PDC Takes Full Control of BKIP2 in Byram After Three Failed Tenders
- The PDC board decided on 20 July 2026 to develop the 1,300-acre (526ha) BKIP2 in Byram itself, after three RFP tender rounds failed to appoint a master developer.
- PDC plans to release about 200 acres (80.9ha) of industrial land each year, keeping a three-to-five-year supply reserve for investors in the Batu Kawan growth corridor.
- BKIP2 land will be priced at current market value — acquisition under the Land Acquisition Act 1960 costs far more than the early-1990s Batu Kawan land, which cost only a few sen.
- The bridge linking the development area must be completed first before the park can take shape.
The Penang Development Corporation (PDC) will take full control of the proposed Batu Kawan Industrial Park 2 (BKIP2) in Byram, after three rounds of Request for Proposal (RFP) tenders failed to produce a master developer. The decision was approved by the PDC board of directors on 20 July 2026.
Chief Minister Chow Kon Yeow confirmed the move at a press conference after the Malaysian International Chamber of Commerce and Industry (MICCI) Northern Region Annual Luncheon Dialogue at St Giles Wembley Hotel in George Town on 30 July.
"In regards to BKIP2, it went to tender three times but was not successful due to various reasons, which is why PDC has decided to take charge of the project," he said. "The PDC board of directors have agreed to take full control of the development."
1,300 acres, released in phases
PDC will now develop its roughly 526ha (1,300-acre) landbank in Byram in phases, with plans to make about 80.9ha (200 acres) of industrial land available each year to meet demand from investors and other stakeholders.
According to Chow, the phased approach is designed to keep a sufficient industrial land reserve to meet investor demand over the next three to five years, as demand for strategically located industrial land continues to grow — particularly in the Batu Kawan growth corridor.
He also stressed that the bridge linking the development area must be completed first to support the overall development of the new industrial park.
Priced at today's market — not 1990s Batu Kawan prices
Chow was direct on cost: BKIP2 land prices will have to be calculated based on current market prices. Land for the new park is acquired under the Land Acquisition Act 1960 at present-day values — unlike the original Batu Kawan acquisitions of the early 1990s, when he said the land cost only a few sen.
What this means for industrial land buyers
- One landlord, clearer process. With PDC as the master developer, investors will deal directly with the state agency instead of waiting for a private master developer to be appointed — the model that already built the original Batu Kawan Industrial Park.
- A firmer price floor. Because PDC's own acquisition cost is set at current market value, BKIP2 will not repeat the low entry prices early Batu Kawan buyers enjoyed. Buyers should benchmark against today's Batu Kawan corridor pricing, not historical PDC land prices.
- Supply is scheduled, not sudden. At roughly 200 acres a year, BKIP2 is a metered pipeline. Companies that need large contiguous plots on the mainland now have a visible three-to-five-year runway to plan around — but the bridge completion is the gating item to watch.
Separately: Pulau Jerejak bridge to proceed
At the same press conference, Chow said the planned private-sector development on Pulau Jerejak is set to move forward, with construction of a bridge linking the island to the Queensbay area in Bayan Lepas set to begin. The project covers only a 32.3ha (80-acre) parcel previously jointly owned by UDA Holdings Berhad and PDC — not the entire island — and the bridge is expected to be completed by 2028 or 2029.
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