PENANG is on the brink of establishing its own Integrated Circuit (IC) Design and Digital Park, encompassing a sprawling million square feet (sqft) of prime office space, including the existing Innoplex building, within the Bayan Lepas Industrial Park.
Covering 105 acres within the Bayan Lepas Industrial Park, this project unfolds in two distinct phases. The first phase is currently underway, featuring the construction of two office buildings: GBS By The Sea and GBS TechSpace. These structures, totalling 350,000 sqft, represent an investment of RM347 million. Completion is slated for the fourth quarter of this year.
The park’s second phase introduces the establishment of another prominent structure, GBS TechnoPlex, at RM308 million. This addition will contribute an extra 500,000 sqft to the project by 2027.
Chief Minister Chow Kon Yeow announced the ambitious plan, underscoring Penang’s commitment to fostering innovation, driving growth in key industries, and attracting top-tier talent to the state.
“Construction for both phases commenced early last year. Once completed, the park will host high-impact initiatives spanning IC Design, research and development (R&D), Global Business Services (GBS), digital technology investments, and a circular digital economy ecosystem.
“In the first phase, the offices will boast high-spec building features alongside cutting-edge engineering lab facilities. Additionally, ample parking bays for up to 1,000 vehicles will be provided.
“We strive to be at the forefront of the digital economy sector through this initiative,” he said at a press conference at the Penang Development Corporation (PDC) in Bayan Lepas today.
Chow mentioned the state was now formulating an incentive package for strategic investors keen to enhance and complement the park.
“The incentives are designed to bolster Penang’s current investment ecosystem. Furthermore, our vision includes enriching the park with contemporary amenities such as safe pedestrian-friendly walkways, bicycle lanes, park-and-ride facilities, and designated areas for recreational activities.
“These enhancements are poised to fortify Penang’s standing as the premier investment destination for businesses.
“The existing area is already home to key players in the GBS and IC Design industries, including industry giants like Intel, Motorola, AMD, Microchip, UST Global, Siemens, and Zebra.
“Additionally, we anticipate unveiling four more prominent global investors soon,” Chow said.
Chow emphasised that the manufacturing and services sectors remain the state’s twin engines of growth, pointing out that both sectors contributed 95% of the state’s total revenue.
“We are now seeing an increasing demand from the digital economy sectors, particularly the IC Design, R&D and GBS. We have garnered nearly RM20 billion of approved investments in the services sector over the past five years.
“Penang boasts a thriving ecosystem of over 200 Malaysia Digital Status companies.
“Moreover, we are witnessing the rise of third-party service providers, including IC Design and knowledge-based solutions firms, alongside the established players in Penang.
“Over the last three decades, Penang has nurtured more than 20 specialised IC Design companies, featuring a strong presence from global leaders like Infineon, Lattice, Synopsys, and Efinix.
“Penang is also home to several homegrown IC design enterprises, including Oppstar Technology, SkyeChip, and Infinecs Systems, among others,” he said.
To bolster the promotion of IC Design, Chow announced that the state would be offering subsidised rental rates for office spaces. Additionally, he mentioned that the state would seek incentives from the Federal Government to reinforce the ecosystem.
Chow also commended PDC and InvestPenang for their role in spearheading the development.
Also present during the media conference were former Chief Minister Lim Guan Eng, state Tourism and Creative Economy Committee chairman Wong Hon Wai, state Local Government, Town and Country Planning Committee chairman H’ng Mooi Lye, Air Itam assemblyman Joseph Ng, Berapit assemblyman Heng Lee Lee, Batu Lancang assemblyman Ong Ah Teong, and Bagan Jermal assemblyman Chee Yeeh Keen.
Others who attended include Penang Hill Corporation (PHC) general manager Datuk Cheok Lay Leng, PDC chief executive officer Datuk Aziz Bakar, and State Secretary Datuk Rosli Isa.
Story by Edmund Lee
Pix by Alissala Thian
Video by Muhamad Amir Irsyad Omar