Batu Kawan and Bayan Lepas Cited as Models for Large Manufacturers at Industrial Forum

By Chan Wei Chao (REN 39846), Team Leader, Bricksmen Team · IQI Realty Sdn. Bhd. · Updated 12 November 2026

Batu Kawan and Bayan Lepas were held up as examples of industrial areas that attract large manufacturers, at the inaugural Malaysia Industrial Forum 2026 in Petaling Jaya on 11 November. Datuk Stewart LaBrooy, executive chairman of the AREA group of companies, said these areas, along with Kulim and Shah Alam, had taken in big manufacturers on plots of 20 to 50 acres, and in some cases up to 100 acres.

What LaBrooy said

Big plots bring more activity: large manufacturers on these plots created jobs, supply chains and supporting businesses in the surrounding areas.
Ecosystems, not just buildings: “The smart answer in industrial estates is building ecosystems, not just industrial estates, not just buildings,” he said.
Small units are a different product: he contrasted this with rows of repeated factory units of 6,000 to 25,000 sq ft. He said these are often designed for investors rather than manufacturers. They can be profitable for developers but do not create the same depth of economic activity.
China-plus-one: Malaysia can gain from manufacturers moving some production out of China, but only if large plots are available. “If you don’t have those big blocks available for them, they’ve got to go somewhere else,” he said.
Data centres: he cautioned against industrial parks relying too much on data centres, which have little day-to-day activity and depend on how data centre demand holds up.

At the same session, Siemens Malaysia managing director Tindaro Danze said data centres are capital-intensive but need relatively few workers. Data centre and cloud projects made up RM95.8 billion, or nearly 44%, of approved investments in the first half of 2026, citing Mida figures.

Why Batu Kawan and Bayan Lepas

Bayan Lepas is home to Penang’s first Free Trade Zone, set up in 1972. Batu Kawan on the mainland is the newer hub, with Batu Kawan Industrial Park and its second phase. For recent news, see questions over the BKIP2 developer and Estek Automation’s RM20 million Batu Kawan plant.

For home buyers, the link is jobs. Large plants employ many workers and engineers, which supports demand for homes and rentals in Bayan Lepas, Batu Kawan and nearby areas.

Factory projects on our industrial directory

For comparison, the projects on our Penang industrial directory are individual factory units rather than large plots:

Project	Area	Type	Built-up	Indicative price
Machang Bubuk Signatures	Bukit Mertajam	Semi-D and detached factories and warehouses	3,802–8,070 sq ft	From RM3,860,000
Regalway Industrial Hub	Seberang Perai	Detached light industrial and semi-D shop offices	4,477–9,780 sq ft	RM2,712,000–RM8,202,150
Villa Industrial Park	Permatang Tinggi	Semi-D and detached factories	±7,700–12,700 sq ft	RM4,410,000–RM9,101,000
Sungai Lokan Industrial Park	Butterworth	Semi-D and detached industrial units	9,000–10,800 sq ft	RM5,978,000–RM7,288,000
Northern Techvalley	Bukit Mertajam	1-acre and 2-acre detached factories	From approx. 31,512 sq ft	From RM14,495,442

Frequently asked questions

Who named Batu Kawan and Bayan Lepas as models?

Datuk Stewart LaBrooy, executive chairman of the AREA group, at the Malaysia Industrial Forum 2026 on 11 November.

What plot sizes did he mention?

20 to 50 acres, and in some cases up to 100 acres, for large manufacturers.

What was his concern about smaller factory units?

He said repeated units of 6,000 to 25,000 sq ft are often built for investors and do not create as much economic activity as large manufacturing plants.

Looking for a factory in Penang?

I can share the latest price lists and availability for industrial projects in Penang. WhatsApp or call +60 10-313 9113.

Sources

This article is general information based on published reports as of 12 November 2026. Project prices are indicative and depend on availability.