THMY Upsizes New Batu Kawan Factory to RM172.6mil — Five Times the Original Budget

THMY Holdings Bhd (KL:THMY), a provider of automated test solutions for the electrical and electronics (E&E) industry, has dramatically expanded the plan for its new factory and corporate headquarters at Batu Kawan Industrial Park. Construction of the upsized project is now expected to cost RM172.6mil — about five times the RM29.35mil pegged in its IPO prospectus — the group said in a Bursa Malaysia filing on 30 July 2026.

Three times the floor, five times the budget

The new plan more than triples the built-up area to 300,800 sq ft, of which 222,000 sq ft is production space, compared with the initially planned 88,000 sq ft (70,000 sq ft production). The project comprises a five-storey office building and a three-storey factory and warehouse, on the same site as the original plan — close to the group’s current Batu Kawan factory.

The upsizing follows customer enquiries for advanced automated test solutions and system-level automated test solutions, with demand driven by continued investment in the technology, media and telecommunications (TMT) industry — including networking — and the broader E&E industry. At its groundbreaking on 9 July, THMY said the factory will initially accommodate 20 advanced automated test solution workstations, and pointed to growing demand across data centre, artificial intelligence and cloud computing applications.

Supporting these advanced solutions requires higher mechanical and engineering (M&E) specifications: a Class 10,000 cleanroom, upgraded power supply, increased floor loading capacity, a larger air-conditioning system, plus additional structural and engineering works. THMY also attributed part of the higher bill to rising construction material and labour costs, and noted the RM172.6mil excludes certain fit-out and ancillary works whose scope is not yet determined.

Funding and timeline

RM22.9mil of the cost comes from IPO proceeds earmarked for the factory; the remainder will be covered by internally generated funds, bank borrowings and/or a future equity fundraising. The larger project does not require shareholder approval. Site clearance has commenced and completion is targeted for the second quarter of 2028.

THMY listed on Bursa Malaysia on 23 October 2025 at 31 sen; the counter closed at RM1.78 on 30 July, valuing the group at RM1.58bil — up more than fivefold since listing. Executive director and CEO Ooi Can Nix said the investment positions THMY to capture growing opportunities while laying the foundation for its next phase of growth.

What it means for Batu Kawan industrial space

• The corridor’s demand story keeps compounding. A homegrown firm barely a year past listing is committing RM172.6mil to new capacity in Batu Kawan — the same corridor where PDC has just taken over the 1,300-acre BKIP2 to keep industrial land supply ahead of demand.

• Specification inflation is real. Cleanrooms, heavy floor loading and upgraded power are becoming standard asks for advanced E&E occupiers. Older basic factories will find it harder to serve this tenant class — and purpose-built or build-to-suit facilities will command the premium.

• Budget accordingly. THMY openly attributes part of the fivefold cost jump to higher construction material and labour costs. Anyone planning an industrial build in Penang today should stress-test 2023-era construction budgets.