Batu Kawan Township and is conveniently linked to George Town, the island city, via the Second Penang Bridge. As a result, it has become a favored choice for both local and multinational companies seeking to establish factories in the region. There are two primary reasons behind this selection: the relatively lower land prices compared to Bayan Lepas and the strategic location facilitated by the Second Penang Bridge. Many firms with existing factories in Bayan Lepas have expanded their operations by setting up secondary facilities in Batu Kawan, including notable companies like $INARI / 0166 (INARI AMERTRON BERHAD), $JHM / 0127 (JHM CONSOLIDATION BERHAD), and $PENTA / 7160 (PENTAMASTER CORPORATION BERHAD). Additionally, numerous multinational corporations such as Boston Scientific, HP, and Seagate have also established a presence there. Apart from being an industrial hub, Batu Kawan offers amenities such as shopping malls and educational institutions, including Design Village, IKEA, UOW Malaysia KDU, and Peninsula College.

BKIP was once a subject of significant interest and was predicted by some experts to eventually surpass Bayan Lepas. However, the COVID-19 pandemic had an impact on its development trajectory. Nonetheless, the future outlook for Batu Kawan remains promising, particularly with the forthcoming development of BKIP 2. This development aligns with the vision outlined in NIMP 2030, and it’s worth remembering the statement of the Penang Chief Minister, who asserted that 'The Future of Penang is in Seberang Perai.